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INVESTMENT INSIGHTS

Check Before You Invest : The Ramco Cements Ltd

BSE: 500260 NSE: RAMCOCEM ISIN: INE331A01037
  |   Sector:  Construction & Infrastructure   |   Industry:  Cement & Construction Materials

Snapshot

Q.1 Which industry/sub-sector does The Ramco Cements Ltd belong to?
The Ramco Cements Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Cement & Construction Materials segment.
Q.2 Is The Ramco Cements Ltd a good quality company?
The Ramco Cements Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is The Ramco Cements Ltd undervalued or overvalued?
The Ramco Cements Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is The Ramco Cements Ltd a good buy now?
The Ramco Cements 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 The Ramco Cements Ltd?
The Ramco Cements Ltd revenue growth is -9.1% for FY-2025 , which is below its 5 year CAGR of 9.6% , indicating slower growth.
Q.2 Gross Profit margin of The Ramco Cements Ltd?
The Ramco Cements Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.5% for FY-2025 , which is below its 5 year median of 8.5% , indicating decreasing margins.
Q.3 Operating Profit Margin of The Ramco Cements Ltd?
The Ramco Cements Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.52% for FY-2025 , which is below its 5 year median of 16.62% indicating decreasing margins.
Q.4 Net Profit Margin of The Ramco Cements Ltd?
The Ramco Cements Ltd Net Profit Margin is 4.91% for FY-2025 , is in line with with its 5 year median of 4.91%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 6.5 8.5
Operating Profit Margin 14.52 16.62
Net Profit Margin 4.91 4.91
Q.5 Return on Asset of The Ramco Cements Ltd?
The Ramco Cements Ltd Return on Asset is 2.56%, which is below its 5 year historical median of 2.57%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of The Ramco Cements Ltd?
The Ramco Cements Ltd Return on equity is 5.7% for FY-2025 , which is in line with its historical median of 5.7%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of The Ramco Cements Ltd?
The Ramco Cements Ltd Return on capital employed is 7.65% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 13.5%, indicating value preservation.
Q.8 Cash conversion cycle of The Ramco Cements Ltd?
The Ramco Cements Ltd Cash conversion cycle is 7 days, below its historical median of 11 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.77 0.77
ROE 5.7 5.7
ROCE 7.65 8.22
Cash Conversion Cycle 7 days 11 days
Q.9 Debt to Equity ratio of The Ramco Cements Ltd?
The Ramco Cements Ltd Debt-to-Equity ratio is 0.62 , which is above with the industry average of 0.39 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of The Ramco Cements Ltd?
The Ramco Cements Ltd Debt to cash flow from operations is 3.32 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of The Ramco Cements Ltd?
Promoters hold 42.56% of the The Ramco Cements Ltd, with 3.43% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of The Ramco Cements Ltd vs industry peers?
The Ramco Cements Ltd revenue CAGR is 9.61% , compared to the industry median CAGR of 5.91% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 8,495.1 1,298.5
Gross Profit 552.2 77.3
Operating Profit 1,233 97
Net Profit 417 43
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.77 0.82
ROE 5.7 7.28
ROCE 7.65 9.38
Cash Conversion Cycle (days) 6.75 17

Valuation & price assessment

Q.1 Stock return of The Ramco Cements Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 8.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 8.7% -0% 9.9% 4.6%
Q.3 Valuation ratios of The Ramco Cements 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 40.91 32.78 34.86
Price to Book 2.96 3.40 1.92
Price to Sales 2.69 3.43 1.25
EV to EBITDA 19.72 18.52 11.55

Check more companies

1. ACC
2. The Ramco Cements
3. JSW Cement
4. India Cements
5. Nuvoco Vistas Corpor
6. Star Cement
7. JK Lakshmi Cement
8. Birla Corporation
9. Prism Johnson
10. Heidelberg Cement
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