The Ramco Cements
Estimate change
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
25 May 2021
4QFY21 Results Update | Sector: Cement
CMP: INR973
TP: INR960 (-1%)
Adverse regional mix leads to weaker margins
TRCL IN
236
229.5 / 3.1
1120 / 570
-4/-2/5
649
Neutral
Maintain Neutral – valuation prices in strong growth outlook
The Ramco Cements (TRCL)’s 4Q result highlights the adverse impact of
higher sales in the East India market, resulting in QoQ decline in EBITDA/t to
INR1,399 – weighed by both lower realization and higher cost.
Our FY22E/FY23E estimates are broadly unchanged. We retain our
Neutral
rating as we believe the valuation at 13.1x FY23E EV/EBITDA prices in the
expectation of a strong 16% volume CAGR over FY21–23E.
Revenue/EBITDA/PAT rose 17%/61%/47% YoY to INR16.3b/INR4.5b/INR2.1b
(+2%/+3%/-11% v/s our estimates).
Volumes were up 9% YoY to 3.21mt (v/s our est. of 3.15mt), whereas
EBITDA/t declined 8% QoQ to INR1,399/t (+47% YoY). Blended realization
declined 1% QoQ to INR5,080/t (in line with our est.), due to higher share of
sales in East India, while it was up 7% YoY on higher prices in South India.
Cost/t fell 3% YoY to INR3,681/t on better fixed cost absorption (from higher
volumes) and lower power and fuel costs (due to low-cost inventory).
FY21 OCF/capex stood at INR17.3b/INR18.0b (v/s INR7.0b/INR18.8b in
FY20). FCF was negative for FY21/FY20 at INR0.7b/INR11.8b on account of
capex.
FY21 revenue/EBITDA/PAT stood at INR52.7b/INR15.5b/INR7.6b (-
1%/+39%/+27% YoY). Volumes declined 11% YoY to 9.98mt. The EBITDA
margin stood at 29.4% (v/s 20.9% in FY20).
Clinker expansion projects at Jayanthipuram (1.5mtpa) and Kurnool
(2.25mtpa) have been delayed to Jun’21 and Sep’21, respectively, due to
labor availability issues. At Kurnool, the commissioning of a 1mtpa grinding
unit, a 12MW waste heat recovery system (WHRS), and an 18MW thermal
power plant (TPP) have been postponed to FY23.
The petcoke mix stood at 23%/41% in 4QFY21/FY21 v/s 57%/48% in
4QFY20/FY20. TRCL benefitted from low-cost inventory in 4QFY21 and
continues to carry this even in 1QFY22. This should keep the power and fuel
cost increase in check despite higher petcoke and coal prices.
Clinker utilization stood at 92%/73% in 4QFY21/FY21.
Gross debt stands at INR31.0b, including INR2.2b interest-free debt. Average
cost of debt stands at 6.1% p.a. v/s 6.71% p.a. in Mar’20. Net debt/EBITDA
stands at 1.89 v/s 2.52 in Mar’20.
The company would not earn any fiscal incentive on its new projects.
TRCL is expected to gain market share in its operating regions (South/East),
led by capacity expansions over the next six months. We expect a 16%
volume CAGR over FY21–23E, supported by a low base and expansions.
The stock trades at 13.1x FY23E EV/EBITDA and USD142/t capacity, at a
significant premium to peers. We value it at 13x FY23E EV/EBITDA (in line
with the 10-yr average) to arrive at TP of INR960. We maintain
Neutral.
