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The Ramco Cements Ltd Stock Analysis

Mid Cap
Evaluated by 2138 users | BSE: 500260 | NSE: RAMCOCEM |
Cement & Construction Materials

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...

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 24.4% 16.6% 1.2% -6.8%
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 42.61%
Institutions 34.29%
Non-Institutions 23.10%
Pledged *1.961.961.961.961.971.971.971.9711.4712.40
* Pledged shares as % of Promoter's holding (%)

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

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

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

The Ramco Cements Ltd earnings have grown by 24.8%, whereas share price has appreciated 16.6% 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 Ltd share prices over the last 10 years. Here is what we found out:

The Ramco Cements Ltd share price has appreciated 23.7% annually over the past ten years.

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

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.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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