India's Ramco Cements misses quarterly profit estimates on weaker prices

Ramco Cements

22/05/2024 14:02

BENGALURU, May 22 (Reuters) - Ramco Cements  TRCE.NS  missed analysts' estimates for fourth-quarter profit on
Wednesday, hurt by weak cement prices, especially in its core market in South India. 
    Standalone net profit after tax fell over 20% year-on-year to 1.21 billion rupees ($14.5 million) during
January-March, missing analysts' expectations of 1.27 billion rupees.
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    KEY CONTEXT
    Ramco Cement derives 75%-81% of its volumes from South India, where cement prices dropped to four-year lows in the
quarter as makers unveiled discounts to push volumes and stave off competition. 
    Higher volumes helped South India-focussed firms Dalmia Bharat  DALB.NS  post a smaller-than-expected profit fall,
while India Cements'  ICMN.NS  losses narrowed on cost-control measures.
    
    PEER COMPARISON 
    
                                  Valuation (next 12    Estimates (next 12         Analysts' sentiment         
                                       months)               months)                                           
                     RIC         PE      EV/EBITDA     Revenue     profit    Mean     # of       Stock to      Div
                                                       growth      growth    rating*  analysts   price         yield
                                                                                                 target**      (%)
 Ramco Cements        TRCE.NS     26.64         11.44    10.65      51.11    HOLD            20      0.78         0.26
 Limited                                                                                                       
 Dalmia Bharat Ltd    DALB.NS     31.19         11.37    10.74      25.34    BUY             28      0.81         0.50
 India Cements Ltd    ICMN.NS    -              14.18    10.78        -      SELL             5      1.21         0.00
 
    
* 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
    
    JANUARY-MARCH STOCK PERFORMANCE 
    
    
-- All data from LSEG IBES 
-- $1 = 83.2600 Indian rupees 

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JANUARY-MARCH STOCK PERFORMANCE    https://tmsnrt.rs/4avc7fR
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 (Reporting by Hritam Mukherjee in Bengaluru, Additional reporting by Manvi Pant; Editing by Sherry Jacob-Phillips and
Ravi Prakash Kumar)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))