Motilal Oswal's research report on The Ramco Cements
The Ramco Cements (TRCL)’s 2QFY23 performance missed our estimates on higher opex; though sales volume/realization beat our estimates. EBITDA was at INR1.8b (v/s est. INR2.2b) while blended EBITDA/t was at INR555 (v/s est. INR693). Net profit stood at INR115m (v/s est. INR466m) in 2QFY23. Continued rise in capex (guidance for FY23/24E now stands at INR17.2b/ INR8.9b v/s earlier guidance of INR8.6b/INR6.0b) is likely to result in higher debt going forward. We estimate TRCL’s net debt to be at INR51b/INR50b in FY23/FY24 (v/s earlier est. of INR41.1b/INR35.9b), respectively. We have cut our FY23/FY24 EBITDA estimates by 6%/3% on higher costs. Profit estimates are being reduced by 18%/22% for FY23/FY24 on higher interest/depreciation costs.
Outlook
We maintain our Neutral rating, valuing the stock at 12.5x Sep’24E EV/EBITDA (v/s 14x Mar’24E earlier).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!