Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 25 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Ramco Industries Ltd

Basic Stock Data

Last Updated: June 25, 2024, 10:24 pm

Market Cap 2,215 Cr.
Current Price 255
High / Low274/163
Stock P/E21.0
Book Value 468
Dividend Yield0.39 %
ROCE3.14 %
ROE2.66 %
Face Value 1.00
PEG Ratio-2.32

Competitors of Ramco Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
BIGBLOC Construction Ltd 1,679 Cr. 237284/13854.7 14.70.17 %24.0 %34.2 % 2.00
Sanghi Industries Ltd 2,725 Cr. 105156/67.5 43.00.00 %5.45 %34.1 % 10.0
Visaka Industries Ltd 1,030 Cr. 119178/79.2407 87.50.42 %3.33 %0.33 % 2.00
Industry Average1,811.33 Cr153.67153.9048.400.20%10.93%22.88%4.67

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales340419311337391497304304350487316334365
Expenses300338256286355422273294316433287300325
Operating Profit40815651357430113454293440
OPM %12%19%18%15%9%15%10%3%10%11%9%10%11%
Other Income18134259774334
Interest2222334776676
Depreciation88997888999910
Profit before tax4772484428682622543182028
Tax %26%41%30%31%29%29%43%98%-73%23%56%36%30%
Net Profit6676144374661315840-42644
EPS in Rs7.678.7216.564.315.347.000.300.106.734.56-0.483.045.05

Last Updated: June 9, 2024, 6:02 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: June 25, 2024, 8:48 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales8807858638658819321,0369741,2091,4601,4581,501
Expenses7497227837857648149098711,0141,2341,3051,345
Operating Profit131638080117118128103195226152156
OPM %15%8%9%9%13%13%12%11%16%15%10%10%
Other Income18112143224424462282414
Interest31363840342215151092125
Depreciation374925252628293133333437
Profit before tax80-11395779112107103175193122109
Tax %16%71%7%-0%30%30%30%33%34%34%13%33%
Net Profit67-390192205176172170279303123106
EPS in Rs7.78-0.3610.3922.2123.6320.3119.8919.5632.1634.9514.1112.18
Dividend Payout %14%-70%3%2%2%2%3%3%3%3%7%6%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-104.48%3100.00%113.33%6.77%-14.15%-2.27%-1.16%64.12%8.60%-59.41%-13.82%
Change in YoY Net Profit Growth (%)0.00%3204.48%-2986.67%-106.56%-20.92%11.87%1.11%65.28%-55.52%-68.01%45.58%

Growth

Compounded Sales Growth
10 Years:7%
5 Years:8%
3 Years:7%
TTM:3%
Compounded Profit Growth
10 Years:44%
5 Years:-9%
3 Years:-28%
TTM:-12%
Stock Price CAGR
10 Years:15%
5 Years:5%
3 Years:-3%
1 Year:55%
Return on Equity
10 Years:6%
5 Years:5%
3 Years:5%
Last Year:3%

Last Updated: June 25, 2024, 4:54 pm

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital9999999999999
Reserves4615185136022,5142,7072,8773,0443,2013,4753,7503,8753,979
Borrowings239451408413363336213187238152224308279
Other Liabilities155145117140173211217224266332312273276
Total Liabilities8641,1231,0471,1643,0593,2633,3153,4643,7133,9684,2944,4654,542
Fixed Assets300291411407407424424443467472523563561
CWIP17110121022111052136191214
Investments1981981982612,1292,2702,3662,4772,6022,8173,0533,0583,139
Other Assets349524427487501558515539624643699832829
Total Assets8641,1231,0471,1643,0593,2633,3153,4643,7133,9684,2944,4654,542

Reserves and Borrowings Chart

Ramco Industries Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 519123897947126883619088-43
Cash from Investing Activity -64-117-50-156-913-33-63-73-138-27
Cash from Financing Activity -798-55-77-57-48-150-3627-1046354
Net Cash Flow-20-1018-328-9-122001413-17

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-320.00-345.00-333.00-283.00-219.00-95.00-59.00-135.0043.002.00-156.00-86.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days282629303030353331282315
Inventory Days136227171195202256207194264217203273
Days Payable362222285046363350482611
Cash Conversion Cycle127230178198183239206194246197200277
Working Capital Days5712011010187108100801048285131
ROCE %18%13%3%7%4%3%4%4%3%5%5%3%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters54.03%54.03%54.03%53.97%53.97%53.97%53.97%53.88%53.88%53.88%53.88%54.81%
FIIs2.84%2.99%2.99%3.03%3.02%2.94%1.98%1.16%0.73%0.71%0.90%0.85%
DIIs3.62%3.51%3.51%3.51%3.51%3.51%3.51%3.50%3.50%4.24%4.18%4.18%
Government0.16%0.20%0.20%0.20%0.20%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public39.36%39.28%39.27%39.29%39.31%39.58%40.54%41.45%41.89%41.16%41.04%40.16%
No. of Shareholders27,24427,76128,62528,99229,63429,58330,58330,35531,22232,80934,25734,271