Financial Snapshot (INR b)
Y/E Mar
2021 2022E 2023E
Sales
52.7 61.1 70.8
EBITDA
15.5 16.2 18.4
Adj. PAT
7.6
8.1
9.4
EBITDA Margin (%)
29.4 26.5 26.0
Adj. EPS (INR)
32.3 34.5 39.8
EPS Gr. (%)
26.5
6.9 15.5
BV/Sh. (INR)
239
268
302
Ratios
Net D:E
0.5
0.5
0.3
RoE (%)
14.4 13.6 14.0
RoCE (%)
9.8 10.1 10.8
Payout (%)
9.3 14.5 15.1
Valuations
P/E (x)
30.2 28.2 24.4
P/BV (x)
4.1
3.6
3.2
EV/EBITDA(x)
15.2 15.2 13.1
EV/ton (USD)
152
151
142
Div. Yield (%)
0.3
0.5
0.6
FCF Yield (%)
-0.3
0.8
6.0
EBITDA up 61% YoY
Highlights from management commentary
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Mar-21 Dec-20 Mar-20
42.5
42.6
42.7
26.6
26.3
27.9
8.3
8.0
8.9
22.6
23.1
20.6
FII Includes depository receipts
Valuation and view
Amit Murarka - Research analyst
(Amit.Murarka@motilaloswal.com)
Research analyst - Basant Joshi
(Basant.Joshi@motilaloswal.com);
Jayant Gautam
(Jayant.Gautam@motilaloswal.com)
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
25 May 2021
1
Investors are advised to refer through important disclosures made at the last page of the Research Report.
 Motilal Oswal Financial Services
The Ramco Cements
Quarterly Performance
Y/E March
Sales Dispatches (m ton)
YoY Change (%)
Realization (INR/ton)
YoY Change (%)
QoQ Change (%)
Net Sales
YoY Change (%)
EBITDA
Margins (%)
Depreciation
Interest
Other Income
PBT before EO expense
Extra-Ord expense
PBT
Tax
Rate (%)
Reported PAT
Adj PAT
YoY Change (%)
Margins (%)
Per ton analysis (incl. Windmills)
Net realization
YoY (%)
RM Cost
Employee Expenses
Power, Oil & Fuel
Freight and Handling Outward
Other Expenses
Total Expenses
EBITDA
Cement EBITDA (ex-Windmills)
1Q
2.70
3.4
4,989
10.0
7.5
13,698
13.7
3,452
25.2
758
135
223
2,782
0
2,782
862
31.0
1,920
1,920
53.6
14.0
5,068
10.0
743
327
984
1,040
696
3,791
1,277
1,217
FY20
FY21
FY20
FY21
2Q
3Q
4Q
1Q
2Q
3Q
4Q
2.72
2.84
2.93
1.94
2.21
2.61
3.21 11.20
9.98
10.3
3.5
-10.9
-28.2
-18.9
-8.1
9.5
0.7
-10.9
4,708 4,475 4,725 5,284 5,558 5,090 5,072 4,718 5,221
1.8
1.9
1.8
5.9
18.1
13.7
7.3
3.7
10.7
-5.6
-4.9
5.6
11.8
5.2
-8.4
-0.4
13,129 12,746 13,899 10,418 12,570 13,391 16,306 53,435 52,684
11.2
5.6
-9.1
-23.9
-4.3
5.1
17.3
4.3
-1.4
2,915 1,995 2,793 2,600 4,420 3,970 4,490 11,117 15,480
22.2
15.6
20.1
25.0
35.2
29.6
27.5
20.8
29.4
765
797
833
844
855
896
958 3,153 3,553
147
215
216
299
265
160
152
714
876
129
119
114
101
83
64
99
622
346
2,132 1,101 1,858 1,557 3,383 2,977 3,479 7,872 11,397
0
0
0
0
0
0
0
0
0
2,132 1,101 1,858 1,557 3,383 2,977 3,479 7,872 11,397
450
153
396
461 1,026
964 1,336 1,861 3,786
21.1
13.9
21.3
29.6
30.3
32.4
38.4
23.6
33.2
1,682
948 1,462 1,096 2,358 2,014 2,144 6,011 7,611
1,682
948 1,462 1,096 2,358 2,014 2,144 6,011 7,611
46.9
-6.2
-13.2
-42.9
40.2 112.4
46.6
18.1
26.6
12.8
7.4
10.5
10.5
18.8
15.0
13.1
11.2
14.4
4,820
0.8
733
362
996
990
668
3,750
1,070
977
4,482
2.0
834
339
911
996
700
3,780
701
714
4,740
2.0
805
288
868
1,037
790
3,788
952
955
5,370
6.0
972
502
779
1,040
737
4,030
1,340
1,283
5,688
18.0
731
498
824
978
656
3,688
2,000
1,895
5,123
14.3
822
382
818
1,007
575
3,604
1,519
1,508
5,080
7.2
936
295
771
1,074
605
3,681
1,399
1,417
4,770
3.6
780
329
938
1,016
715
3,777
992
959
5,279
10.7
867
403
796
1,028
634
3,728
1,551
1,520
(INR m)
FY21
Var.
