Ramco Cements Shares Plunge 5% on Weak Q3 Results, Brokerages Cut Target

• Ramco Cements shares fell 5% to Rs 1,134.10 after weaker-than-expected December quarter results.
• Average cement prices declined 6% QoQ, exceeding market expectations of a 4% drop, with significant pressure on trade cement prices.
• Net profit rose to Rs 385.6 crore due to a Rs 506 crore exceptional gain from non-core asset sales, despite flat EBITDA and declining operating margins.
• Higher fuel costs, rupee depreciation, and a new mineral bearing land tax in Tamil Nadu increased raw material costs, impacting margins.
• CLSA downgraded the stock to 'Underperform' with a target of Rs 890, citing operational weaknesses, while Jefferies maintained 'Hold' with a target of Rs 1,045, noting debt reduction efforts.