Neutral The Ramco Cements; target of Rs 850: Motilal Oswal

Moneycontrol • 4 days ago

Original source

Key Investment Pillars

  • The Ramco Cements' (TRCL) 2QFY27 performance was above estimates, led by higher-than-estimated volume and realization.
  • The company's operating performance was supported by higher cement volumes and improved realizations, alongside strong construction chemicals growth.
  • Near-term profitability is likely to remain impacted by high coal costs.
  • Capacity expansion to 31mtpa by Mar'27, Kolimigundla commissioning, and further non-core asset monetization remain key monitorables.

Thesis Validation Checklist

  • The company's ability to maintain higher realization and volumes, despite high coal costs, will be a key factor to watch.
  • Progress on capacity expansion and non-core asset monetization will be closely monitored.
  • Any changes in the competitive landscape, regulatory environment, or demand trends in the cement industry may impact the company's performance.
  • Investors should track the company's debt reduction and improvement in return on equity (ROE) over the next 12 months.