Hold The Ramco Cements Ltd., target Rs 570.0 : Reliance Securities

Reliance Securities has Hold call on The Ramco Cements Ltd. with a target price of Rs 570.0. The current market price of The Ramco Cements Ltd. is 550.5. Time period given by analyst is year, when The Ramco Cements Ltd. price can reach defined target. Reliance Securities believes that a possible uptick in utilization backed by improvement in southern consumption, sound profitability, consistent balance sheet deleveraging, and a strong brand equity, etc. will aid RCL to shape its growth, going forward. Moreover, expected change in fuel mix (~70% petcoke in FY17 v/s 50% in FY16) and 12MW new CPP will improve the Company’s operating synergy further.