The Ramco Cements Q2FY18: Beats estimate; Stretched valuations limit the upside potential | IndiaNotes.com


The Ramco Cements (TRCL) reported Q2FY18 earnings above our expectation on the back of better than expected realisations. Though TRCL remains the best play on Southern region (backed by its quality operations and presence in highly profitable regions); stretched valuations, low earnings growth and restart of new capex limits material upside from current levels. Hence, we maintain Accumulate with a TP of Rs735, EV/EBITDA of 16x FY19E.

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