After sliding about 16% from its July 2025 highs, Ramco Cements appears to have stabilised — prompting some analysts and traders to call it a “contra-buy.”
📉 What’s Happening
- The stock has reportedly found support around its long-term moving averages (near the 200-day moving average), suggesting that the downtrend may be pausing.
- Technical analysis indicates that Ramco could rebound. Experts suggest a possible bounce back to around ₹1,030 — with a potential upside target of ₹1,110 over the next 3–4 weeks for short-term traders.
- Suggested entry range by some analysts is ₹1,020–₹1,030, with a stop-loss around ₹975, reflecting a moderately high-risk, short-term trading strategy.
⚠️ Underlying Weakness & Cautions
- The company’s recent financial performance has been mixed: while there was a sharp profit surge in Q2 FY26, other quarters have seen muted volume growth and pricing pressure.
- Some analysts remain cautious — for example, in November 2025, Motilal Oswal assigned a “Neutral” rating on the stock with a target of ₹1,060.
- Furthermore, concerns around overvaluation relative to fundamentals have been raised: certain metrics (e.g. P/E ratio, EV/EBITDA) suggest the stock might be expensive compared with peers.
🧑💼 Who Might Consider This — And Who May Want to Wait
- Short-term traders or high-risk investors: Given the technical setup, bounce-back potential, and exit-stop defined, this could be an opportunity for a quick trade.
- Investors seeking long-term stability or value: Given volatility in volumes, pressures on margins, and mixed earnings history — the stock remains risky; a longer-term investment would need caution and close monitoring of sector / demand cycles.
