CLSA retains buy on Ramco Cements, raises target price to Rs 1,050

CLSA has raised target price on Ramco Cements to Rs 1,050 from Rs 970 while retaining a buy recommendation in the long term. Shares of Ramco Cements ended up 1.1% at Rs 784.25 on Thursday while the BSE Sensex closed 77.18 points up at 40,129.05.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 1282.35 crore, down -4.91 % from last quarter sales of Rs 1348.57 crore and up 12.36 % from last year same quarter sales of Rs 1141.26 crore. The company has reported net profit after tax of Rs 170.10 crore in the latest quarter.


Investment rationale

The brokerage has raised earnings estimates due to betterthan-expected results. CLSA said Ramco Cements remains its preferred pick due to its focus on growth and cost optimisation, although weak cement prices in south and east India are near term concerns.