In a recent research report dated October 5th, 2023, the brokerage firm Sharekhan has recommended a “Buy” rating for Ramco Cements’ stocks, setting a target price of 1,130 rupees. This suggests a potential upward movement of over 19% in the stock’s value.
Sharekhan’s report also highlighted that the average prices of cement in the southern region saw an increase of approximately 40 rupees per bag during October. This is a 10% surge when compared to the average prices in Q2FY2024. Furthermore, there has been a noticeable decline in the costs of international coal and domestic pet coke after Q2FY2024. This decline, combined with the strong demand environment,
has resulted in enhanced operational profitability for cement prices. Keeping in view the robust demand environment, the company has set a target of an annual volume growth of 20% for the fiscal year 2024. The company’s 0.9 mtpa grinding unit in Odisha is anticipated to commence operations by the end of FY2024.
In terms of stock performance, Ramco Cements’ shares have seen a 5% rise in the past month alone. Over the past six months, the stock has delivered a commendable return of nearly 25%. This year, the stock has already ascended by about 34%, and over the previous year, the increase stands at 31%.
