Ramco Cements has given robust returns to investors in the last five years. The stock which traded around Rs 345 in 2014, has risen 132 percent to trade around Rs 800, currently.

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To put in perspective, a Rs 1 lakh invested in the stock in 2014 would have doubled in value and turned to Rs 2.32 lakh today.

The scrip has risen 26 percent in the last 1 year and 25 percent in 2019, when the stock markets were in their bear phase. It hit its 52-week high of Rs 845 on May 27, 2019, and a 52-week low of Rs 553 on January 29, 2019.

In September quarter, the company's standalone profit jumped 68 percent, beating analysts' estimates to Rs 168.15 crore. It had recorded a profit of Rs 114.47 crore in the year-ago quarter. Total cement sales volume for the quarter ending September 30, 2019, was at 27.24 lakh tonnes as against 24.69 lakh tonnes registered year-ago period.

Meanwhile, for the six-month period ending September 30, the profit of the company grew by 50.3 percent to Rs 360.12 crore from Rs 239.45 crore registered the same period a year ago.

Post their Q2 results, CLSA raised its target price of the stock to Rs 1,050 from Rs 970 while retaining a 'buy' recommendation in the long term.

The brokerage also raised its earnings estimates due to better-than-expected results. It said the company remains its preferred pick due to its focus on growth and cost optimisation, although weak cement prices in south and east India are near term concerns.

According to an ICICI Direct report, the cement industry growth during Q2FY20 remained muted, however, Ramco Cements surprised positively with double-digit growth. The brokerage expects the company to maintain double-digit volume growth going ahead in FY19-21, on the back of ramping up of additional capacities in the demand dense markets of east India.

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First Published:Nov 4, 2019 2:14 PM IST