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Last Updated on: 03 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 500260 | NSE: RAMCOCEM

The Ramco Cements Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 3, 2024, 9:10 pm

Market Cap 24,593 Cr.
Current Price 1,040
High / Low1,058/700
Stock P/E89.2
Book Value 302
Dividend Yield0.24 %
ROCE8.17 %
ROE5.63 %
Face Value 1.00
PEG Ratio-6.22

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for The Ramco Cements Ltd

Competitors of The Ramco Cements Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bheema Cements Ltd 73.4 Cr. 22.535.3/21.0 13.20.00 %11.8 %56.4 % 10.0
UltraTech Cement Ltd 3,41,923 Cr. 11,85212,138/9,13052.0 2,1260.59 %15.1 %12.2 % 10.0
The Ramco Cements Ltd 24,593 Cr. 1,0401,058/70089.2 3020.24 %8.17 %5.63 % 1.00
The India Cements Ltd 11,486 Cr. 371386/173 1700.00 %0.78 %4.81 % 10.0
Star Cement Ltd 7,907 Cr. 196256/16240.0 67.90.00 %16.5 %11.5 % 1.00
Industry Average35,225.68 Cr1,937.6238.19530.040.58%11.09%16.06%7.13

All Competitor Stocks of The Ramco Cements Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales1,2291,4931,5491,7091,7721,7842,0092,5702,2412,3292,1062,6732,088
Expenses8651,0991,3181,4141,4721,6011,7242,1571,9001,9311,7112,2561,769
Operating Profit364394231295301184285413341399395417319
OPM %30%26%15%17%17%10%14%16%15%17%19%16%15%
Other Income68710799128137148
Interest242925334755617793117102104113
Depreciation969899108106122136141148157166165167
Profit before tax250274113164154169720710813813516248
Tax %32%-89%27%24%27%28%31%26%27%27%31%25%26%
Net Profit169517831241121167152791019312136
EPS in Rs7.1621.913.495.254.750.492.856.453.344.293.955.141.50

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales3,8313,6843,6453,5733,9504,4065,1465,3685,2685,9808,1359,3509,197
Expenses2,8233,1202,9312,5012,7543,3054,1094,2313,7204,6956,9537,7977,667
Operating Profit1,0085647141,0721,1951,1011,0381,1381,5481,2851,1831,5531,530
OPM %26%15%20%30%30%25%20%21%29%21%15%17%17%
Other Income40868788443628373530374243
Interest17918919518210460527388113241416435
Depreciation281306250305284292299315355401504636655
Profit before tax5881543566738507857167871,140801474543484
Tax %31%11%32%19%24%29%29%24%33%-11%27%27%
Net Profit404138242542649556506601761893344395352
EPS in Rs16.965.7910.1822.7727.2723.5921.4725.5232.2637.7814.5416.7214.88
Dividend Payout %18%17%15%13%11%13%14%10%9%8%14%15%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-65.84%75.36%123.97%19.74%-14.33%-8.99%18.77%26.62%17.35%-61.48%14.83%
Change in YoY Net Profit Growth (%)0.00%141.20%48.60%-104.23%-34.07%5.34%27.77%7.85%-9.28%-78.82%76.30%

The Ramco Cements Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:10%
5 Years:13%
3 Years:21%
TTM:-3%
Compounded Profit Growth
10 Years:12%
5 Years:-5%
3 Years:-20%
TTM:-31%
Stock Price CAGR
10 Years:12%
5 Years:6%
3 Years:3%
1 Year:1%
Return on Equity
10 Years:12%
5 Years:10%
3 Years:8%
Last Year:6%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:43 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital24242424242424242424242424
Reserves2,3472,4582,6213,0703,7184,0194,4374,8955,6036,5016,7707,1207,122
Borrowings2,6672,9102,7122,1241,4251,1131,6193,0323,1103,9504,5074,9365,223
Other Liabilities1,4341,4761,6451,6771,8431,9382,0292,0962,6092,5813,2164,0884,025
Total Liabilities6,4716,8697,0026,8947,0097,0938,10810,04711,34613,05614,51716,16816,394
Fixed Assets4,5944,6414,8764,9015,1835,2985,3766,0276,9577,75210,17412,04312,370
CWIP1573542631471201758531,8402,3553,0341,9871,3781,248
Investments266283356372148159175189201201202223173
Other Assets1,4551,5901,5081,4751,5571,4611,7051,9911,8332,0692,1532,5242,604
Total Assets6,4716,8697,0026,8947,0097,0938,10810,04711,34613,05614,51716,16816,394

