NSEI:RAMCOCEM

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

The Ramco Cements Limited manufactures and sells cement and cementious materials in India. More Details


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Ramco Cements's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RAMCOCEM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.9%

RAMCOCEM

1.5%

IN Basic Materials

0.05%

IN Market


1 Year Return

-1.5%

RAMCOCEM

-3.0%

IN Basic Materials

0.9%

IN Market

Return vs Industry: RAMCOCEM exceeded the Indian Basic Materials industry which returned -6.7% over the past year.

Return vs Market: RAMCOCEM matched the Indian Market which returned -1.6% over the past year.


Shareholder returns

RAMCOCEMIndustryMarket
7 Day2.9%1.5%0.05%
30 Day2.9%-2.9%-2.8%
90 Day16.6%2.2%9.8%
1 Year-1.1%-1.5%-2.4%-3.0%2.8%0.9%
3 Year8.3%7.0%-9.7%-11.3%4.1%-0.9%
5 Year125.5%120.2%30.4%26.6%38.9%28.6%

Price Volatility Vs. Market

How volatile is Ramco Cements's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ramco Cements undervalued compared to its fair value and its price relative to the market?

28.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RAMCOCEM (₹740.75) is trading below our estimate of fair value (₹1037.77)

Significantly Below Fair Value: RAMCOCEM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RAMCOCEM is poor value based on its PE Ratio (32.7x) compared to the IN Basic Materials industry average (19.2x).

PE vs Market: RAMCOCEM is poor value based on its PE Ratio (32.7x) compared to the Indian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: RAMCOCEM is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: RAMCOCEM is overvalued based on its PB Ratio (3.5x) compared to the IN Basic Materials industry average (0.9x).


Next Steps

Future Growth

How is Ramco Cements forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAMCOCEM's forecast earnings growth (11.7% per year) is above the savings rate (7.2%).

Earnings vs Market: RAMCOCEM's earnings (11.7% per year) are forecast to grow slower than the Indian market (26.4% per year).

High Growth Earnings: RAMCOCEM's earnings are forecast to grow, but not significantly.

Revenue vs Market: RAMCOCEM's revenue (12% per year) is forecast to grow faster than the Indian market (11.8% per year).

High Growth Revenue: RAMCOCEM's revenue (12% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RAMCOCEM's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

How has Ramco Cements performed over the past 5 years?

7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAMCOCEM has high quality earnings.

Growing Profit Margin: RAMCOCEM's current net profit margins (10.4%) are lower than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: RAMCOCEM's earnings have grown by 7.3% per year over the past 5 years.

Accelerating Growth: RAMCOCEM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RAMCOCEM had negative earnings growth (-8.7%) over the past year, making it difficult to compare to the Basic Materials industry average (-4.6%).


Return on Equity

High ROE: RAMCOCEM's Return on Equity (10.5%) is considered low.


Next Steps

Financial Health

How is Ramco Cements's financial position?


Financial Position Analysis

Short Term Liabilities: RAMCOCEM's short term assets (₹15.8B) do not cover its short term liabilities (₹23.4B).

Long Term Liabilities: RAMCOCEM's short term assets (₹15.8B) do not cover its long term liabilities (₹27.9B).


Debt to Equity History and Analysis

Debt Level: RAMCOCEM's debt to equity ratio (61.1%) is considered high.

Reducing Debt: RAMCOCEM's debt to equity ratio has reduced from 103.9% to 61.1% over the past 5 years.

Debt Coverage: RAMCOCEM's debt is well covered by operating cash flow (24.5%).

Interest Coverage: RAMCOCEM's interest payments on its debt are well covered by EBIT (10.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Ramco Cements's current dividend yield, its reliability and sustainability?

0.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RAMCOCEM's dividend (0.34%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.58%).

High Dividend: RAMCOCEM's dividend (0.34%) is low compared to the top 25% of dividend payers in the Indian market (2.33%).


Stability and Growth of Payments

Stable Dividend: RAMCOCEM's dividend payments have been volatile in the past 10 years.

Growing Dividend: RAMCOCEM's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11%), RAMCOCEM's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RAMCOCEM's dividends in 3 years are forecast to be thoroughly covered by earnings (11.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Arrakundal Velayutha Dharmakrishnan (63 yo)

8.42yrs

Tenure

₹143,794,481

Compensation

Shri Arrakundal Velayutha Raja Dharmakrishnan, B.Com, ACA has been Chief Executive Officer at Madras Cements Ltd., since April 1, 2012 and served as its Executive Director of Finance. Shri Dharmakrishnan s ...


CEO Compensation Analysis

Compensation vs Market: Arrakundal Velayutha's total compensation ($USD1.95M) is above average for companies of similar size in the Indian market ($USD600.66K).

Compensation vs Earnings: Arrakundal Velayutha's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Poosapadi Ramasubrahmaneya Venketrama Raja
Chairman & MD3.25yrs₹410.11m0.83%
₹ 1.4b
Arrakundal Velayutha Dharmakrishnan
Chief Executive Officer8.42yrs₹143.79m0.076%
₹ 127.7m
S. Vaithiyanathan
Chief Financial Officerno data₹15.36m0.0028%
₹ 4.7m
Raghuram Devarakonda
Chief Operating Officer3.17yrs₹20.41mno data
K. Selvanayagam
Compliance Officer & Company Secretaryno data₹11.38m0.0021%
₹ 3.4m
Balaji Moorthy
Executive President of Marketingno data₹27.38m0.0021%
₹ 3.4m
R. Ramakrishnan
President of Marketingno data₹13.79mno data
M. Saikumar
Senior Vice President of HRDno data₹11.05mno data
Ravi Natarajan
President of Manufacturing15.08yrs₹16.16mno data
Prabhu Nambiappan
Senior Vice President of HR Ramco Groupno data₹11.43mno data
Srinivasan Muthusubramanian
Executive Director of Operations1.42yrs₹27.52m0.0085%
₹ 14.2m
M. Chidambaram
Senior Vice President of Administrationno datano datano data

3.3yrs

Average Tenure

61yo

Average Age

Experienced Management: RAMCOCEM's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Poosapadi Ramasubrahmaneya Venketrama Raja
Chairman & MD3.25yrs₹410.11m0.83%
₹ 1.4b
Muthiah Venkatachalam
Non Executive Independent Director6.92yrs₹1.13mno data
Radhey Agarwal
Non Executive Independent Director14.17yrs₹975.00kno data
M. Krishnan
Independent Director1yr₹300.00kno data
Mandavilli Bhaskara Rao
Non-Executive Independent Director11.08yrs₹900.00kno data
Chitra Venkataraman
Independent Director5.5yrs₹675.00kno data
Farooqui Mohammed
Independent Director3.08yrs₹450.00kno data

5.5yrs

Average Tenure

66yo

Average Age

Experienced Board: RAMCOCEM's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Ramco Cements Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Ramco Cements Limited
  • Ticker: RAMCOCEM
  • Exchange: NSEI
  • Founded: 1957
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: ₹167.264b
  • Shares outstanding: 235.80m
  • Website: https://www.ramcocements.in

Location

  • The Ramco Cements Limited
  • Auras Corporate Centre
  • V Floor
  • Chennai
  • Tamil Nadu
  • 600004
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500260BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 1997
RAMCOCEMNSEI (National Stock Exchange of India)YesEquity SharesININRApr 1997

Biography

The Ramco Cements Limited manufactures and sells cement and cementious materials in India. It offers Portland Pozzolana, OPC, sulphate resisting, sleeper grade, and rapid hardening Portland cement, as well ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/28 12:41
End of Day Share Price2020/09/28 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.