Jefferies has maintained a ‘Hold’ rating on Ramco Cements, raising the target price to ₹1,020 from earlier levels. This revised target implies an 11% downside from the current market price of ₹1,143.90. The brokerage flagged weak volumes in Q1FY26 but noted strong pricing discipline in the southern region as a key positive.
Ramco reported a 24% YoY rise in EBITDA at ₹3.98 billion for the quarter, although slightly below estimates due to a 7% YoY volume decline. However, unit EBITDA surged 61% QoQ to ₹995 per tonne, supported by better-than-expected realisations. Cement prices have largely held up in Q2FY26 so far, further supporting the earnings outlook.
Jefferies has marginally increased its FY26 EBITDA estimates by 3–5%, factoring in continued pricing strength, but remained cautious due to the lack of volume growth and ongoing competition in the southern markets.
Disclaimer: The views and investment suggestions expressed by Jefferies are their own and do not represent the opinion of this publication. Investors are advised to consult certified financial advisors before making any investment decisions.