4QE
(%)
3.15
2
7.5
5,044
1
6.8
-0.9
15,936
2
14.7
4,344
3
27.3
924
192
88
3,316
5
0
3,316
5
920
27.7
2,397
-11
2,397
-11
63.9
15.0
(INR/t)
5,058
6.7
772
345
906
1,018
639
3,679
1,379
1,381
0
7
21
-14
-15
6
-5
0
1
3
Highlights from management commentary
Operational highlights
Sales volume stood at 3.21mt in 4Q (v/s 2.93mt in 4QFY20) and 9.98mt for FY21
(v/s 11.20mt for FY20).
Clinker-based utilization stood at 92%/73% in 4QFY21/FY21 v/s 93%/90% in
4QFY20/FY20.
Lead distance stood at 341km/327km for 4QFY21/FY21 v/s 301km/288km in
4QFY20/FY20.
Trade sales accounted for 76% of sales volumes in FY21 (v/s 76% in FY20).
Cost insights
FY21 saw an 11% YoY increase in diesel prices, leading to an increase in freight
cost.
The petcoke mix stood at 23%/41% in 4QFY21/FY21 v/s 57%/48% in
4QFY20/FY20.
Petcoke prices surged to USD110/t in FY21 (from USD70/t), but the company
benefitted from low-cost inventory. It also increased the use of imported coal
and alternative fuel.
25 May 2021
2
 Motilal Oswal Financial Services
The Ramco Cements
It purchased 149kt/304kt of clinker in 4QFY21/FY21. The cost differential
between purchased clinker and clinker produced at its own plant is INR500/t.
In FY21, cost of HDPE bags increased due to a sharp hike in polymer prices and
supply chain constraints due to COVID-19.
The blending ratio for FY21 improved 300bps YoY.
Operations at the 18MW WHRS at Jayanthipuram helped manage power cost in
2HFY21.
Its imported coal inventory would last up to 1QFY22. The cost of underlying
petcoke/coal inventory stands at USD95/USD80 per ton.
Advertising and other variable costs would go up once the lockdown eases and
the situation normalizes.
Road dispatches account for 100% of sales in South, while they account for 80%
in East.
Debt
Gross debt stands at INR31.0b, including INR2.2b interest-free debt.
Average cost of debt stands at 6.1% p.a. v/s 6.71% p.a. in Mar’20.
Net debt/EBITDA stands at 1.89 v/s 2.52 in Mar’20.
Capex
Expansion projects at Jayanthipuram and Kurnool have been delayed due to
labor availability issues triggered by the COVID-19 pandemic.
A 1.5mt clinker at Jayanthipuram is expected to be commissioned in 1QFY22,
while a 9MW WHRS is expected to be commissioned in FY22 (18MW has already
been commissioned).
A 2.25mt clinker at Kurnool is expected to be commissioned in 2QFY22, while a
1.0mt grinding unit and 12MW WHRS / 18MW TPP are expected to be
commissioned in FY23.
The company incurred capex of INR6.0b/INR17.7b in 4QFY21/FY21. INR5.0–6.0b
of capex for the ongoing projects is pending, which would be spent in FY22.
The maintenance capex has been guided at INR1.5–1.8b for FY22.
Other highlights
The brand is well-established in East now, and with new capacity, the company
is confident of gaining market share in the region.
The company would take a call on further expansions post the completion of
ongoing projects.
A change in the Tamil Nadu government augurs well for the Cement industry,
while the management does not expect any change in policies in Kerala.
The company would not see any incentive for sales in Odisha, while there is no
clarity on the incentive in West Bengal. It does not have any incentive for
Andhra Pradesh sales either.
The company plans to launch new products once the lockdown is lifted (most
likely in June). It has no immediate plans to venture into other related product
segments (such as Paints).
