. THE RAMCO CEMENTS: Cost under control; volume growth surprises (TRCL IN, Mkt Cap USD2.2b, CMP INR752, TP INR785, 4% Upside, Downgrade to Neutral) Aims at 15% volume growth in FY23; downgrade to Neutral from Buy Strong volume growth (up 55% YoY and 13% above our estimate), along with controlled costs (variable cost up a mere INR75/t QoQ), aided the significant beat from our estimate. EBITDA and OPM stood at INR3b and 17% (est. INR2.4b and 15%), respectively. Profit stood at INR1.1b (est. ...
A director at Ramco Cements Ltd sold 76,500 shares at 739.872INR and the significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clea...
THE RAMCO CEMENTS: Optimistic on demand, but wary of near-term cost inflation (TRCL IN, Mkt Cap USD3b, CMP INR944, TP INR1106, 17% Upside, Upgrade to Buy) Upgrade to Buy on strong volume growth opportunities TRCL's 2QFY22 result reflects volume recovery in South India, post the slowdown seen during COVID-19 lockdowns. Volume improved by 27% QoQ and 23% YoY, which helped it to operate its clinker plants at 74% capacity. The company remains a play on the volume recovery theme and one of t...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
The independent financial analyst theScreener just lowered the general evaluation of THE RAMCO CEMENTS (IN), active in the Building Materials & Fixtures industry. As regards its fundamental valuation, the title now shows 0 out of 4 stars while market behaviour can be considered defensive. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Neutral. As of the analysis date May 4, 2021, the closing price was INR 961.60 an...
(TRCL IN, Mkt Cap USD2.3b, CMP INR698, TP INR745, 7% Upside, Neutral) We met Mr S Vaithiyanathan, CFO of The Ramco Cements Limited (TRCL), for an update on the company’s business and growth plans. The company remains focused on growing its presence in core markets of south and east. Key takeaways: Demand recovering, but volume growth to be muted at 5-6% in FY21** Demand trends have been weak in south India over the past few quarters, particularly in Andhra Pradesh (due to the lack of new const...
Q3FY20 result highlights Adj. PAT declined 2% yoy to Rs992mn: due to sluggish volumes and higher costs. Muted volume growth: at 3.5% yoy to 2.84mt weak demand in core markets on monsoons and slower project execution. However, East saw an uptick in demand towards the end of the quarter. However, Ramco grew ahead of industry led by market share gains as also higher exports (+21% yoy). Realizations +1.9% yoy: to Rs4487/t led by price hikes in 1HCY19. However, on qoq basis, realisations dropped...
The Ramco Cements: Disappoints on weaker realizations and higher costs (TRCL IN, Mkt Cap USD2.7b, CMP INR812, TP INR770, 5% Downside, Neutral) Pricing pressure in East/South impacts margins; capacities delayed The Ramco Cement's (TRCL) 3QFY20 results were disappointing on both pricing and costs. Cement EBITDA was down 6% YoY as (a) margin per ton declined 9% YoY (-27% QoQ) to INR714/t due to pricing pressure in the South/East, and (b) higher costs on additional freight/promotional expens...
Q2FY20 result highlights Adj. PAT up 40% yoy to Rs1.69bn: led by strong volume growth. Strong volume growth: of 10.3% yoy to 2.72mt largely driven by market share gains in certain Southern states and 39% yoy growth in export volumes (1H20). East volumes were likely muted on monsoons & floods. Realizations +1.8% yoy: to Rs4720/t led by price hikes in South in Feb-19 and Apr-19. However, on qoq basis, realisations have dropped by Rs321/t (-6%) due to sharp price corrections in 2Q20 across Ram...
THE RAMCO CEMENT: Continues to gain market share, but pricing outlook weak (TRCL IN, Mkt Cap USD2.6b, CMP INR776, TP INR750, 3% Downside, Neutral) Volume growth healthy; Weaker pricing impacting realizations: 2QFY20 volumes surprised positively (up 10% YoY to 2.72mt in a weak demand scenario), implying market share gains. Cement realizations, however, declined 5.6% QoQ to INR4,708/t (+1.8% YoY), due to weaker pricing in the southern and eastern regions of India. Thus, cement EBITDA/t also...
We met Ramco Cement’s management; below are key takeaways Marginal volume growth in 2QFY20: with industry decline at 1-2% yoy in July-Aug 2019. Muted demand is being led by cancellation of orders in AP, extended monsoons and festive season across regions. However, management expects demand to improve in November, post the festive season as construction activity sees an uptick on IHB demand and infra projects. Accordingly, Ramco is likely to see 8-9% yoy volume growth for FY20. Weak pricing...
