INSUBCONTINENT EXCLUSIVE:
JM Financial has upgraded The Ramco Cements from hold to buy in the long term with a target price of Rs 935
The stock gained half a percent to Rs 819 on Friday while the BSE Sensesex closed 12.81 points (0.03%) up at 41,945.37.
Company
FinancialsFor the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 1282.35 crore, down -4.91 % from last quarter
sales of Rs 1348.57 crore and up 12.36 % from last year same quarter sales of Rs 1141.26 crore
The company has reported net profit after tax of Rs 170.10 crore in the latest quarter
The company’s top management includes Justice(Retd)Chitra Venkataraman, Mr.M B N Rao, Mr.M F Farooqui, Mr.M M Venkatachalam, Mr.M S
Krishnan, Mr.P R Venketrama Raja, Mr.R S Agarwal
Company has SRSV - Associates as its auditors
As on 31-12-2019, the company has a total of 235,576,780 shares outstanding
Investment RationaleThe brokerage upgraded the stock citing the ramp up in new capacities which is likely to reduce company’s debt and
improve return ratios materially
While the new capacity will be setup at a cost of Rs 3,530 crore, fundamentals are set to improve due to reduction in exposure to South
market to 85% from 87%, according to the brokerage
Despite expansion, the net debt-to-EBITDA stands at comfortable level of 1.94x, said JM Financial
The stock gained half a percent to Rs 819 on Friday.