25 May 2021
3
 Motilal Oswal Financial Services
The Ramco Cements
Key exhibits
Exhibit 1:
Volumes up 9% YoY in 4QFY21
Volume (MT)
Growth YoY (%)
Source: MOFSL, Company
Exhibit 2:
Realization up 7% YoY / flat QoQ in 4QFY21
Realization (INR/ton)
Source: MOFSL, Company
Exhibit 3:
Margins decline 2.1pp QoQ
EBITDA (INR m)
Margin (%)
Exhibit 4:
Blended EBITDA/t down 8% QoQ
Source: MOFSL, Company
Source: MOFSL, Company
25 May 2021
4
 Motilal Oswal Financial Services
The Ramco Cements
Exhibit 5:
Key performance indicators – per ton analysis
INR/t
Net realization
RM Cost
Employee Expenses
Power, Oil & Fuel
Freight and Handling Outward
Other Expenses
Total Expenses
EBITDA
Cement EBITDA (ex-Windmills)
4QFY21
5,080
936
295
771
1,074
605
3,681
1,399
1,417
4QFY20
4,740
805
288
868
1,037
790
3,788
952
955
YoY (%)
7.2
16.2
2.3
(11.1)
3.6
(23.5)
3QFY21
5,123
(2.8)
46.9
48.4
3,604
2.1
1,519
(7.9)
1,508
(6.0)
Source: MOFSL, Company
822
382
818
1,007
575
QoQ (%)
(0.8)
13.8
(22.8)
(5.7)
6.6
5.1
Volume growth to remain ahead of industry:
TRCL sells ~75% of its volumes in
South, which posted volume decline in both FY20 and FY21. However, TRCL has
been gaining market share in the region, driven by its aggressive marketing strategy
and new product launches in niche segments. It is also expanding its clinker capacity
by 35% by setting up two new clinker plants in the region (Andhra Pradesh) – 1.5mt
in Jayanthipuram and 2.3mt in Kurnool – which should get commissioned in 1QFY22
and 2QFY22, respectively. The new clinker capacity would also serve East, for which
TRCL has set up 3mtpa grinding capacities. We estimate a 16% CAGR in TRCL’s
volumes over FY21–23E v/s a 10% CAGR for the industry.
Pricing outlook in East not promising:
TRCL’s commissioning of new cement
grinding units in East would help the company strengthen its presence in the region.
However, over the medium term, we see pricing in East to remain under pressure on
significant capacity additions (nearly 30% expansion over the next 24M).
Valuation:
The stock trades at 13.1x FY23E EV/EBITDA, a significant premium to
mid-cap peers. On an asset valuation basis, it trades at USD142/t. We value the
stock at 13x FY23E EV/EBITDA (in line with the 10-yr average) to arrive at TP of
INR960. We maintain
Neutral.
Valuation and view
25 May 2021
5
 Motilal Oswal Financial Services
The Ramco Cements
Story in charts
Exhibit 6:
Volumes CAGR estimated at 16% over FY21–23E
Dispatch (mt)
16
20
12
2
-11
7.7
FY15
-6
7.2
FY16
8.3
FY17
9.3
FY18
11.1
FY19
11.2
FY20
-13
10.0
11.6
13.4
Growth (YoY %)
16
16
Exhibit 7:
EBITDA/ton trend (INR/t)
FY21 FY22E FY23E
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 8:
Net debt increase on high capex
Net debt (INR b)
5.0
2.4
3.5
Net Debt/EBITDA(x)
Exhibit 9:
Trend in RoE and RoCE
25.0
RoE (%)
RoCE (%)
1.9
1.1
0.9
1.5
2.6
1.9
1.9
1.0
20.0
15.0
10.0
5.0
0.0
23
26
23
20
13
10
15
29
29
30
19
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 10:
TRCL EV/EBITDA trend
EV/EBDITA(x)
25.0
20.0
15.0
10.0
5.0
0.0
Peak(x)
Avg(x)
Min(x)
Exhibit 11:
TRCL EV/ton trend
200
150
100
50
0
EV/ton (US$)
Max
Avg
Min
Source: MOFSL, Company
Source: MOFSL, Company
25 May 2021
6
 Motilal Oswal Financial Services
The Ramco Cements
Financials and valuations
Income Statement
Y/E March
Net Sales
Change (%)
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income - Rec.
