The Ramco Cements
BSE SENSEX
35,697
S&P CNX
10,458
11 March 2020
Update | Sector: Cement
CMP: INR698
TP: INR745 (+7%)
Neutral
Volume growth to be muted, price hike remains key
We met Mr S Vaithiyanathan, CFO of The Ramco Cements Limited (TRCL), for an
update on the company’s business and growth plans. The company remains
focused on growing its presence in core markets of south and east. Key takeaways:
TRCL IN
236
164.4 / 2.3
883 / 684
3/1/-2
289
57.3
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
Demand recovering, but volume growth to be muted at 5-6% in FY21
Financial Snapshot (INR bn)
Y/E Mar
2020E 2021E 2022E
Sales
55.1 61.2 72.3
EBITDA
11.4 12.9 16.0
Adj. PAT
6.1 6.6 8.0
EBITDA Margin (%)
20.7 21.1 22.1
Adj. EPS (INR)
26.0 28.1 34.1
EPS Gr. (%)
19.0 8.0 21.3
BV/Sh. (INR)
212 236 265
Ratios
Net D:E
0.5 0.5 0.3
RoE (%)
13.0 12.6 13.6
RoCE (%)
9.7 9.1 10.5
Payout (%)
13.4 14.5 13.6
Valuations
P/E (x)
31.2 28.9 23.8
P/BV (x)
3.8 3.4 3.1
EV/EBITDA(x)
17.7 15.7 13.1
EV/ton (USD)
143 143 141
Div. Yield (%)
0.4 0.4 0.5
FCF Yield (%)
-5.0 -0.6
5.0
Shareholding pattern (%)
As On
Dec-19 Sep-19 Dec-18
Promoter
42.7
42.7
42.8
DII
25.3
25.0
27.0
FII
11.7
11.7
11.4
Others
20.3
20.6
18.9
FII Includes depository receipts
Stock Performance (1-year)
The Ramco Cement
Sensex - Rebased
Demand trends have been weak in south India over the past few
quarters, particularly in Andhra Pradesh (due to the lack of new
construction awards) where volumes are down by ~5% YoY. Tamil Nadu,
however, has fared better. Demand in AP is likely to remain weak for
another 6-9 months.
Demand has picked up since Dec’19, but TRCL would likely see only 5-6%
volume growth in FY21 due to constraints on clinker capacity. The
company has guided for volume growth of 3-4% YoY in 9MFY21 and a
pick-up thereafter from 4QFY21 once new clinker capacities start to
commission.
In the longer term, TRCL is likely to continue delivering higher volume
growth than the market. It has recorded volume CAGR of 13% over
FY16-20, as against 6% for the market.
Premium products have been doing well with TRCL’s launch of
Supercrete in May’19 being received well across markets. It is targeted
to be used in the manufacture of high-performance concrete and sells at
INR20-25/bag premium.
Prices in TRCL’s operating markets of south and east have been muted in
FY20, particularly with weak prices in AP impacting pricing in adjacent
states.
Prices in south have been trending down for the past 11 months and are
lower by ~INR25/bag (7%) in FY20. Prices in TN are lowest in past five
years.
Prices in east have also been weak and are lower by ~INR30/bag (8%) in
the past 10 months. They are however up 6% QoQ. Hikes undertaken by
industry in east are not sustaining owing to significant capacity addition
there – we expect this to continue as the region is set to see ~25%
capacity expansion over the next two years.
TRCL is expanding its capacity of clinker by 35% (3.75mtpa) and cement
by 24% (4mtpa) to grow its presence in south and east.
These capacities should commission in the next 12 months, with clinker
expansions being back-ended – Jayanthipuram in Dec’19 and Kurnool in
Mar’20. Cement expansions should commission in the next 1-2 months.
TRCL is operating at ~90% clinker utilization, limiting volume growth till
new clinker capacities start. Cement utilization is lower at ~80%.
Prices weak in south and east
890
830
770
710
650
Capacity expansion largely on track
Amit Murarka - Research analyst
(Amit.Murarka@motilaloswal.com) +91 22 7199 2309
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
 Motilal Oswal Financial Services
The Ramco Cements
While management does not have any plan to grow outside its core regions of
south and east, the new plant Kurnool would help TRCL to increase its presence
in North Karnataka and Maharashtra where it sells very limited volume.
Leaverage has been rising, peak debt in 2QFY21
Driven by total capex program of ~INR35b (USD0.5b), TRCL’s net debt has
increased in the past two years to ~INR27b from INR10b in FY18. Net
debt/EBITDA has accordingly increased to 2.3x from 0.9x in FY18.
With ~INR15b capex yet to be incurred, debt is guided to peak at INR34b in
2QFY21, which would imply peak net debt/EBITDA of 2.7x.
We estimate net debt to decline subsequently to ~INR22b in FY22 as cash flows
improve from commissioning of these new projects.
