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Ramco Industries Ltd. Stock Analysis

Small Cap
Evaluated by 586 users | BSE: 532369 | NSE: RAMCOIND |
Cement & Construction Materials
Ramco Industries incorporated in 1967; is engaged in manufacturing of fibre cement sheets, fibre cement pressure pipes, calcium silicate boards, cement and plastic storage containers.  The company manufacturing facilities are located at Arakkonam (Tamil Nadu), Karur (Karnataka), Maksi...

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.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 11.31%12.26%9.6%2.02%4.59%6.18%8.41%8.6%9.32%7.37%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 560665782669735707712799898826
Y-o-Y Gr. Rt.-18.9%17.5%-14.5%9.9%-3.8%0.7%12.2%12.4%-8%
Adjusted EPS (Rs.) 6.087.026.28-0.681.613.086.077.28.457.09
Y-o-Y Gr. Rt.-15.5%-10.5%-110.8%NA91.3%97.1%18.6%17.4%-16.1%
Book Value per Share (Rs.) 43.1248.9253.9353.0955.0160.4568.0576.6484.8390.55
Adjusted Net Profit 52.760.854.4-5.913.926.752.662.473.361.4
Net Op. Cash Flow (Rs. Cr.) 108121.879.661.622.7-0.510951.79.9
Debt to Cash Flow from Ops 2.2119.29247.264.956.5515.84-661.551.953.6324.11
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.
Ramco Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 4.4%2.4%5.1%-8%
Adjusted EPS 1.7%34.5%5.3%-16.1%
Book Value per Share 8.610.5106.7
Share Price 18.1% 8% -15.2% 3.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 1515.2512.21-1.262.985.339.449.9510.478.08
Operating Profit Margin (%) 17.9213.2712.565.825.45.9610.4511.2711.558.93
Net Profit Margin (%) 9.429.146.96-0.881.93.777.387.818.167.43
Debt to Equity 0.640.550.920.860.850.690.570.320.250.3
Working Capital Days 144142160203174183192192172206
Cash Conversion Cycle 7675104146123128131128116137
Entity Percentage Holding
Promoters 54.03%
Institutions 6.48%
Non-Institutions 39.49%
Pledged *9.548.208.208.208.188.188.188.188.188.18
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

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

Ramco Industries Ltd. earnings have grown by 34.5%, whereas share price has appreciated 8% 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 Ramco Industries Ltd. share prices over the last 10 years. Here is what we found out:

Ramco Industries Ltd. share price has appreciated 10.8% annually over the past ten years.

Ramco Industries incorporated in 1967; is engaged in manufacturing of fibre cement sheets, fibre cement pressure pipes, calcium silicate boards, cement and plastic storage containers. 

The company manufacturing facilities are located at Arakkonam (Tamil Nadu), Karur (Karnataka), Maksi (Madhya Pradesh),

Silvassa (UnionTerritory of Dadra and Nagar Haveli), Kharagpur (West Bengal), Vijayawada (Andhra Pradesh),

Ramco Industries incorporated in 1967; is engaged in manufacturing of fibre cement sheets, fibre cement pressure pipes, calcium silicate boards, cement and plastic storage containers. 

The company manufacturing facilities are located at Arakkonam (Tamil Nadu), Karur (Karnataka), Maksi (Madhya Pradesh),

Silvassa (UnionTerritory of Dadra and Nagar Haveli), Kharagpur (West Bengal), Vijayawada (Andhra Pradesh), Sinugra (Gujarat)

Ramco operates subsidiaries namely Sudharsanam Investments, India and Sri Ramco Lanka, Sri Lanka. The Company also conducts research and development activities in area of conventional and non-conventional fibres and production technology for manufacture of fibre cement sheets / calcium silicate boards.

Business division

Building Products- Ramco manufactures fibre cement roofing sheets, fibre cement roofing accessories, fibre cement pressure pipes and hilux calcium silicate boards.

Ramco Industries pressure pipe is used as water mains, sewerage pipes in pressure lines. Company’s production capacity Fibre Cement Pressure Pipe is 30 lakh tonnes per annum.Company’s calcium silicate board have applications in area of ceiling, panels, wall linings claddings and many more. Company’s production capacity of fibre cement sheet is 5 lakh tonnes per annum.

Under roofing accessories, company manufactures corrugated close fitting adjustable ridge, corrugated serrated adjustable ridge, ridge final, northlight two-piece adjustable ridge, apron piece, eaves filler piece, unserrated adjustable ridge for hips, plainwing adjustable ridge, one-piece plain angular ridge are among others.

Textile division- Sri Ramco Spinners is a division of Ramco Industries that produces world class high quality combed cotton yarn of 60s, 30s, 20s and 16s count for export to Europe, South East Asia and Japan. The mill has a total capacity of 26,208 spindles.

Power division- Ramco Industries produces wind energy that has total capacity of 14.90 MV. The Wind Farm sites are situated in Tirunelveli and Coimbatore Districts of Tamil Nadu, Kutch District in Gujarat, Chitra Durga District in Karnataka.

Outlook

The company plans to set up a new plant for manufacture of Fibre Cement Product with an Installed Capacity of 1,20,000 M.T. p.a. at SIPCOT Industrial Growth Centre, Gangaikondan, near Tirunelveli, Tamilnadu.

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

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