Buy Ramco Cements, target price Rs 960: ICICI Securities

ICICI Securities has a buy call on Ramco Cements with a target price of Rs 960. The current market price of Ramco Cements is Rs 930.55. The t Time period given by the analyst is a week when The Ramco Cements Ltd. price can reach defined target. ICICI Securities recommended to keep stoploss at Rs 869.9. The Ramco Cements Ltd, incorporated in 1957, is a Large Cap company with a market cap of Rs 21942.11 crore, operating in the cement sector.

Ramco Cements' key products/revenue segments include Cement, Dry Mortar Mix, Scrap, Ready Mix Concrete, Power and Other Operating Revenue for the year ending 31-Mar-2024.



Financials
For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 2053.94 crore, down -2.27% from last quarter Total Income of Rs 2101.65 crore and down -12.68 % from last year same quarter Total Income of Rs 2352.09 crore. The company has reported net profit after tax of Rs 25.32 crore in the latest quarter.


Investment RationaleRamco Cement has withstood the current broader market sell-off suggesting inherent strength. Post result, the stock witnessed renewed buying interest which has helped it to closed at the highest levels since February. On the options front, the stock has closed above its highest Call base of 900, which is likely to trigger further Call unwinding. Also, the leverage in the stock is near 4 month low and fresh positions are likely to be on long side. Hence, going ahead, ICICI Securities expects Ramco Cement to move towards Rs 960 levels.

Promoter/FII Holdings
Promoters held 42.29 per cent stake in the company as of , while FIIs owned 6.61 per cent, DIIs 30.87 per cent.