The Indian benchmark indices Nifty and Sensex have been volatile for the past few days, amidst the ongoing corporate earnings season and mixed global cues. The broader market has witnessed stock specific action, with good quality stocks seeing strong buying interest from investors. Meanwhile, one such stock is Ramco Cements, which has jumped 7% on Friday post its Q4 earnings release.
In its latest Q4 result for the financial year 2022-23, the company reported 22.5% YoY jump in net profits to Rs 152 crore from Rs 124 crore in the same quarter of previous fiscal. The company’s sales of product grew by 50.7% to Rs 2,559 crore from Rs 1,698 crore of March 2022.
According to the reports, higher profitability was primarily driven by good volume gains and strong domestic demand for cement on the back of uptick infrastructure project undertakings that offset weaker prices in South India.
Interestingly, the board of directors has recommended a dividend of Rs 2 per share on the face value of Re 1 each for FY23, subjected to approval of shareholders.
“Transportation cost by rail has increased by 15 % due to re-imposition of busy season surcharge and increase in diesel price by 3 % during FY23, which pushed up the inbound and outbound logistics cost,” it was said in a statement, adding that it expects improvement in margins from Q2 in FY24 onwards.
Technically, the stock has registered a technical breakout from its 35-week cup pattern, which is deemed positive for medium-long term. The volumes have been above average and suggest strong buying interest. On YTD basis, the stock of RAMCOCEM is up 20%.
On Friday, the shares of RAMCOCEM rose over 7% to hit the intraday high of Rs 841.45 on the exchanges. Over 59 lakh shares have been traded on Friday which is the highest since a long time.