PBT bef. EO Exp.
EO Expense/(Income)
PBT after EO Exp.
Current Tax
Deferred Tax
Tax Rate (%)
Reported PAT
PAT Adj for EO items
Change (%)
Margin (%)
Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Deferred Liabilities
Total Loans
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Provisions
Net Current Assets
Appl. of Funds
2016
35,507
-1.2
10,490
29.5
3,048
7,442
1,819
1,110
6,734
-238
6,972
1,498
53
22.2
5,422
5,184
113.9
14.6
2016
238
30,697
30,935
7,155
21,230
59,320
75,444
26,348
49,097
1,383
3,716
14,746
5,490
4,721
908
3,627
9,622
9,238
384
5,124
59,320
2017
39,292
10.7
11,743
29.9
2,845
8,898
1,035
639
8,502
-20
8,522
1,870
159
23.8
6,493
6,473
24.9
16.5
2017
238
37,177
37,415
7,281
14,248
58,945
78,345
28,693
49,652
974
3,890
15,573
5,754
5,549
1,181
3,089
11,144
10,643
501
4,429
58,945
2018
43,851
11.6
10,658
24.3
2,922
7,736
592
579
7,723
87
7,636
1,859
220
27.2
5,557
5,644
-12.8
12.9
2018
236
40,186
40,422
7,597
11,132
59,150
81,976
31,121
50,854
1,500
3,968
14,581
5,599
4,423
1,194
3,365
11,754
11,183
571
2,827
59,150
2019
51,220
16.8
10,123
19.8
2,985
7,138
509
527
7,156
30
7,126
1,846
221
29.0
5,059
5,089
-9.8
9.9
2019
236
44,366
44,601
8,704
16,187
69,493
84,945
33,514
51,431
8,308
4,294
17,049
5,597
4,900
928
5,625
11,589
11,179
410
5,461
69,493
2020
53,435
4.3
11,117
20.8
3,153
7,964
714
622
7,872
0
7,872
1,393
469
23.6
6,011
6,011
18.1
11.2
2020
236
48,950
49,186
9,172
30,241
88,599
93,901
35,757
58,144
18,143
4,275
19,908
6,453
5,269
914
7,273
11,871
11,341
531
8,037
88,599
2021
52,684
-1.4
15,480
29.4
3,553
11,927
876
346
11,397
0
11,397
2,440
1,346
33.2
7,611
7,611
26.6
14.4
2021
236
56,032
56,268
10,877
31,017
98,162
106,813
39,310
67,503
23,255
4,369
18,331
5,979
3,752
1,419
7,181
15,296
14,655
641
3,035
98,162
2022E
61,073
15.9
16,191
26.5
4,185
12,006
1,373
516
11,149
0
11,149
3,010
0
27.0
8,139
8,139
6.9
13.3
2022E
236
62,991
63,227
10,877
30,017
104,121
125,713
43,495
82,218
12,915
4,369
19,059
6,693
4,349
-308
8,325
14,439
13,386
1,054
4,620
104,121
(INR m)
2023E
70,785
15.9
18,370
26.0
4,715
13,656
1,476
695
12,875
1
12,874
3,476
0
27.0
9,398
9,399
15.5
13.3
(INR m)
2023E
236
70,974
71,210
10,877
29,017
111,104
136,213
48,210
88,003
6,915
4,369
32,024
7,757
5,041
9,578
9,648
20,207
15,515
4,693
11,817
111,104
25 May 2021
7
 Motilal Oswal Financial Services
The Ramco Cements
Financials and valuations
Ratios
Y/E March
Basic (INR)
Consol EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
EV/Ton (US$)
Dividend Yield (%)
Return Ratios (%)
RoIC
RoE
RoCE
Working Capital Ratios
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Debt/Equity
Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
E: MOFSL Estimates
2016
21.8
34.6
129.9
3.0
15.9
44.7
28.1
7.5
7.0
23.6
201
0.3
10.7
18.1
12.6
0.6
56.4
41.9
95.0
1.5
0.7
2016
6,734
3,248
1,705
-1,483
930
11,134
-283
10,851
-2,771
8,080
0
1,637
-1,134
0
-6,517
-1,621
-1,291
0
-9,428
289
618
907
2017
27.2
39.1
157.1
3.0
10.9
35.8
24.9
6.2
6.1
20.5
196
0.3
12.8
18.9
14.0
0.7
53.5
44.6
98.9
1.4
0.4
2017
8,502
2,845
774
-1,894
848
11,073
-19
11,054
-3,043
8,011
0
-1,151
-4,194
0
-5,496
-1,090
0
0
-6,586
274
907
1181
2018
24.0
36.4
171.6
3.0
12.7
40.6
26.8
5.7
5.4
22.3
190
0.3
10.7
14.5
11.7
0.7
46.6
35.5
93.1
1.2
0.3
2018
7,847
2,922
436
-1,713
1,564
11,055
74
11,129
-4,942
6,187
0
1,698
-3,244
0
-4,682
-658
-852
-1,681
-7,872
13
1,181
1194
2019
21.6
34.3
189.3
3.0
16.8
45.0
28.4
5.1
4.6
23.3
189
0.3
9.3
12.0
9.7
0.7
39.9
34.9
79.7
1.5
0.4
2019
7,156
2,985
404
-1,584
-929
8,032
-127
7,904
-12,018
-4,114
9
-2,588
-14,597
0
7,755
-476
-853
0
6,426
-266
1,194
927
2020
25.5
38.9
208.8
2.5
11.8
38.1
25.0
4.7
4.5
21.6
171
0.3
10.0
12.8
9.4
0.6
44.1
36.0
77.5
1.7
0.6
2020
7,872
3,153
714
-1,861
-2,590
7,287
-273
7,014
-18,791
-11,777
19
-885
-19,657
0
14,054
-714
-711
0
12,630
-13
927
914
2021
32.3
47.3
238.5
3.0
9.3
30.2
20.6
4.1
4.5
15.2
152
0.3
11.9
14.4
9.8
0.5
41.4
26.0
101.5
1.2
0.6
2021
11,397
3,553
876
-3,786
5,507
17,547
-272
17,275
-18,024
-749
-94
2,156
-15,963
0
776
-876
-708
0
-807
505
914
1,419
2022E
34.5
52.2
268.0
5.0
14.5
28.2
18.6
3.6
4.0
15.2
151
0.5
11.2
13.6
10.1
0.6
40.0
26.0
80.0
1.3
0.5
2022E
11,149
4,185
1,373
-3,010
-3,311
10,386
0
10,386
-8,560
1,826
0
0
-8,560
0
-1,000
-1,373
-1,180
0
-3,553
-1,727
1,419
