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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Ramco Industries Ltd

About the Company - Ramco Industries Ltd

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

Ramco Industries Ltd. Share Price Update

Share PriceValue
Today₹228.90
Previous Day₹243.60

Basic Stock Data of Ramco Industries Ltd

Market Cap 2,019 Cr.
Current Price 233
High / Low274/117
Stock P/E17.1
Book Value 459
Dividend Yield0.42 %
ROCE3.42 %
ROE3.15 %
Face Value 1.00

Data Source: screener.in

Competitors of Ramco Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Visaka Industries Ltd 1,153 Cr. 133178/64.4201 88.21.55 %9.89 %7.78 % 2.00
BIGBLOC Construction Ltd 1,695 Cr. 240266/11761.4 12.40.16 %35.7 %49.9 % 2.00
Sanghi Industries Ltd 2,964 Cr. 115156/54.6 51.50.00 %2.76 %19.2 % 10.0
Industry Average1.33 Cr162.6787.4750.70.57%16.12%25.63%4.67

Ramco Industries Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales261.44303.78339.53418.82311.23337.21390.71496.78303.70304.44350.00486.96315.82
Expenses218.22255.46299.97337.80255.67286.02355.37422.32273.22293.82316.29433.35286.56
Operating Profit43.2248.3239.5681.0255.5651.1935.3474.4630.4810.6233.7153.6129.26
OPM %16.53%15.91%11.65%19.34%17.85%15.18%9.05%14.99%10.04%3.49%9.63%11.01%9.26%
Other Income3.201.9117.691.473.343.622.354.788.516.527.454.403.12
Interest2.112.021.972.211.951.972.512.854.306.647.186.315.70
Depreciation8.238.327.938.468.628.776.828.248.398.109.168.969.18
Profit before tax36.0839.8947.3571.8248.3344.0728.3668.1526.302.4024.8242.7417.50
Tax %37.80%41.14%25.89%41.17%30.42%30.95%28.74%29.19%43.31%98.33%-72.93%23.47%56.23%
Net Profit78.8371.6766.4375.59143.5537.3946.3260.662.580.8458.4339.57-4.15
EPS in Rs9.108.277.678.7216.564.315.347.000.300.106.734.56-0.48

Ramco Industries Ltd Quarterly Chart

Ramco Industries Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales7838807858638658819321,0369741,2091,4601,4581,457
Expenses6507497227837857648149098711,0141,2341,3051,330
Operating Profit133131638080117118128103195226152127
OPM %17%15%8%9%9%13%13%12%11%16%15%10%9%
Other Income2518112143224424462282421
Interest2531363840342215151092126
Depreciation35374925252628293133333435
Profit before tax9980-1139577911210710317519312287
Tax %22%16%71%7%-0%30%30%30%33%34%34%13%
Net Profit7767-39019220517617217027930312395
EPS in Rs8.877.78-0.3610.3922.2123.6320.3119.8919.5632.1634.9514.1110.91
Dividend Payout %12%14%-70%3%2%2%2%3%3%3%3%7%

Ramco Industries Ltd Profit & Loss Yearly Chart

Ramco Industries Ltd Growth

Compounded Sales Growth
10 Years:5%
5 Years:9%
3 Years:14%
TTM:-5%
Compounded Profit Growth
10 Years:6%
5 Years:-6%
3 Years:-10%
TTM:-37%
Stock Price CAGR
10 Years:22%
5 Years:6%
3 Years:2%
1 Year:72%
Return on Equity
10 Years:7%
5 Years:6%
3 Years:7%
Last Year:3%

Ramco Industries Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital9999999999998
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

Ramco Industries Ltd 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

Ramco Industries Ltd 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%

Ramco Industries Ltd Financial Efficiency Indicators Chart

Ramco Industries Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters54.03%54.03%54.03%54.03%54.03%53.97%53.97%53.97%53.97%53.88%53.88%53.88%
FIIs0.71%2.34%2.84%2.99%2.99%3.03%3.02%2.94%1.98%1.16%0.73%0.71%
DIIs5.27%4.81%3.62%3.51%3.51%3.51%3.51%3.51%3.51%3.50%3.50%4.24%
Government0.16%0.16%0.16%0.20%0.20%0.20%0.20%0.00%0.00%0.00%0.00%0.00%
Public39.83%38.66%39.36%39.28%39.27%39.29%39.31%39.58%40.54%41.45%41.89%41.16%
No. of Shareholders18,77622,00927,24427,76128,62528,99229,63429,58330,58330,35531,22232,809

