Ramco Cements share price has been under selling pressure since its opening today, following the announcement of Q2FY23 results on Wednesday. Ramco Cements share price today opened lower and went to intraday low 634.05 each, about 10 percent less than Wednesday’s closing price 704.15 per share on NSE.
According to Share Market According to experts, Ramco Cements has declared weak results and it has missed the estimates by a huge margin. He said that the stock is expected to remain weak for the short term and fresh buying can be done around from 580 600 each level. For safe investors, he recommends buying above 680 each level.
On Ramco Cements Q2 results, Motilal Oswal reports, “The 2QFY23 performance of Ramco Cements (TRCL) missed our estimates at higher OPEX; however sales volume/realization outperformed our estimates. EBITDA was at 1.8b (against the estimated 2.2b) while compound EBITDA was at /t 555 (against estimates of .) 693). stay on net profit 115 m (against the estimated estimate of .) 466m) in 2QFY23.”
Maintaining neutral rating on the stock, Motilal Oswal said, “We have cut our FY23/FY24 EBITDA estimates by 6%/3% on higher cost. Profit estimates for FY23/FY24 by 18%/22% on higher interest is being reduced. Depreciation cost. We maintain our neutral rating, valuing the stock at 12.5x Sep’24E EV/EBITDA (v/s 14x Mar’24E ago).”
Expecting weakness in Ramco Cements shares to continue, Sumeet Bagadiya, Executive Director, Choice Broking said, “Ramco Cements share price is looking weak on the chart pattern and may move towards its support zone. from 600 580 each level. On the upside, it is facing the obstacle 680. For stock holders, on stop loss 580 is reasonable and high risk investors can make fresh purchases or accumulations from 580 600 support zone. However, for safe investors, shop above 680 is reasonable.”
In the second quarter results announced on Wednesday, Ramco Cements reported a 98 per cent year-on-year decline in its consolidated profit. During 02 of CV, the Company has spent Rs.504 crore towards CAPEX, which also includes the ongoing capacity expansion program mentioned above. The net debt of the company as on 30-9-2022 stood at Rs. 4,741 crore, of which Rs 724 crore is short-term debt. The average cost of interest-bearing borrowing for 02 of CV increased from 5.47% in Q2 of PY to 6.42%.
Mixed Ebitda per tonne for Q2 of CV is Rs.582/- as against Rs.1,484/- during Q2 of PY, which is lowest in last 8 years.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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