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RAMC

Ramco CementsNSEI:RAMCOCEM Stock Report

Last Price

₹940.40

Market Cap

₹222.2b

7D

-7.1%

1Y

16.2%

Updated

22 Jan, 2022

Data

Company Financials +
RAMCOCEM fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance5/6
Financial Health2/6
Dividends4/6

RAMCOCEM Stock Overview

The Ramco Cements Limited manufactures and sells cement, ready mix concrete, and dry mortar products in India.

Ramco Cements Competitors

UltraTech Cement

NSEI:ULTRACEMCO

₹2.1t

Shree Cement

NSEI:SHREECEM

₹903.4b

Ambuja Cements

BSE:500425

₹731.5b

ACC

NSEI:ACC

₹416.1b

Price History & Performance

Summary of all time highs, changes and price drops for Ramco Cements
Historical stock prices
Current Share Price₹940.40
52 Week High₹1,132.70
52 Week Low₹766.05
Beta0.57
1 Month Change-5.77%
3 Month Change-2.44%
1 Year Change16.20%
3 Year Change62.35%
5 Year Change41.92%
Change since IPO157.64%

Recent News & Updates

Dec 27
Should You Be Adding Ramco Cements (NSE:RAMCOCEM) To Your Watchlist Today?

Should You Be Adding Ramco Cements (NSE:RAMCOCEM) To Your Watchlist Today?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Nov 20
Here's What's Concerning About Ramco Cements' (NSE:RAMCOCEM) Returns On Capital

Here's What's Concerning About Ramco Cements' (NSE:RAMCOCEM) Returns On Capital

There are a few key trends to look for if we want to identify the next multi-bagger. Firstly, we'd want to identify a...

Oct 21
Estimating The Intrinsic Value Of The Ramco Cements Limited (NSE:RAMCOCEM)

Estimating The Intrinsic Value Of The Ramco Cements Limited (NSE:RAMCOCEM)

How far off is The Ramco Cements Limited ( NSE:RAMCOCEM ) from its intrinsic value? Using the most recent financial...

Sep 16
Is Ramco Cements (NSE:RAMCOCEM) A Risky Investment?

Is Ramco Cements (NSE:RAMCOCEM) A Risky Investment?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Aug 17
Ramco Cements (NSE:RAMCOCEM) Has Some Way To Go To Become A Multi-Bagger

Ramco Cements (NSE:RAMCOCEM) Has Some Way To Go To Become A Multi-Bagger

There are a few key trends to look for if we want to identify the next multi-bagger. Ideally, a business will show two...

Shareholder Returns

RAMCOCEMIN Basic MaterialsIN Market
7D-7.1%-4.9%-3.4%
1Y16.2%39.8%32.6%

Return vs Industry: RAMCOCEM underperformed the Indian Basic Materials industry which returned 39.8% over the past year.

Return vs Market: RAMCOCEM underperformed the Indian Market which returned 32.6% over the past year.

Price Volatility

Is RAMCOCEM's price volatile compared to industry and market?
RAMCOCEM volatility
RAMCOCEM Average Weekly Movement4.3%
Basic Materials Industry Average Movement5.5%
Market Average Movement6.8%
10% most volatile stocks in IN Market9.9%
10% least volatile stocks in IN Market4.0%

Stable Share Price: RAMCOCEM is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: RAMCOCEM's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19573,374Arrakundal Velayutha Dharmakrishnanhttps://www.ramcocements.in

The Ramco Cements Limited manufactures and sells cement, ready mix concrete, and dry mortar products in India. It offers Portland Pozzolana, Portland Slag, ordinary Portland cement, sulphate resisting, sleeper grade, and rapid hardening Portland cement under the RAMCO brand. The company is also involved in the generation and sale of electricity from wind mills and thermal power plants.

