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Check Before You Invest : Ramco Industries Ltd

BSE: 532369 NSE: RAMCOIND ISIN: INE614A01028
  |   Sector:  Construction & Infrastructure   |   Industry:  Cement & Construction Materials

Snapshot

Q.1 Which industry/sub-sector does Ramco Industries Ltd belong to?
Ramco Industries Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Cement & Construction Materials segment.
Q.2 Is Ramco Industries Ltd a good quality company?
Ramco Industries Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Ramco Industries Ltd undervalued or overvalued?
Ramco Industries Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Ramco Industries Ltd a good buy now?
Ramco Industries Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Ramco Industries Ltd?
Ramco Industries Ltd revenue growth is 6.8% for FY-2025 , which is below its 5 year CAGR of 10.9% , indicating slower growth.
Q.2 Gross Profit margin of Ramco Industries Ltd?
Ramco Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.6% for FY-2025 , which is in line with its 5 year median of 10.6% , indicating stable margins.
Q.3 Operating Profit Margin of Ramco Industries Ltd?
Ramco Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.13% for FY-2025 , which is below its 5 year median of 9.39% indicating decreasing margins.
Q.4 Net Profit Margin of Ramco Industries Ltd?
Ramco Industries Ltd Net Profit Margin is 6.37% for FY-2025 , is below with its 5 year median of 7.43%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 10.6 10.6
Operating Profit Margin 8.13 9.39
Net Profit Margin 6.37 7.43
Q.5 Return on Asset of Ramco Industries Ltd?
Ramco Industries Ltd Return on Asset is 5.13%, which is below its 5 year historical median of 6.16%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Ramco Industries Ltd?
Ramco Industries Ltd Return on equity is 7.27% for FY-2025 , which is below its historical median of 9.22%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Ramco Industries Ltd?
Ramco Industries Ltd Return on capital employed is 9.03% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Ramco Industries Ltd?
Ramco Industries Ltd Cash conversion cycle is 153 days, above its historical median of 145 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.81 0.81
ROE 7.27 9.22
ROCE 9.03 9.31
Cash Conversion Cycle 153 days 145 days
Q.9 Debt to Equity ratio of Ramco Industries Ltd?
Ramco Industries Ltd Debt-to-Equity ratio is 0.20 , which is lower with the industry average of 0.39 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Ramco Industries Ltd?
Ramco Industries Ltd Debt to cash flow from operations is 4.91 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Ramco Industries Ltd?
Promoters hold 54.79% of the Ramco Industries Ltd, with 1.05% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Ramco Industries Ltd vs industry peers?
Ramco Industries Ltd revenue CAGR is 10.91% , compared to the industry median CAGR of 5.91% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,387 1,298.5
Gross Profit 147 77.3
Operating Profit 112 97
Net Profit 88 43
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.81 0.82
ROE 7.27 7.28
ROCE 9.03 9.38
Cash Conversion Cycle (days) 152.86 17

Valuation & price assessment

Q.1 Stock return of Ramco Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 9.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 9.7% 1.7% 28.2% 15.1%
Q.3 Valuation ratios of Ramco Industries Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 24.13 23.94 34.86
Price to Book 1.76 2.05 1.92
Price to Sales 1.74 2.13 1.25
EV to EBITDA 14.3 14.30 11.55

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