CLSA has maintained an ‘Underperform’ rating on Ramco Cements, even as it raised the target price to ₹950, indicating a 17% downside from the current market price of ₹1,143.90. The brokerage expressed concern over the company’s declining volumes and intensifying regional competition.
Ramco reported EBITDA of ₹4 billion for Q1FY26, up 24% YoY and QoQ, largely in line with CLSA’s estimates. The performance was driven by stronger realisations, although a 7% YoY volume decline continued to weigh on market share. Unit EBITDA improved 34% YoY to ₹995, reflecting better pricing discipline in the southern region.
Looking ahead, CLSA remains cautious due to the company’s aggressive capacity expansion plans—from 24 million tonnes to 30 million tonnes by FY26—in a highly competitive southern market. The brokerage believes this may limit both profitability gains and market share recovery.
Disclaimer: The views and recommendations expressed by CLSA are their own and do not represent the opinion of this publication. Investors are advised to consult a certified financial advisor before making any investment decisions.