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +7014799561,0851,1051,1137907401,8851,1291,4051,895
Cash from Investing Activity +-378-541-482-263-276-483-1,191-1,932-1,771-1,810-1,687-1,900
Cash from Financing Activity +-28953-457-943-659-7876431,213-64715274-28
Net Cash Flow34-1017-121171-157242205034-7-33

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-1.00562.00712.00-1.000.000.000.00-2.00-2.00-2.00-3.00-3.00

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 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days293038485137353626212133
Inventory Days410363279340313272241270252342240209
Days Payable9993123133139130111143153198173211
Cash Conversion Cycle3403001942562251791651631251658731
Working Capital Days152218-16-8-4-423-12-11-22-34
ROCE %16%6%10%16%18%16%14%12%15%10%7%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters42.52%42.47%42.33%42.33%42.29%42.29%42.29%42.11%42.11%42.11%42.29%42.29%
FIIs8.71%8.15%7.63%6.86%6.63%7.14%7.55%7.95%7.85%7.94%7.43%7.38%
DIIs31.68%32.29%32.63%33.40%33.75%32.25%32.46%32.44%33.37%32.92%32.24%31.14%
Government3.39%3.39%3.39%3.39%3.39%3.39%3.39%3.39%3.39%3.39%3.39%3.39%
Public13.69%13.70%14.03%14.03%13.96%14.94%14.31%14.11%13.29%13.64%14.66%15.81%
No. of Shareholders43,40943,20551,39158,78357,80959,20654,63847,89747,10546,99356,32776,165

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak Flexicap Fund - Regular Plan8,000,0001.31669.161,154,4002024-12-02593%
Kotak Emerging Equity Fund - Regular Plan6,071,0831.04507.821,154,4002024-12-02425.91%
Quant Small Cap Fund2,737,7080.92226.151,154,4002024-12-02137.15%
SBI Contra Fund2,106,8750.51176.231,154,4002024-12-0282.51%
ICICI Prudential India Opportunities Fund1,741,1160.69145.641,154,4002024-12-0250.82%
SBI Magnum Midcap Fund1,728,3910.71144.571,154,4002024-12-0249.72%
Franklin India Prima Fund1,602,3341.06132.361,154,4002024-12-0238.8%
Quant Infrastructure Fund1,445,2002.91119.381,154,4002024-12-0225.19%
ICICI Prudential Multicap Fund1,179,3240.7698.641,154,4002024-12-022.16%
HSBC Value Fund1,154,4000.7296.561,154,4002024-12-020%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)15.7714.0039.0034.0026.00
Diluted EPS (Rs.)15.7714.0039.0034.0026.00
Cash EPS (Rs.)44.0135.8954.8147.4839.09
Book Value[Excl.RevalReserv]/Share (Rs.)306.45290.65280.38243.24212.52
Book Value[Incl.RevalReserv]/Share (Rs.)306.45290.65280.38243.24212.52
Revenue From Operations / Share (Rs.)396.80345.21254.07224.29228.75
PBDIT / Share (Rs.)67.8651.5655.7867.3049.71
PBIT / Share (Rs.)40.5130.1538.7652.1936.28
PBT / Share (Rs.)22.9219.9734.0048.4733.63
Net Profit / Share (Rs.)16.6514.4737.7832.3725.65
NP After MI And SOA / Share (Rs.)15.2313.3137.3033.2225.64
PBDIT Margin (%)17.1014.9321.9530.0021.73
PBIT Margin (%)10.208.7315.2523.2615.85
PBT Margin (%)5.775.7813.3821.6114.70
Net Profit Margin (%)4.194.1914.8714.4311.21
NP After MI And SOA Margin (%)3.833.8514.6814.8111.20
Return on Networth / Equity (%)4.974.5813.3113.6712.07
Return on Capital Employeed (%)7.786.198.8213.6210.96
Return On Assets (%)2.212.156.696.845.96
Long Term Debt / Equity (X)0.540.520.430.370.36
Total Debt / Equity (X)0.670.650.590.540.52
Asset Turnover Ratio (%)0.600.580.480.490.58
Current Ratio (X)0.560.610.610.600.67
Quick Ratio (X)0.310.320.310.350.39
Inventory Turnover Ratio (X)1.871.581.251.321.53
Dividend Payout Ratio (NP) (%)13.1422.560.009.0321.46
Dividend Payout Ratio (CP) (%)4.708.640.006.2114.08
Earning Retention Ratio (%)86.8677.440.0090.9778.54
Cash Earning Retention Ratio (%)95.3091.360.0093.7985.92
Interest Coverage Ratio (X)3.865.0711.7318.1216.24
Interest Coverage Ratio (Post Tax) (X)1.952.428.949.719.24
Enterprise Value (Cr.)23941.5222178.9221935.6226628.5114663.15
EV / Net Operating Revenue (X)2.552.723.655.032.72
EV / EBITDA (X)14.9318.2016.6416.7712.52
MarketCap / Net Operating Revenue (X)2.042.193.034.472.25
Retention Ratios (%)86.8577.430.0090.9678.53
Price / BV (X)2.652.602.754.132.42
Price / Net Operating Revenue (X)2.042.193.034.472.25
EarningsYield0.010.010.040.030.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of The Ramco Cements Ltd as of December 3, 2024 is: 1,520.27

