The Ramco Cements Ltd Stock Analysis

BSE: 500260 | NSE: RAMCOCEM | Cement & Construction Materials | Large Cap

BSE Share Price Jan 20, 18:01
951.75 -10.95 (-1.14%)

DeciZen - Make an Informed Decision on The Ramco Cements

Overall Rating

1. Quality

2. Valuation

Fair
P/E P/S EV/EBITDA

3. Price Trend

FAQ's

1. Is The Ramco Cements Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that The Ramco Cements Ltd is a good quality company.

2. Is The Ramco Cements Ltd undervalued or overvalued?

The key valuation ratios of The Ramco Cements Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is The Ramco Cements Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of The Ramco Cements Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of The Ramco Cements:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
The Ramco Cements Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 10.8%10.7%4.4%6.3%12.4%13.9%11.6%9.6%9.3%9.8%-
Value Creation Index -0.2-0.2-0.7-0.5-0.10.0-0.1-0.3-0.3-0.1-

Growth Parameters

Growth Parameters Colour Code Guide
Sales 3,2243,8313,6843,6453,5733,9504,4065,1465,3685,2685,607
YoY Gr. Rt. %-18.8%-3.8%-1.1%-2%10.5%11.6%16.8%4.3%-1.9%-
Adj EPS 16.516.84.28.422.227.323.621.525.532.246.6
YoY Gr. Rt. %-2.3%-75.3%102.4%163.7%23%-13.3%-9.2%18.7%26.3%-
BVPS (₹) 86.299.6104.3111.1129.9157.1171.6189.3207.9237.7267.5
Adj Net Profit 39240098.72005276495565055997581,102
Cash Flow from Ops. 8647014799561,0851,1051,1137907401,885-
Debt/CF from Ops. 3.13.86.12.821.312.14.11.7-

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Sales 5.6%8.1%6.1%-1.9%
Adj EPS 7.7%7.7%10.8%26.3%
BVPS 11.912.811.514.3
Share Price 24.4% 8.9% 15.3% 16.9%

Key Financial Parameters

Performance Ratio Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 20.718.14.17.818.41914.311.912.814.418.5
Op. Profit Mgn % 29.426.415.419.63030.32520.221.229.428.6
Net Profit Mgn % 12.210.52.75.514.816.412.69.811.214.419.7
Debt to Equity 1.31.11.210.70.40.30.40.60.60.3
Working Cap Days 1081041271341281138582899694
Cash Conv. Cycle 465264585557332827190

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 18.50%

Net Profit is growing at healthy rate in last 3 years 10.82%

Debt to equity has declined versus last 3 years average to 0.55

Sales growth is good in last 4 quarters at 14.70%

Sales growth has been subdued in last 3 years 6.14%

Latest Financials - The Ramco Cements Ltd.

Standalone Consolidated
TTM EPS (₹) 46.6 47
TTM Sales (₹ Cr.) 5,607 5,607
BVPS (₹.) 267.5 272
Reserves (₹ Cr.) 6,296 6,404
P/BV 3.60 3.54
PE 20.65 20.48
From the Market
52 Week Low / High (₹) 765.85 / 1130.95
All Time Low / High (₹) 9.75 / 1130.95
Market Cap (₹ Cr.) 22,748
Equity (₹ Cr.) 23.6
Face Value (₹) 1
Industry PE 31.6

Management X-Ray of The Ramco Cements :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *1.971.971.971.9711.4712.4013.0112.2213.7613.76
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About The Ramco Cements Ltd

The Ramco Cements is the flagship company of the Ramco Group, a well-known business group of South India. It is headquartered at Chennai. The main product of the company is Portland cement, manufactured in eight state-of-the art production facilities that includes Integrated Cement plants and Grinding units. The company is the fifth largest cement producer in the country. Ramco Grade is the most popular cement brand in South India. The company also produces Ready Mix Concrete and Dry Mortar products, and operates one of the largest wind farms in the country.

Business area of the company

The Company is engaged in manufacture of Cement, Ready Mix Concrete and Dry Mortar products. The Company caters mainly to the domestic markets. The Company also sells cement in Srilanka through its branch operations. The Company is also engaged in sale of surplus electricity generated from its windmills after meeting its captive requirements.

Products

  • Cements
  • Drymix Products
  • Ramco Concrete
  • MACE
  • Ramco Concrete
  • 3D VR of Cement Mfg Process

Awards

The Company has won the following awards constituted by National Council for Cement and Building Materials, New Delhi.

