Ramco Cements Q2 Review - Muted Quarter, Fair Valuation: Dolat Capital
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Dolat Capital Report
The Ramco Cements Ltd.’s revenue, Ebitda, volume, realisation and Ebitda /tonne in line but adjusted profit after tax above estimates.
The company posted muted numbers with up 18.8%/ down 10.9%/ down 8.7% YoY growth in revenue/ Ebitda/ adjusted profit after tax to Rs 14.9 billion/ Rs 3.9 billion/ Rs 2.2 billion led by up 22.5%/ down 2.5% YoY growth in volume/ realisation (down 4.7% QoQ).
We expect 14.0%/ 11.0%/ 13.7% revenue/ Ebitda/ adjusted profit after tax compound annual growth rate over FY21-24E led by 16.0%/ 14.0%/ 7.0% volume growth and up 3.0%/ up 1.0%/ 1.0% realisation growth in FY22E/ FY23E/ FY24E.
We broadly maintain our FY22E/ FY23E and we introduce FY24E.
We like Ramco Cements for its strong distribution and healthy profitability metrics (despite turbulent south markets).
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