THE RAMCO CEMENT: Margins seen moderating; Downgrading to Neutral(TRCL IN, Mkt Cap USD2.4b, CMP INR735, TP INR740, 1% Upside, Downgrade to Neutral) ** Volume growth moderates; better realizations drive margins: Volumes increased 3.4% YoY to 2.7mt in 1QFY20. Cement realizations were up 10% YoY at INR4,989/ton. Consequently, revenue grew 14% YoY to INR13.7b (our estimate: INR12.2b) in the quarter. Blended EBITDA/t increased 42% YoY to INR1,277, with cost/t increasing by 2% YoY to INR3,791. Power ...
Q4FY19 result highlights Adj. PAT up 22.5% yoy to Rs1.69bn: on strong volumes and prices. Volume momentum strong with 20% yoy growth to 3.29mt: led by growth across South and East (~25% share). Demand remained strong on continued momentum in AP/Telangana, Tamil Nadu and Karnataka led by infra and housing projects. Realizations increased 1.4% yoy to Rs4634/t (+Rs242/t qoq): led by price hikes in South in Feb-19. We note there have been further price hikes in Apr-19 in both East and West, whi...
The Ramco Cement: Robust traction in volumes; expansion plans bode well for the same (TRCL IN, Mkt Cap USD2.6b, CMP INR765, TP INR880, 15% Upside, Buy) Healthy volumes/realizations: Volumes increased 20% YoY to 3.29mt in 4QFY19, driven by strong growth in the eastern region. Moreover, cement realizations increased 1.5% YoY to INR4,640/ton due to higher prices in south. Consequently, revenue grew 22% YoY to INR15.29b (our estimate: INR13.8b) in the quarter. Profitability restricted by hi...
Q3FY19 result highlights Adj. PAT fell 8.4% yoy to Rs1.01bn: on weak realisations. Volume momentum strong with 21% yoy growth to 2.75mt: led by growth across South and East (~25% share; ~15% growth). Demand remained strong on continued momentum in AP/Telangana, Tamil Nadu and Karnataka led by infra and housing projects. However, demand in Kerala was weak during the quarter. Realizations fell 4.7% yoy to Rs4392/t (-Rs230/t qoq): led by lack of discipline among players. Moreover, adverse volu...
The Ramco Cement: Margins impacted by poor realizations (TRCL IN, Mkt Cap USD1.9b, CMP INR575, TP INR680, 18% Upside, Buy) Healthy growth in south and east aids volume: TRCL's volumes grew 21% YoY to 2.75mt (our estimate: 2.5mt) in 3QFY19, driven by strong growth in the south and east markets. Cement realizations at INR4,392/t (-5% YoY, -5% QoQ) were below our estimate of INR4,542/t due to lower prices in focus markets. Thus, revenue increased 15% YoY to INR12.07b (our estimate: INR11.4b)...
Q2FY19 result highlights Adj. PAT at Rs1.21bn (-25% yoy): as sharp rise in costs (notably P&F and freight) offset strong volume growth. Volumes growth strong at 15% yoy to 2.47mt: led by growth across South and East (25% share) markets. Demand remained strong on continued momentum in AP/Telangana, pick up in Tamil Nadu as also steady growth in Karnataka. However, demand in Kerala was weak during the quarter led by floods. Realizations fell 3.4% yoy to Rs4,622 (+Rs85 qoq): Qoq increase was d...
The Ramco Cement: Margins exceed estimate led by better realizations (TRCL IN, Mkt Cap USD1.9b, CMP INR603, TP INR695, 15% Upside, Buy) Volumes, realizations above estimates: TRCL’s volumes grew 15% YoY to 2.5mt (our estimate: 2.4mt) in 2QFY19, driven by strong growth in the underlying markets. Cement realizations of INR4,622/ton (-3.4% YoY, +2% QoQ) were above our estimate of INR4,577 due to higher prices in the focus markets. Thus, revenue increased 11% YoY to INR11.8b (our estimate: IN...
Ramco Cement: Healthy volume growth; margins impacted (TRCL IN, Mkt Cap USD2.4b, CMP INR696, TP INR802, 15% Upside, Buy) Healthy volume growth from key markets: TRCL’s volumes grew 22% YoY to 2.61mt (our estimate: 2.58mt) in 1QFY19, driven by strong growth in the underlying market. Cement realization declined 1.5% YoY and 0.8% QoQ to INR4,537/ton (our estimate: INR4,621/ton) due to weaker prices in the South partially offset by better prices in the East. Revenue grew 19% YoY to INR12.05b ...
Q1FY19 result highlights Adj. PAT at Rs1.25bn (-19.8% yoy): as sharp rise in costs (notably P&F and freight) offset strong volume growth. Volumes growth strong at 21.6% yoy to 2.61mt: led by higher despatches to East. (+14% yoy; share of east at ~25%) as also robust growth across Southern markets on continued momentum in AP/Telangana, pick up in Tamil Nadu (normalization of sand availability, low base) as also steady growth in Karnataka. However, demand in Kerala was weak particularly during...
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