Management envisages to be debt-free in the next three years, i.e. FY23.
Costs to be elevated in FY21, but fall from FY22 led by WHRS
A&P expenses have been elevated in the past 12-15 months with TRCL focusing
on increasing dealer and customer engagements to promote its new brand
launches (Supercrete, etc.)
Management expects these A&P spends to remain high in FY21 as well as it
targets to grow Supercrete to ~20% of trade volumes from 5% currently.
As part of the expansion program, TRCL is also setting up 42 MW of WHRS
capacities which should help lower power cost in FY22. We estimate this to save
~INR30/t of cost in FY22 and ~INR40/t in FY23.
Valuation and view
The stock trades at 14.3x FY21E EV/EBITDA, ~25% premium to its past 10-year
average. On an asset valuation basis, it trades at ~USD125/t, which is also ~20%
premium to its past 10-year average.
We expect return ratios to remain stagnant over the next two years as the capex
program gets completed and ramps up gradually in FY22. We value the stock at
13x Dec’21E EV/EBITDA to arrive at a TP of INR745. Maintain
Neutral.
11 March 2020
2
 Motilal Oswal Financial Services
The Ramco Cements
Capacity expansion to drive volume growth in FY22:
TRCL sells ~75% of its volumes
in south India – a region where volumes have declined in FY20. However, the
company has been gaining market share in the region, driven by new product
launches in niche segments. It is also expanding its clinker capacity by 35% by setting
up two new clinker plants in south (Andhra Pradesh) – 1.5mt at Jayanthipuram and
2.3mt at Kurnool, which should get commissioned by 4QFY21. The new clinker
capacity will also serve the east India market for which TRCL is setting up 3mt
grinding capacities (1mt already commissioned) – this will support market share
gains there as well. For TRCL, we estimate volume CAGR of 10% over FY20-22,
higher than the expected industry growth rate of 6%.
Pricing in south has been weak:
Prices in south India have been on a decline for the
past 11 months and are lower by ~INR25/bag (7%) in FY20. Moreover, demand in
the south remains weak, which could make sustainable pricing gains difficult to
achieve in the region.
Pricing outlook in east not promising as well:
TRCL’s commissioning of new cement
grinding units in east will help it strengthen presence in the region. However, in the
medium term, we see muted pricing gains in the east owing to significant capacity
addition there – nearly 25% expansion over the next two years. Prices in east have
been weak and are lower by ~INR30/bag (8%) in the past 10 months.
Maintain Neutral:
The stock trades at 14.3x FY21E EV/EBITDA, ~25% premium to its
past 10-year average. On an asset valuation basis, it trades at ~USD125/t, which is
also ~20% premium to its past 10-year average. We expect return ratios to remain
stagnant over the next two years as the capex program gets completed and ramps
up gradually in FY22. We value the stock at 13x Dec’21E EV/EBITDA to arrive at a TP
of INR745. Maintain
Neutral.
Exhibit 1:
Revised
forecast
(INR M)
Net Sales
EBITDA
Net Profit
EPS (INR)
Rev
54,783
11,328
6,055
25.7
FY20E
Old
55,146
11,426
6,130
26.0
FY21E
Old
61,158
12,904
6,619
28.1
FY22E
Old
72,325
15,969
8,030
34.1
Capacity expansion to support volumes in longer term; medium-
term outlook muted
Chg (%)
-0.7
-0.9
-1.2
-1.2
Rev
58,568
12,374
6,207
26.3
Chg (%)
-4.2
-4.1
-6.2
-6.2
Rev
69,258
15,578
7,732
32.8
Chg (%)
-4.2
-2.4
-3.7
-3.7
11 March 2020
3
 Motilal Oswal Financial Services
The Ramco Cements
Story in Charts
Exhibit 2:
Expect volume CAGR of 10% over FY20-22
Dispatch (mt)
16
12
3
7.7
-6
7.2
FY15
FY16
8.3
FY17
9.3
FY18
11.1
11.6
12.3
14.2
4
6
Growth (YoY %)
20
15
Exhibit 3:
EBITDA/ton trend (INR/t)
-11
8.6
FY14
FY19 FY20E FY21E FY22E
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 4:
Net debt has increased due to high capex
Net debt (INR b)
5.0
2.9
2.4
3.5
1.9
1.1
0.9
1.5
2.2
2.3
1.4
Net Debt/EBITDA(x)
Exhibit 5:
Trend in RoE and RoCE
32.0
24.0
16.0
8.0
RoE (%)
RoCE (%)