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Tata Small Cap Fund2,281,5810.7748.632,281,5812024-06-200%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)12.6714.6536.2733.3820.29
Diluted EPS (Rs.)12.6714.6536.2733.3820.29
Cash EPS (Rs.)12.6716.1318.3717.1411.52
Book Value[Excl.RevalReserv]/Share (Rs.)467.85447.42433.73402.01370.33
Book Value[Incl.RevalReserv]/Share (Rs.)467.85447.42433.73402.01370.33
Revenue From Operations / Share (Rs.)172.96167.90168.14139.55112.40
PBDIT / Share (Rs.)19.6419.9826.9925.0716.61
PBIT / Share (Rs.)15.3816.0823.2221.3113.04
PBT / Share (Rs.)12.5014.0222.2220.2011.93
Net Profit / Share (Rs.)8.4112.2314.6013.387.95
NP After MI And SOA / Share (Rs.)12.1814.1134.9532.1619.56
PBDIT Margin (%)11.3511.9016.0517.9614.77
PBIT Margin (%)8.899.5713.8015.2611.59
PBT Margin (%)7.228.3413.2114.4710.61
Net Profit Margin (%)4.867.288.689.587.07
NP After MI And SOA Margin (%)7.048.4020.7823.0417.40
Return on Networth / Equity (%)2.603.158.058.005.28
Return on Capital Employeed (%)3.233.515.235.193.46
Return On Assets (%)2.312.747.006.964.56
Long Term Debt / Equity (X)0.000.010.000.010.01
Total Debt / Equity (X)0.050.070.050.040.06
Asset Turnover Ratio (%)0.330.430.420.390.34
Current Ratio (X)1.851.651.461.491.35
Quick Ratio (X)0.470.420.590.650.56
Inventory Turnover Ratio (X)1.401.481.641.391.41
Dividend Payout Ratio (NP) (%)0.007.070.003.105.11
Dividend Payout Ratio (CP) (%)0.005.540.002.784.32
Earning Retention Ratio (%)0.0092.930.0096.9094.89
Cash Earning Retention Ratio (%)0.0094.460.0097.2295.68
Interest Coverage Ratio (X)6.828.2727.0622.719.80
Interest Coverage Ratio (Post Tax) (X)3.925.9215.6413.125.35
Enterprise Value (Cr.)1898.361311.371963.192289.221114.43
EV / Net Operating Revenue (X)1.260.891.351.891.14
EV / EBITDA (X)11.137.568.3910.547.74
MarketCap / Net Operating Revenue (X)1.160.731.261.840.99
Retention Ratios (%)0.0092.920.0096.8994.88
Price / BV (X)0.420.270.480.630.30
Price / Net Operating Revenue (X)1.160.731.261.840.99
EarningsYield0.060.110.160.120.17

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 262.44

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 2.92% compared to the current price 255

Intrinsic Value: 238.72

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 6.38% compared to the current price ₹255

Last 5 Year EPS CAGR: -9.04%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (2,594.00 cr) compared to borrowings (294.58 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (515.42 cr) and profit (97.08 cr) over the years.
  1. The stock has a low average ROCE of 6.00%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 97.08, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 206.25, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Ramco Industries Ltd:
    1. Net Profit Margin: 4.86%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 3.23% (Industry Average ROCE: 10.16%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 2.60% (Industry Average ROE: 12.4%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 3.92
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.47
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 21.0 (Industry average Stock P/E: 156.1)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.05
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Ramco Industries Ltd. is a Public Limited Listed company incorporated on 27/01/1965 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L26943TN1965PLC005297 and registration number is 005297. Currently Company is involved in the business activities of Preparation and spinning of cotton fiber including blended* cotton. Company’s Total Operating Revenue is Rs. 1183.91 Cr. and Equity Capital is Rs. 8.67 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Cement Products47, P.S.K. Nagar, Rajapalayam Tamil Nadu 626108bms@ril.co.in
http://www.ramcoindltd.com
Management
NamePosition Held
Mr. P R Venketrama RajaChairman
Mr. P V Abinav Ramasubramaniam RajaManaging Director
Mr. S S Ramachandra RajaDirector
Mr. N K Shrikantan RajaDirector
Mr. R S AgarwalDirector
Mr. V SanthanaramanDirector
Justice(Retd) Chitra VenkataramanDirector
Mr. Ajay Bhaskar BaligaDirector

FAQ

What is the latest fair value of Ramco Industries Ltd?

The latest fair value of Ramco Industries Ltd is ₹262.44.

What is the Market Cap of Ramco Industries Ltd?

The Market Cap of Ramco Industries Ltd is 2,215 Cr..

What is the current Stock Price of Ramco Industries Ltd as on 25 June 2024?

The current stock price of Ramco Industries Ltd as on 25 June 2024 is ₹255.

What is the High / Low of Ramco Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Ramco Industries Ltd stocks is 274/163.

What is the Stock P/E of Ramco Industries Ltd?

The Stock P/E of Ramco Industries Ltd is 21.0.

What is the Book Value of Ramco Industries Ltd?

The Book Value of Ramco Industries Ltd is 468.

What is the Dividend Yield of Ramco Industries Ltd?

The Dividend Yield of Ramco Industries Ltd is 0.39 %.

What is the ROCE of Ramco Industries Ltd?

The ROCE of Ramco Industries Ltd is 3.14 %.

What is the ROE of Ramco Industries Ltd?

The ROE of Ramco Industries Ltd is 2.66 %.

What is the Face Value of Ramco Industries Ltd?

The Face Value of Ramco Industries Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Ramco Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE