Ramco Cements
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Ramco Cements is navigating a complex landscape characterized by both growth opportunities and margin pressures. Management's commentary highlights a positive outlook driven by government infrastructure spending and strategic capacity expansions, targeting ~31 MTPA by FY27. This ambitious plan includes debottlenecking and brownfield expansions, which are expected to enhance revenue growth and market share. However, the company faces challenges from rising raw material costs and competitive pricing pressures, which could impact margins. Vista's financial outlook reflects stable revenue growth consistent with historical performance, although margins may experience slight pressure due to these cost dynamics. The anticipated capex of Rs.800cr for FY27 is a critical component of Ramco's strategy to bolster long-term growth, while asset monetization efforts aim to improve capital allocation. The macro environment remains supportive, with robust infrastructure investments and contained inflation, although crude oil prices pose a risk. Over the next 12-24 months, key opportunities include successful capacity expansion and improved energy cost management, while watchpoints include ongoing margin pressures and market sentiment fluctuations
Why We Like This Stock
- Management's focus on capacity expansion to ~31 MTPA by FY27 is expected to drive revenue growth
- Government infrastructure spending is anticipated to support demand recovery in the cement sector
- Strategic asset monetization efforts will enhance capital allocation and support deleveraging
Things To Watch Out For
- Rising raw material costs and competitive pricing pressures may lead to margin compression
- Weak cash conversion relative to the asset base could hinder operational efficiency
- Cautious investor sentiment reflects concerns over subdued growth and margin pressures
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 9,376 | 8,518 | 9,029 | 9,520 | 10,476 |
| Profit Before Tax (Cr.) | 538 | 119 | 318 | 238 | 401 |
| PBT Margin | 5.7% | 1.4% | 352.2% | 2.5% | 3.8% |
| Net Profit (Cr.) | 457 | 153 | 391 | 224 | 377 |
| Earnings Per Share | 19.5 | 6.6 | 16.5 | 9.5 | 16.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| CLSA | ▼ Underperform | 755 | 02-Apr-2026 |
| DAM Capital | ▲ Buy | 1,010 | 02-Apr-2026 |
| Emkay Global | ▼ Reduce | 900 | 21-Apr-2026 |
| Geojit Financials | ▲ Buy | 1,060 | 17-Jun-2026 |
| HDFC Securities | ▼ Reduce | 830 | 25-May-2026 |
| ICICI Securities | ► Hold | 942 | 25-May-2026 |
| Jeffries | ► Hold | 900 | 10-Aug-2026 |
| Kotak Securities | ▼ Sell | 730 | 10-Aug-2026 |
Company Overview
Show Company Profile
The Ramco Cements Limited manufactures and sells cement and construction Chemicals in India. The company offers blended cements and OPC products; ready mix concrete; and construction chemical products, including waterproofing compound, anchoring grout, micro concrete, bonding agent, plaster and putty, block fix, Tilefix, and Tilegrout. It also provides construction solutions for housing projects, apartments/institutions, public infrastructure projects, and industrial projects; and technical assistance and after-sales support to builders and customers. In addition, the company is involved in the generation and sale of electricity from windmills and thermal power plants; manpower supply; transportation of goods by road; and information technology services. It also sells its products to the Maldives and Myanmar through direct and merchant exports. The company was formerly known as Madras Cements Ltd. and changed its name to The Ramco Cements Limited in July 2013. The Ramco Cements Limited was incorporated in 1957 and is headquartered in Chennai, India.