Ramco Cements, ACC jump 5-7% after Deutsche Bank raises price targets on strong south biz

Ramco Cements rallied 7 percent and ACC gained 5 percent intraday Wednesday after global investment firm Deutsche Bank raised price targets on likely strong growth in South India cement business.

“Margin cycle is turning favourable in south. Hence, Ramco is the preferred play on South India followed by ACC,” the brokerage said.

Ramco gets 70 percent of its volumes in South.

Deutsche upgraded its rating on Ramco Cements to buy and raised price target to Rs 750 from Rs 630 earlier as it estimates at 32 percent EPS CAGR in FY19-21 driven by 11 percent CAGR in volumes.

related news Indiabulls Housing Finance declines after Macquarie cuts price target by 29% D-Street Buzz: Nifty Infra in green led by IRB Infra; UltraTech jumps 2%, Zee Entertainment drags

The research house also likes ACC on supportive valuations and expects at 22 percent EPS CAGR in CY18-20. The company gets 20 percent of its sales in south.

It also likes Dalmia Bharat for its strong exposure to South.

Deutsche Bank increased its price target for ACC to Rs 1,760 from Rs 1,710 and for Dalmia Bharat raised to Rs 1,310 from Rs 1,305 apiece.

At 12:28 hours IST, Ramco Cements was up 5.17 percent at Rs 682.25 and ACC gained 3.44 percent at Rs 1,431.80, but Dalmia Bharat was flat at Rs 2,438.05 on the BSE.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.
First Published on Feb 27, 2019 12:57 pm

Leave a Reply

Your email address will not be published. Required fields are marked *