Ramco Industries Ltd Shareholding Pattern Chart

No. of Ramco Industries Ltd Shareholders

Ramco Industries Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Tata Small Cap Fund22815810.7748.63

Ramco Industries Ltd ROCE Trend

Ramco Industries Ltd EPS Trend

Ramco Industries Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)14.6536.2733.3820.2920.63
Diluted EPS (Rs.)14.6536.2733.3820.2920.63
Cash EPS (Rs.)16.1318.3717.1411.5212.00
Book Value[Excl.RevalReserv]/Share (Rs.)447.42433.73402.01370.33352.19
Book Value[Incl.RevalReserv]/Share (Rs.)447.42433.73402.01370.33352.19
Revenue From Operations / Share (Rs.)167.90168.14139.55112.40119.60
PBDIT / Share (Rs.)19.9826.9925.0716.6117.51
PBIT / Share (Rs.)16.0823.2221.3113.0414.11
PBT / Share (Rs.)14.0222.2220.2011.9312.37
Net Profit / Share (Rs.)12.2314.6013.387.958.60
NP After MI And SOA / Share (Rs.)14.1134.9532.1619.5619.89
PBDIT Margin (%)11.9016.0517.9614.7714.64
PBIT Margin (%)9.5713.8015.2611.5911.79
PBT Margin (%)8.3413.2114.4710.6110.34
Net Profit Margin (%)7.288.689.587.077.18
NP After MI And SOA Margin (%)8.4020.7823.0417.4016.62
Return on Networth / Equity (%)3.158.058.005.285.64
Return on Capital Employeed (%)3.515.235.193.463.90
Return On Assets (%)2.747.006.964.564.91
Long Term Debt / Equity (X)0.010.000.010.010.01
Total Debt / Equity (X)0.070.050.040.060.05
Asset Turnover Ratio (%)0.430.420.390.340.40
Current Ratio (X)1.651.461.491.351.54
Quick Ratio (X)0.420.590.650.560.76
Inventory Turnover Ratio (X)1.481.641.391.411.67
Dividend Payout Ratio (NP) (%)7.070.003.105.112.51
Dividend Payout Ratio (CP) (%)5.540.002.784.322.14
Earning Retention Ratio (%)92.930.0096.9094.8997.49
Cash Earning Retention Ratio (%)94.460.0097.2295.6897.86
Interest Coverage Ratio (X)8.2727.0622.719.8010.05
Interest Coverage Ratio (Post Tax) (X)5.9215.6413.125.355.93
Enterprise Value (Cr.)1311.371963.192289.221114.431937.13
EV / Net Operating Revenue (X)0.891.351.891.141.87
EV / EBITDA (X)7.568.3910.547.7412.76
MarketCap / Net Operating Revenue (X)0.731.261.840.991.78
Retention Ratios (%)92.920.0096.8994.8897.48
Price / BV (X)0.270.480.630.300.60
Price / Net Operating Revenue (X)0.731.261.840.991.78
EarningsYield0.110.160.120.170.09

Ramco Industries Ltd Profitability Ratios (%)

Ramco Industries Ltd Liquidity Ratios

Ramco Industries Ltd Liquidity Ratios (%)

Ramco Industries Ltd Interest Coverage Ratios (X)

Ramco Industries Ltd Valuation Ratios

Fair Value / Intrinsic Value of Ramco Industries Ltd

Fair Value: ₹248.28

The stock is undervalued by 6.56% compared to the current price ₹233

*Investments are subject to market risks

Strength and Weakness of Ramco Industries Ltd

StrengthWeakness
  1. The company has higher reserves (2,424.31 cr) compared to borrowings (293.15 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (536.00 cr) and profit (95.54 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 17.55 and average Dividend Yield of 12.40%.
  2. The stock has a low average ROCE of 6.00%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 97.08, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 206.25, which may not be favorable.

Should I Buy Ramco Industries Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Ramco Industries Ltd:
    1. Net Profit Margin: 7.28%
      • 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: 3.51% (Industry Average ROCE: 16.12%)
      • 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. Interest Coverage Ratio (Post Tax): 5.92
      • 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.
    4. Quick Ratio: 0.42
      • 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.
    5. ✓ Stock P/E: 17.1 (Industry average Stock P/E: 87.47)
      • 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.
    6. ✓ Total Debt / Equity: 0.07
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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