Street View: India's Ramco Cements faces further margin squeeze as costs rise
BUZZ-Street View: India's Ramco Cements faces further margin squeeze as costs rise ** Ramco Cements' TRCE.NS Q1 revenue rises 10% y/y on higher volumes but net profit after tax fell 62.9% year-on-year as costs weighed on margins
** Shares rise 3.41% to 965.65 rupees
COST PRESSURES CLOUD OUTLOOK
** Motilal Oswal ("Neutral", TP:900 rupees) says operating performance beat estimates on higher volumes and realisations, but near-term profitability remains under cost pressure
** Kotak Institutional Equities ("Sell", FV:730 rupees) expects margin pressure to peak in Q2 before improving, but remains cautious on aggressive capacity expansion
** Investec ("Sell", TP:717 rupees) says higher volumes supported Q1, but elevated fuel costs and a mineral tax remain key headwinds
** Citi ("Sell", TP:775 rupees) says volumes rebounded from a low base, but flags limited visibility on volume growth and cost improvement
** ICICI Direct says cost per tonne rose 4.7% y/y, but expects profitability to improve from H2FY27 on better demand and cost cuts
(Reporting by Surbhi Misra in Bengaluru)
((Surbhi.Misra@thomsonreuters.com | X: https://twitter.com/SurbhiMisra_ |;))
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