(308)
2023E
39.8
59.8
301.9
6.0
15.1
24.4
16.3
3.2
3.4
13.1
142
0.6
11.2
14.0
10.8
0.6
40.0
26.0
80.0
1.6
0.4
(INR m)
2023E
12,874
4,715
1,476
-3,476
2,688
18,277
0
18,277
-4,500
13,777
0
0
-4,500
0
-1,000
-1,476
-1,415
0
-3,891
9,886
-308
9,578
25 May 2021
8
 Motilal Oswal Financial Services
The Ramco Cements
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial
products. MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are
available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a
registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and
National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National
Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance
Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report
should be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific
merchant banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the
website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated
from MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability
or use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong
Kong Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers
Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any
brokerage and investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is
intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as
"major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which
this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration
provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange
Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-
dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this
chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL
in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”,
of which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
25 May 2021
9
 Motilal Oswal Financial Services
The Ramco Cements
********************************************************************************************************************************
The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent
of MOFSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in
nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,
representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The
report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as
customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or
distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for
informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing
in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.
The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this
document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this
document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views
expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade
securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of
the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and
should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make
modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from
time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to
perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a
separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of
information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or
may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on,
directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or
entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law,
regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in
all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.
Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost
revenue or lost profits that may arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its
affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such
misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,
expenses that may be suffered by the person
accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263;
Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.
Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.
Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no
assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance
Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
25 May 2021
10