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Investing.com - Axis Capital has upgraded Ramco Cements Ltd (NS:TRCL) stock rating from Sell to Reduce while raising its price target to INR975.00 from INR950.00.
The upgrade follows approximately 10% decline in the cement manufacturer’s stock price after its Q1FY26 results, according to Axis Capital’s research note.
Axis Capital highlighted Ramco Cements’ dual objectives outlined in its FY25 annual report: reducing net debt and expanding capacity to 30 mtpa through debottlenecking with minimal capital expenditure.
The firm noted that Ramco’s net debt decreased by Rs 3.4 billion year-over-year to Rs 44.1 billion in FY25, supported by Rs 4.6 billion from non-core asset sales, though it cautioned that deleveraging potential in FY26 is limited by Rs 5.2 billion in outstanding liabilities to banks from receivables factoring.
Axis Capital trimmed its FY26-28E profit after tax estimates by 2-3% but raised its target price by 3% due to valuation roll-forward, noting the stock currently trades at 14.3x FY27E EV/EBITDA, approximately 12% below its 10-year average.
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