/Buy Ramco Cements, target price Rs 805: Edelweiss

Buy Ramco Cements, target price Rs 805: Edelweiss

Edelweiss has given a buy rating to Ramco Cements with a target price of Rs 805. The share price moved up by 0.17 per cent from its previous close of Rs 753.10. The stock’s last traded price is Rs 754.40.

The Ramco Cements Ltd., incorporated in the year 1957, is a Large Cap company (having a market cap of Rs 17748.35 Crore) operating in Cement sector.

The Ramco Cements Ltd. key Products/Revenue Segments include Cement which contributed Rs 5240.67 Crore to Sales Value (97.61 % of Total Sales), Power which contributed Rs 58.07 Crore to Sales Value (1.08 % of Total Sales), Dry Mortar Mix which contributed Rs 30.59 Crore to Sales Value (0.56 % of Total Sales), Ready Mix Concrete which contributed Rs 14.16 Crore to Sales Value (0.26 % of Total Sales), Other Operating Revenue which contributed Rs 12.98 Crore to Sales Value (0.24 % of Total Sales), Scrap which contributed Rs 11.97 Crore to Sales Value (0.22 % of Total Sales)for the year ending 31-Mar-2020.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 1023.39 Crore, down 25.93 % from last quarter Sales of Rs 1381.74 Crore and down 24.11 % from last year same quarter Sales of Rs 1348.57 Crore. The Company reported net profit after tax of Rs 110.92 Crore in latest quarter.

Investment Rationale
Stock is trading near its March month high and is consolidating from past few sessions. RSI on monthly chart is hovering above 50 which suggest stock is in bullish momentum. The brokerage believes the stock can give breakout in coming days.

Promoter/FII Holdings
Promoters held 42.7 per cent stake in the company as of June 30, 2020, while FIIs held 8.9 per cent, DIIs 24.5 per cent and public and others 24 per cent.

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