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The Ramco Cements Ltd. Stock Analysis

Mid Cap
Evaluated by 2070 users | BSE: 500260 | NSE: RAMCOCEM |
Cement & Construction Materials
The Ramco Cements earlier known as Madras Cements (MCL) was established in 1957, a part of Ramco Group, a well known business group of South India. It is based at Chennai. The company is the fifth largest cement producer in the country. Ramco Supergrade is the most popular cement brand in...
1. Right Stock
Very Good
2. Right Price
3. Right Time

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'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 7.14%10.84%10.74%4.43%6.25%12.38%13.89%11.6%9.64%9.28%
Value Creation Index -0.41-0.11-0.12-0.64-0.490.020.14-0.04-0.21-0.24
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,6163,2243,8313,6843,6453,5733,9504,4065,1465,368
Y-o-Y Gr. Rt.-23.2%18.8%-3.8%-1.1%-2%10.5%11.6%16.8%4.3%
Adjusted EPS (Rs.) 8.816.4616.834.158.422.1527.2523.6221.4525.45
Y-o-Y Gr. Rt.-87.1%2.3%-75.3%102.4%163.7%23%-13.3%-9.2%18.7%
Book Value per Share (Rs.) 72.8886.1599.61104.29111.1129.92157.14171.57189.31207.85
Adjusted Net Profit 20939240098.7200527649556505599
Net Op. Cash Flow (Rs. Cr.) 6198647014799561,0851,1051,113790740
Debt to Cash Flow from Ops 4.513.143.86.082.841.961.2912.054.09
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
The Ramco Cements Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 8.3%8.1%10.8%4.3%
Adjusted EPS 12.5%24.8%-2.3%18.7%
Book Value per Share 12.413.49.89.8
Share Price 24.3% 17.3% 0.9% -6.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 12.7220.718.114.077.818.3818.9814.311.8912.78
Operating Profit Margin (%) 24.0629.426.4215.3819.5930.0130.262520.1721.2
Net Profit Margin (%) 812.1510.452.685.4914.7616.4212.639.8211.17
Debt to Equity 1.611.321.131.171.030.690.380.280.360.62
Working Capital Days 133108104127134128113858289
Cash Conversion Cycle 44465264585557332827
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 42.66%
Institutions 36.76%
Non-Institutions 20.58%
Pledged *1.971.971.961.961.961.961.971.971.971.97
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of The Ramco Cements and arrived at the following conclusion:

Past 10 year's financial track record indicates that The Ramco Cements is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of The Ramco Cements's performance infers:

The Ramco Cements earnings have grown by 24.8%, whereas share price has appreciated 17.3% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of The Ramco Cements share prices over the last 10 years. Here is what we found out:

The Ramco Cements share price has appreciated 19.8% annually over the past ten years.

The Ramco Cements earlier known as Madras Cements (MCL) was established in 1957, a part of Ramco Group, a well known business group of South India. It is based at Chennai. The company is the fifth largest cement producer in the country. Ramco Supergrade is the most popular cement brand in 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

The Ramco Cements earlier known as Madras Cements (MCL) was established in 1957, a part of Ramco Group, a well known business group of South India. It is based at Chennai. The company is the fifth largest cement producer in the country. Ramco Supergrade is the most popular cement brand in 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 with a current total production capacity of 15.5 MTPA.

The first plant of MCL at Ramasamy Raja Nagar, near Virudhunagar in Tamil Nadu commenced its production in 1962 with a capacity of 200 tonnes, using wet process. In 70's, the plant switched over to more efficient dry process. A second kiln was also added to bring the total capacity to 12 lakh ton per annum. The second venture of MCL is its Jayanthipuram plant near Vijayawada in A.P set up in 1987. The 16 lakh ton per annum plant employs the latest state of art technology.

In the year 1999, MCL commissioned the most sophisticated Ready Mix Concrete Plant in Medavakkam in South Chennai. In 2002, a state-of-art Dry Mortar plant was commissioned near Sriperumpudur, Tamilnadu which manufactures dry mortar, cement based putty and tile fix compound. In 2000, MCL acquired Gokul Cements situated in Mathod in Karnataka whose capacity is 600 TPD. Being a eco-friendly company, MCL set up the Ramco Winfarm in 1993 at Muppandal  TN. This was followed by wind farms in Poolavadi near Coimbatore in 1995 and Oothumalai in 2005.  The combined capacity of these two put together is about 45 MW.

The third venture of MCL is at Alathiyur in TN set up in 1997 and expanded by addition of another line in 2001. The 30 lac ton per annum plant is the most modern plant in the country.

Today the company is the sixth largest producer of cement in India. It is also one of the largest wind energy producer in the country with a capacity of 185.59 MW.

Business area of the company

The main product of the company is Portland Cement manufactured through the five advanced production facilities spread over South India. The cement capacity is 10.49 million tons per annum.

The company also produces Ready Mix Concrete and Dry Mortar products. In addition, the company also operates one of the largest wind farms in the country.

Awards

MCL won National Award for Energy Conservation from Confederation of Indian Industries.

It was awarded the Best Energy Efficient Unit from National Council for Cement and Building Materials.

Madras Cement received Corporate Performance Award from Economic Times.

It was honoured by The Analyst Award from International Congress on Chemistry of Cement.

2010-12

Good Industrial Relations AwardMine Safety AwardsExport Performance AwardState Safety AwardsVisvesvariah Industrial AwardBusiness Excellence AwardThe Analyst AwardBest all Round Industrial PerformanceCorporate Performance AwardBest Improvement in Energy PerformanceNational Award for Energy ConservationBest Energy Efficient UnitGreen Award 2012 - Alathiyur FactoryNational Level Excellent Energy Efficient Unit Award 2012 - Alathiyur'

2012
Green Award 2012
National Level Excellent Energy Efficient Unit Award 2012
Winner of the Cleaner Production Measures Award

 

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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