27
23
26
23
20
13
10
15
25
28
22
0.0
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 6:
TRCL – EV/EBITDA trend
Ramco EV/EBDITA(x)
25.0
20.0
15.0
10.0
5.0
0.0
Peak(x)
Avg(x)
Min(x)
Exhibit 7:
TRCL – EV/ton trend
EV/ton (US$)
200
150
100
50
0
Max
Avg
Min
Source: MOFSL, Company
Source: MOFSL, Company
11 March 2020
4
 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 (%)
2015
35,939
-1.1
6,622
18.4
2,499
4,123
1,938
1,379
3,564
0
3,564
88
1,053
32.0
2,424
2,424
111.3
6.7
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
1,894
110
28.1
5,122
5,152
-8.7
10.1
2019
236
44,366
44,601
8,704
16,187
69,493
85,537
34,107
51,431
8,308
4,294
17,049
5,597
4,900
928
5,625
11,590
11,180
410
5,460
69,492
2020E
54,783
7.0
11,328
20.7
3,136
8,192
707
588
8,073
0
8,073
2,018
0
25.0
6,055
6,055
17.5
11.1
2020E
236
49,599
49,834
8,704
26,687
85,226
98,937
37,243
61,694
14,058
3,294
18,573
5,986
5,240
1,330
6,017
12,394
11,957
437
6,179
85,225
2021E
58,568
6.9
12,374
21.1
3,722
8,653
995
619
8,276
0
8,276
2,069
0
25.0
6,207
6,207
2.5
10.6
2021E
236
54,848
55,083
8,704
30,187
93,975
107,837
40,964
66,873
17,248
3,294
19,978
6,400
5,603
1,544
6,432
13,419
12,783
635
6,560
93,973
(INR M)
2022E
69,258
18.3
15,578
22.5
4,197
11,381
1,347
704
10,738
0
10,738
3,007
0
28.0
7,732
7,732
24.6
11.2
(INR M)
2022E
236
61,484
61,720
8,704
23,687
94,111
125,337
45,162
80,175
3,013
3,294
23,668
7,568
6,625
1,869
7,606
16,040
15,117
923
7,628
94,110
Balance Sheet
Y/E March
2015
Equity Share Capital
238
Total Reserves
26,214
Net Worth
26,452
Deferred Liabilities
8,271
Total Loans
27,119
Capital Employed
61,841
Gross Block
72,350
Less: Accum. Deprn.
23,920
Net Fixed Assets
48,429
Capital WIP
2,575
Total Investments
3,558
Curr. Assets, Loans&Adv.
15,763
Inventory
5,206
Account Receivables
3,802
Cash and Bank Balance
618
Loans and Advances
6,136
Curr. Liability & Prov.
8,861
Account Payables
7,238
Provisions
1,623
Net Current Assets
6,901
Appl. of Funds
61,841
E: MOFSL Estimates; * Adjusted for treasury stocks
11 March 2020
5
 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)
Working Capital Turnover (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
2015
10.2
20.7
111.1
1.5
17.8
2016
21.8
34.6
129.9
3.0
15.9
2017
27.2
39.1
157.1
3.0
10.9
2018
24.0
36.4
171.6
3.0
12.7
29.8
19.7
4.2
4.0
16.6
144
0.4
5.1
9.5
7.0
0.6
52.9
34
74
64
1.8
1.0
2015
3,564
2,723
1,847
-687
2,126
9,573
-13
9,561
-4,386
5,175
7
-438
-4,817
0
-1,984
-2,310
-279
0
-4,573
171
447
618
10.7
18.1
12.6
0.6
56.4
42
95
43
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
12.8
18.9
14.0
0.7
53.5
45
99
30
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
10.7
14.5
11.7
0.7
46.6
36
93
14
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
21.9
34.5
189.3
3.0
16.6
32.7
20.7
3.8
3.4
17.3
143
0.4
9.5
12.1
9.8
0.7
39.9
35
80
32
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
2020E
25.7
39.0
211.5
3.0
13.6
27.8
18.3
3.4
3.3
15.8
124
0.4
10.0
12.8
9.6
0.6
39.9
35
80
32
1.5
0.5
2020E
8,073
3,136
707
-2,018
-317
9,581
0
9,581
-19,150
-9,569
1,000
0
-18,150
0
10,500
-707
-821
0
8,971
402
927
1330
2021E
26.3
42.1
233.8
3.5
15.4
27.1
17.0
3.1
3.1
14.5
124
0.5
9.4
11.8
8.6
0.6
39.9
35
80
31
1.5
0.5
2021E
8,276
3,722
995
-2,069
-166
10,758
0
10,758
-12,090
-1,332
0
0
-12,090
0
3,500
-995
-958
0
1,547
214
1,330
1,544
2022E
32.8
50.6
262.0
4.0
14.2
21.8
14.1
2.7
2.7
12.0
123
0.6
10.4
13.2
10.2
0.7
39.9
35
80
30
1.5
0.4
(INR M)
2022E
10,738
4,197
1,347
-3,007
-743
12,532
0
12,532
-3,265
9,267
0
0
-3,265
0
-6,500
-1,347
-1,095
0
-8,942
325
1,544
1,869
11 March 2020
6
 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
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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
11 March 2020
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 Motilal Oswal Financial Services
The Ramco Cements
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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.
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