KR Choksey has increased the target price for The Ramco Cements to INR 985 from INR 866, while maintaining an "ACCUMULATE" rating.
The company's EBITDA for the latest quarter declined by 22.6% year-on-year to INR 3,141 million, with a margin of 15.4%.
Despite this decline, the profit after tax (PAT) of INR 257 million exceeded expectations, although it represented a 64.3% decrease year-on-year.
The firm has adjusted its FY26E EBITDA forecast to INR 19,555 million, reflecting stronger-than-anticipated earnings in Q2FY25.
The increase in the valuation multiple to 14.5x FY26E EV/EBITDA is attributed to confidence in Ramco Cements' expansion plans, expected to be completed by FY26E.
Analysts anticipate a rebound in demand driven by infrastructure projects and improving cement prices in the upcoming quarters.