Hindalco, Ramco Cements, Sagility India Share Price Highlights November 12, 2024: Ramco Cements stock closes 5% higher, Sagility stock declines 6% on day one of listing

Ramco Cements stock closed 4.52% higher on the NSE at ₹909.80, after hitting the day’s high at ₹927.

Sagility India shares fell below ₹30 level. 

The stock closed 6.31% lower on the NSE at ₹29.10.

Ambuja Cements stock slipped 0.80% on the NSE to ₹555.90.

ONGC shares closed flat on the NSE at ₹255.90.

Hindalco shares closed at ₹649.45 on the NSE on Tuesday, down by 0.90%.

Fitch Ratings has affirmed UltraTech Cement Limited’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at ‘BBB-’. The Outlook is Stable. Fitch has also affirmed UltraTech’s USD400 million 2.80% senior unsecured notes due 2031 at ‘BBB-’.

Shares trade flat on the NSE at ₹10,912.

The Ramco Cements: We maintain an ADD rating on The Ramco Cements(TRCL) with an unchanged TP of INR 860/share (12x Sep-26E EBITDA). InQ2FY25, Revenue fell 13% YoY on 3/10% fall in volume/ realisation. NSR fell5% QoQ on weak pricing across markets. Opex reduced 8/5% YoY/QoQ asinput, freight and fixed costs cooled off. Thus, the unit EBITDA slid was amodest INR 40 per MT to INR 695 per MT (down INR 270 per MT YoY). TRCLexpects to cross 30mn MT of cement capacity by FY26-end. It is expanding itssouth plant capacities by another 4mn MT and is also expecting tocommission the Karnataka plant by FY27-end (our estimate is 3mn MT). Weestimate a cumulative Capex of INR 50bn during FY25-27E. Thus, despitefactoring in ~INR 10bn in non-core asset monetization, net debt to EBITDAwould gradually moderate to 2.4x in FY27E. 

Hindalco Industries Limited, an Aditya Birla Group company, has reported that its net profit in the September quarter was up 78 per cent at ₹3,909 crore against ₹2,196 crore logged in the same period last year, largely due to lower cost and higher realisation.

Revenue of the company increased seven per cent to ₹58,203 crore ( ₹54,169 crore). Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) jumped 49 per cent to ₹9,100 crore ( ₹6,096 crore).

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Hindalco shares trade flat on the NSE at ₹655.30 as at 2 pm.

Uncertain production targets; decline in realisation; ‘no-win zone’ 

Weak global oil demand (particularly China) and a rise in non-OPEC production has forced a plunge in Brent prices below the USD75/bbl threshold. With unlimited downside sub-USD75/bbl for oil and USD67.5/bbl for gas, we opine ONGC’s earnings are severely vulnerable to cuts. In contrast, only 18% of Street has a bearish view, indicating excessive exuberance. We are cutting EPS by 5%/6% for FY25E/26E; reiterate ‘REDUCE’ with a TP of INR232.

​​Ramco Cements: ​​Analysts offered mixed reviews; Jefferies issued an underperform rating with a target price reduction from ₹690 to ₹680, while Motilal Oswal maintained a neutral stance with a target of ₹880

​​Here is what brokerages say​​

Madhu Balaji of businessline writes

Shares of Sagility India declined 2.45% on the NSE to ₹30.30 as at 1.16 pm.

Jefferies on Ramco Cem: Maintain Underperform on Company, target price at Rs 680/Sh (Neutral) 

We maintain BUY (revised TP of INR 325) given our expectation that OPEC+ will continue to support crude ~USD 75-80/bbl, and the government allowing ONGC/Oil India to make net crude realisation of ~USD 75/bbl. Further, ONGC is likely to see 10-15% output growth with ramp-up of output from KG DW 98/2 block. ONGC is also a robust dividend play (4-6%). At CMP, it trades at 5.0x FY27E consolidated EPS and 0.7x FY27E BV.

CLSA on Hindalco

• Buy, TP Rs 800
• Reported robust domestic results.
• It reported Ebitda of Rs43bn (+17% QoQ), 35% above est. with better performance across segments.
• Aluminium Ebitda/t rose US$96 QoQ to US$1,419 despite US$140/t lower LME

U-P, TP cut to Rs 680

Believe slew of cap adds/rampups & aggressive M&A/volume push in South in tepid environment will keep regional pricing/profitability under pressure

ONGC shares gained 1.40% on the NSE to ₹260.50 as at 11.23 am.

Ramco Cements stock climbed 3.68% on the NSE to ₹902.50 as at 11.21 am.

Sagility India stock traded at ₹31.60 on the NSE, inched up from the listing price of ₹31.06.

Swiggy IPO will list on bourses tomorrow. The 11,300-crore IPO was oversubscribed by 3.59 times after a tepid response in the first two days. Swiggy IPO price band has been set at ₹371-390 per share.

Hindalco shares inched up 0.69% on the NSE to ₹659.90 as at 11.08 am.

Britannia stock declined 3.39% on the NSE to ₹5,250.15. Company reported a 9.6 per cent decline in consolidated profit after tax, totalling ₹531.45 crore for the quarter ending September 30, down from ₹587.59 crore in the same period last year. 

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KS Badri Narayanan of businessline writes

Sagility India made a decent debut on the stock market, listing at Rs. 31.06 per share, a 3.53% gain over its issue price of Rs. 30. While the IPO received a moderate subscription of 3.2 times, the listing performance is considered positive given the company’s specific focus on the U.S. healthcare market, which is subject to various regulatory and economic factors.

However, investors should remain cautious. The company’s reliance on a single market and the potential impact of U.S. policy changes could pose risks. Additionally, the high valuation and the nature of the IPO as a complete offer for sale (OFS) may limit upside potential.

Investors who participated in the IPO may consider holding their shares by keeping a stoploss around 28, but closely monitoring the company’s performance and market dynamics is crucial.

Ramco Cements stock gained 5.93% on the NSE to ₹922.10, despite 64.2% decline in its consolidated net profit to ₹25.77 crore for the second quarter ended September 2024.

Company has raised ₹376 crore over the past two months from the sale of non-core assets and is set to raise an additional ₹74 crore through further asset monetisation.

Ambuja Cements sought approval from the Competition Commission of India (CCI) to acquire a majority stake in CK Birla group firm Orient Cement Ltd in a Rs 8,100-crore deal.

Shares trade flat on the NSE at ₹562 as at 10.20 am.

Sagility India IPO lists at ₹31.06 on the NSE and BSE, against the offer price of ₹30. The 2,160.60 crore IPO received 3.20 times subscription. ICICI Securities, IIFL Securities, Jefferies India, and JP Morgan India were the book-running lead managers to the issue.

Hindalco shares trade flat at ₹660.30 on the NSE. Company recorded a 78% rise in consolidated net profit to Rs 3,909 crore in the September 2024 quarter