India's Ramco Cements beats profit estimates as prices improve

Ramco Cements

05/11/2025 14:10

Nov 5 (Reuters) - India's Ramco Cements TRCE.NS beat second-quarter profit estimates on Wednesday, as cement prices recovered.

The company's standalone net profit after tax nearly tripled year-on-year to 743.1 million Indian rupees ($8.45 million) for the quarter ended September 30. Analysts on average expected 555.7 million rupees, according to data compiled by LSEG.

Its revenue grew by nearly 10% to 22.35 billion rupees, helped by core markets in southern India.

For further results highlights, click [FULL STORY]

KEY CONTEXT

The July-September quarter coincides with India's annual monsoon season, during which construction activity typically dips and demand for cement sags, pressuring prices. While cement prices were little changed sequentially, they were 5% higher in the quarter from last year, Ambit Research data showed.

Analysts expect cement demand to recover in the second half of 2026, as demand accelerates following tax cuts.

Adani-owned firms ACC ACC.NS and Ambuja Cements ABUJ.NS posted a second-quarter profit jump while managing to shield their volumes from seasonal volatility, thanks to the string of deals inked in the sector recently.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Price/Sales
Revenue growth (%)
Profit growth (%)
Mean rating*
No. of analysts
Stock to price target**
Div yield (%)
Ramco Cements
TRCE.NS
37.10
14.03
NULL
11.53
96.32
Hold
21
0.99
0.19
UltraTech Cement
ULTC.NS
33.75
18.67
3.65
13.05
34.20
Buy
37
0.86
0.66
Ambuja Cements
ABUJ.NS
31.78
15.57
3.04
17.94
9.48
Buy
38
0.85
0.35
Dalmia Bharat
DALB.NS
27.81
11.19
2.46
9.89
28.30
Hold
35
0.85
0.44

 * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JULY - SEPTEMBER STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 87.8950 Indian rupees

Ramco Cements stock performance https://tmsnrt.rs/3LJYCSx

 (Reporting by Urvi Dugar, Nishit Navin and Anuran Sadhu in Bengaluru; Editing by Devika Syamnath)

 ((UrviManoj.Dugar@thomsonreuters.com; +91 9558725583;))