Ramasamy Raja Nagar Plant

  • For Best Improvement in Electrical Energy Performance - 2014-15
  • For Best Improvement in Energy Performance in Manufacture of Blended Cements - 2014-15

Alathiyur Plant 

  • For Best Improvement in Energy Performance in Manufacture of Blended Cements - 2013-14

Winner of the Four Leaves Award

  • The Ramco Cements is the only Company in the Indian Cement Industry to win the Four Leaves Award (instituted by Centre for Science & Environment) for taking steps to protect the environment by ensuring dust free and clean factory premises.

Winner of the Cleaner Production Measures Award

  • Andhra Pradesh Pollution Control Board and Environment & Forest Dept, Government of AP, presented the Award to The Ramco Cements, Jayanthipuram Unit in recognition of practicing Cleaner Production Measures, on the eve of World Environment Day celebrated at Hyderabad June 05, 2012.

Winner of CII Environmental Best Practices Award

  • Alathiyur Unit bagged the CII Environmental Best Practices Award 2012.

Other award won by the company includes:

  • Green Award 2012 - Alathiyur Factory (Tamil Nadu Pollution Control Board)
  • National Level Excellent Energy Efficient Unit Award 2012 - Alathiyur
  • National Award for Energy Conservation
  • Best Energy Efficient Unit
  • Corporate Performance Award by Economic Times
  • Best Improvement in Energy Performance by International Congress on Chemistry of Cement
  • The Analyst Award by the Institute of Chartered Financial Analysts of India
  • Best all Round Industrial Performance by Federation of AP Chambers of Commerce Industries
  • Visvesvariah Industrial Award by All India Manufacturers Organisation
  • Business Excellence Award
  • Export Performance Award by CAPEXIL
  • State Safety Awards by Tamil Nadu & AP Governments
  • Good Industrial Relations Award by Tamil Nadu & AP Governments
  • Mine Safety Awards by Government of AP
  • Cleaner Production Measures by AP Pollution Control Board

Milestones

  • 1961: The birth of The Ramco Cements Limited.
  • 1962: The first plant of RCL at Ramasamy Raja Nagar, near Virudhunagar in Tamil Nadu, commenced its production with a capacity of 200 tonnes, using wet process.
  • 1970: The plant switched over to more efficient dry process. A second kiln was also added to bring the total capacity to 15 lakh tons per annum.
  • 1987: The second venture of RCL is its Jayanthipuram plant near Vijayawada in A.P., was set u. The 36.50 lakh ton per annum plant employs the latest state-of-the-art technology.
  • 1993: RCL set up the Ramco Windfarm in 1993 at Muppandal in TN.
  • 1995: RCL set up the wind farms in Poolavadi near Coimbatore.
  • 1997: The third venture of RCL is at Alathiyur in TN, was set up
  • 1999: RCL commissioned the most sophisticated Ready Mix Concrete Plant in Medavakkam in South Chennai.
  • 2000: RCL acquired Gokul Cements situated in Mathod in Karnataka whose capacity is 2.90 lakh tons per annum.
  • 2001: Alathiyur plant expanded by addition of another line. The 30.50 lakh tons per annum plant is the most modern plant in the country.
  • 2002: a state-of-art Dry Mortar plant was commissioned near Sriperumpudur, Tamilnadu which manufactures dry mortar, cement based putty and tile fix compound.
  • 2005: RCL set up the wind farms in Oothumalai.
  • 2005: RCL set up the wind farms in Mathod.
  • 2009: Ariyalur plant started operations in 2009 with a capacity of 2 MTPA. It is well-equipped with modern quality control systems.
  • 2012: The Line 2 of the plant with a capacity of another 2 MTPA was commissioned.
  • 2013 - Madras Cements Ltd. shall be changed to The Ramco Cements Ltd. and the trading symbol of the Company be changed from MADRASCEM to RAMCOCEM.
  • 2015 - The Ramco Cements Ltd won the following awards constituted by National Council for Cement and Building Materials -Order passed by Competition Appellate Tribunal (COMPAT) -CLSA - Life-high unit Ebitda -CENTRUM - Sparkling Performance Continues
  • 2019 - Ramco Cements gets 5-Star rating for Ariyalur factory in Tamil Nadu.
  • 2020 - Ramco Cements enters into MoU with Government of Tamil Nadu.
  • 2020 - Ramco Cements inaugurates plant operations of grinding unit at Odisha.
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