Ramco Cements
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Ramco Cements is navigating a complex landscape marked by both regulatory relief and persistent cost pressures. Management's recent announcement regarding the cessation of the Mineral Bearing Land Tax in Tamil Nadu is a notable positive, expected to enhance EBITDA margins. However, the company remains cautious due to competitive intensity and market volatility, which could impact pricing strategies. Vista's financial outlook reflects stable revenue growth consistent with historical performance, but margins are anticipated to remain under pressure due to rising input costs and competitive pricing dynamics. The company's strategic focus on capacity expansion and operational efficiency, particularly through the integration of renewable energy sources, positions it for long-term growth. Nevertheless, geopolitical tensions and fluctuating fuel prices present ongoing challenges. Over the next 12-24 months, key opportunities include the successful execution of brownfield expansions and the potential for improved margins from energy cost stabilization. Conversely, watchpoints include the sustainability of cement prices amid rising capacity and the impact of regional demand variations on overall performance
Why We Like This Stock
- Cessation of the Mineral Bearing Land Tax is expected to enhance EBITDA margins
- Strategic capacity expansions and operational efficiencies are prioritized for long-term growth
- Healthy volume growth in B2B and B2C segments indicates resilience in demand
Things To Watch Out For
- Rising input costs and competitive pricing pressures are likely to compress margins
- Geopolitical tensions are inflating energy and logistics costs, impacting profitability
- Market volatility and regional demand variations pose risks to revenue stability
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 9,376 | 8,518 | 9,029 | 9,503 | 10,380 |
| Profit Before Tax (Cr.) | 538 | 119 | 318 | 268 | 394 |
| PBT Margin | 5.7% | 1.4% | 3.5% | 2.8% | 3.8% |
| Net Profit (Cr.) | 457 | 153 | 391 | 252 | 370 |
| Earnings Per Share | 19.5 | 6.6 | 16.5 | 10.6 | 15.7 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| DAM Capital | ▲ Buy | 1,070 | 21-Sep-2026 |
| CLSA | ▼ Underperform | 750 | 27-Aug-2026 |
| ICICI Securities | ► Hold | 942 | 25-Aug-2026 |
| Deven Choksey | ► Hold | 985 | 10-Aug-2026 |
| Jeffries | ► Hold | 900 | 10-Aug-2026 |
| Kotak Securities | ▼ Sell | 730 | 10-Aug-2026 |
| Geojit Financials | ▲ Buy | 1,060 | 17-Jun-2026 |
| HDFC Securities | ▼ Reduce | 830 | 25-May-2026 |
| Emkay Global | ▼ Reduce | 900 | 21-Apr-2026 |
Company Overview
Show Company Profile
The Ramco Cements Limited, together with its subsidiaries, manufactures and sells cement and cement-related products in India and internationally. The company offers blended and ordinary Portland cement products; construction chemicals, including waterproofing, tiling and flooring, mortars and wall, and grouts and repair solutions under the Hard Worker brand; and ready-mix concrete. It also provides technical assistance and after-sales support to builders and customers. In addition, the company is involved in the generation of power from windmills; manpower supply; transportation of goods by road; and information technology services. The company's products are used in construction applications for housing projects, apartments and institutions, public infrastructure projects, and industrial projects. The company serves the commercial and private sectors. It 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.