Hold Ramco Cements, target price Rs 801: Emkay Global

Emkay Global has given a hold rating to Ramco Cements with a target price of Rs 801. The share price moved up by 0.76 per cent from its previous close of Rs 801.95. The stock’s last traded price is Rs 808.05.

The Ramco Cements Ltd., incorporated in the year 1957, is a Large Cap company (having a market cap of Rs 19099.74 Crore) operating in Cement sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 1216.71 Crore, up 18.89 % from last quarter Sales of Rs 1023.39 Crore and down -5.12 % from last year same quarter Sales of Rs 1282.35 Crore Company has reported net profit after tax of Rs 238.92 Crore in latest quarter.


Investment Rationale
The brokerage has a Hold rating on TRCL with a TP of Rs 801, valuing at 15x Dec’22E EV/EBITDA. It expects a sequential decline in cement realization in the South region in Q3FY21, however, TRCL’s realization growth in Q2 is much ahead of estimates.

Promoter/FII Holdings
Promoters held 42.7 per cent stake in the company as of June 30, 2020, while FIIs held 8.9 per cent, DIIs 24.5 per cent and public and others 24 per cent.