Ramco Cements - 3QFY17 Result Update - Healthy Operating Performance Continues amid Realizations Pressure - Reliance Securities

We believe that a visible up-tick in utilization backed by improvement in southern consumption, sound profitability, consistent balance sheet de-leveraging (reduced debt by Rs5.3bn in 9MFY17), and strong brand equity will aid RCL to reshape its growth, going forward. Moreover, prudent change in fuel-mix and 12MW new CPP will improve RCL's operating synergy further. As we envisage improved operating efficiency with no meaningful capex would lead to healthy FCF generation to Rs26.8bn over FY17E-FY19E, we reiterate our BUY recommendation on the stock with an upwardly revised Target Price of Rs750 (11X FY19 EBITDA).

Shares of The Ramco Cements Limited was last trading in BSE at Rs.688.95 as compared to the previous close of Rs. 678.3. The total number of shares traded during the day was 11214 in over 934 trades.

The stock hit an intraday high of Rs. 693.55 and intraday low of 683. The net turnover during the day was Rs. 7716566.

Source : Equity Bulls

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