Ramco Cements Fundamentals Summary

How do Ramco Cements's earnings and revenue compare to its market cap?
RAMCOCEM fundamental statistics
Market Cap₹222.21b
Earnings (TTM)₹11.10b
Revenue (TTM)₹57.15b

20.0x

P/E Ratio

3.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RAMCOCEM income statement (TTM)
Revenue₹57.15b
Cost of Revenue₹19.34b
Gross Profit₹37.81b
Expenses₹26.71b
Earnings₹11.10b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 24, 2022

Earnings per share (EPS)46.98
Gross Margin66.15%
Net Profit Margin19.42%
Debt/Equity Ratio55.4%

How did RAMCOCEM perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

6%

Payout Ratio

Valuation

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

11.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RAMCOCEM (₹940.4) is trading below our estimate of fair value (₹1061.15)

Significantly Below Fair Value: RAMCOCEM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RAMCOCEM is poor value based on its PE Ratio (20x) compared to the Indian Basic Materials industry average (18.1x).

PE vs Market: RAMCOCEM is good value based on its PE Ratio (20x) compared to the Indian market (23x).


Price to Earnings Growth Ratio

PEG Ratio: RAMCOCEM is poor value based on its PEG Ratio (2.9x)


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 (1.6x).


Future Growth

How is Ramco Cements forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAMCOCEM's forecast earnings growth (6.9% per year) is above the savings rate (6.7%).

Earnings vs Market: RAMCOCEM's earnings (6.9% per year) are forecast to grow slower than the Indian market (21.2% per year).

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

Revenue vs Market: RAMCOCEM's revenue (14.8% per year) is forecast to grow faster than the Indian market (12.7% per year).

High Growth Revenue: RAMCOCEM's revenue (14.8% 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 (15%).


Past Performance

How has Ramco Cements performed over the past 5 years?

10.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAMCOCEM has high quality earnings.

Growing Profit Margin: RAMCOCEM's current net profit margins (19.4%) are higher than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: RAMCOCEM's earnings have grown by 10.6% per year over the past 5 years.

Accelerating Growth: RAMCOCEM's earnings growth over the past year (85.5%) exceeds its 5-year average (10.6% per year).

Earnings vs Industry: RAMCOCEM earnings growth over the past year (85.5%) exceeded the Basic Materials industry 79.9%.


Return on Equity

High ROE: RAMCOCEM's Return on Equity (17.3%) is considered low.


Financial Health

How is Ramco Cements's financial position?


Financial Position Analysis

Short Term Liabilities: RAMCOCEM's short term assets (₹15.2B) do not cover its short term liabilities (₹27.6B).

Long Term Liabilities: RAMCOCEM's short term assets (₹15.2B) do not cover its long term liabilities (₹30.5B).


Debt to Equity History and Analysis

Debt Level: RAMCOCEM's net debt to equity ratio (54.2%) is considered high.

Reducing Debt: RAMCOCEM's debt to equity ratio has increased from 53.2% to 55.4% over the past 5 years.

Debt Coverage: RAMCOCEM's debt is well covered by operating cash flow (42.8%).

Interest Coverage: RAMCOCEM's interest payments on its debt are well covered by EBIT (18.6x coverage).


Balance Sheet


Dividend

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

0.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RAMCOCEM's dividend (0.32%) is higher than the bottom 25% of dividend payers in the Indian market (0.3%).

High Dividend: RAMCOCEM's dividend (0.32%) is low compared to the top 25% of dividend payers in the Indian market (1.34%).


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 increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (6.2%), 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 (9.4% payout ratio).


Next Steps

Management

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

7.2yrs

Average management tenure


CEO

Arrakundal Velayutha Dharmakrishnan (64 yo)

9.75yrs

Tenure

₹284,457,768

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 ($USD3.83M) is above average for companies of similar size in the Indian market ($USD557.06K).

Compensation vs Earnings: Arrakundal Velayutha's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: RAMCOCEM's management team is seasoned and experienced (7.2 years average tenure).


Board Members

Experienced Board: RAMCOCEM's board of directors are considered experienced (8.3 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 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
  • Implied Market Cap: ₹222.209b
  • Shares outstanding: 236.29m
  • Website: https://www.ramcocements.in

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/22 12:05
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.