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.

As of December 3, 2024, The Ramco Cements Ltd is Undervalued by 46.18% compared to the current share price 1,040.00

Intrinsic Value of The Ramco Cements Ltd as of December 3, 2024 is: 1,302.29

Calculation basis:

  • Intrinsic 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 intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 3, 2024, The Ramco Cements Ltd is Undervalued by 25.22% compared to the current share price 1,040.00

Last 5 Year EPS CAGR: -14.34%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -2.75, which is a positive sign.
  2. The company has higher reserves (4,667.77 cr) compared to borrowings (3,025.23 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (5.00 cr) and profit (554.77 cr) over the years.
  1. The stock has a low average ROCE of 12.33%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 185.83, 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 The Ramco Cements Ltd:
    1. Net Profit Margin: 4.19%
      • 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: 7.78% (Industry Average ROCE: 11.09%)
      • 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%: 4.97% (Industry Average ROE: 14.99%)
      • 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): 1.95
      • 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: 0.31
      • 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: 89.2 (Industry average Stock P/E: 22.92)
      • 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: 0.67
      • 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 - Qualitative Analysis

The Ramco Cements Ltd. is a Public Limited Listed company incorporated on 03/07/1957 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L26941TN1957PLC003566 and registration number is 003566. Currently Company is involved in the business activities of Manufacture of portland cement, aluminous cement, slag cement and similar hydraulic cement. Company’s Total Operating Revenue is Rs. 5979.98 Cr. and Equity Capital is Rs. 23.63 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
CementRamamandiram, Rajapalayam Tamil Nadu 626117ksn@ramcocements.co.in
http://www.ramcocements.in
Management
NamePosition Held
Mr. M F FarooquiChairperson
Mr. P R Venketrama RajaManaging Director
Justice(Retd) Chitra VenkataramanIndependent Director
Mr. M S KrishnanIndependent Director
Mr. C K RanganathanIndependent Director
Mr. Ajay Bhaskar BaligaIndependent Director
Mr. R DineshNon Exe.Non Ind.Director

FAQ

What is the latest intrinsic value of The Ramco Cements Ltd?

The latest intrinsic value of The Ramco Cements Ltd as on 03 December 2024 is ₹1520.27, which is 46.18% higher than the current market price of ₹1,040.00. The stock has a market capitalization of 24,593 Cr. and recorded a high/low of ₹1,058/700 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹7,122 Cr and total liabilities of ₹16,394 Cr.

What is the Market Cap of The Ramco Cements Ltd?

The Market Cap of The Ramco Cements Ltd is 24,593 Cr..

What is the current Stock Price of The Ramco Cements Ltd as on 03 December 2024?

The current stock price of The Ramco Cements Ltd as on 03 December 2024 is 1,040.

What is the High / Low of The Ramco Cements Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of The Ramco Cements Ltd stocks is 1,058/700.

What is the Stock P/E of The Ramco Cements Ltd?

The Stock P/E of The Ramco Cements Ltd is 89.2.

What is the Book Value of The Ramco Cements Ltd?

The Book Value of The Ramco Cements Ltd is 302.

What is the Dividend Yield of The Ramco Cements Ltd?

The Dividend Yield of The Ramco Cements Ltd is 0.24 %.

What is the ROCE of The Ramco Cements Ltd?

The ROCE of The Ramco Cements Ltd is 8.17 %.

What is the ROE of The Ramco Cements Ltd?

The ROE of The Ramco Cements Ltd is 5.63 %.

What is the Face Value of The Ramco Cements Ltd?

The Face Value of The Ramco Cements 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 The Ramco Cements 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