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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of The Ramco Cements Ltd

About the Company - The Ramco Cements Ltd

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 FarooquiChairman
Mr. P R Venketrama RajaManaging Director
Justice(Retd) Chitra VenkataramanIndependent Director
Mr. M S KrishnanIndependent Director
Mr. R S AgarwalIndependent Director
Mr. M B N RaoIndependent Director
Mr. M M VenkatachalamIndependent Director

The Ramco Cements Ltd. Share Price Update

Share PriceValue
Today₹900.00
Previous Day₹973.80

Basic Stock Data of The Ramco Cements Ltd

Market Cap 20,837 Cr.
Current Price 882
High / Low1,058/701
Stock P/E48.9
Book Value 294
Dividend Yield0.23 %
ROCE6.55 %
ROE5.14 %
Face Value 1.00

Data Source: screener.in

Competitors of The Ramco Cements Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sagar Cements Ltd 3,179 Cr. 243305/180104 1210.29 %6.70 %1.27 % 2.00
ACC Ltd 51,086 Cr. 2,7202,746/1,59230.5 7890.34 %10.0 %7.06 % 10.0
Prism Johnson Ltd 8,582 Cr. 170199/99.61,120 28.00.00 %0.86 %7.70 % 10.0
Orient Cement Ltd 5,244 Cr. 256294/10530.1 80.30.58 %12.0 %7.85 % 1.00
UltraTech Cement Ltd 2,86,205 Cr. 9,91410,526/6,99144.6 1,9450.38 %12.9 %9.63 % 10.0
Industry Average13.8 Cr13642.04203.860.32%8.49%6.7%6.6

The Ramco Cements Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales1,2571,3391,6311,2291,4931,5491,7091,7721,7842,0092,5702,2412,329
Expenses8159421,1828651,0991,3181,4141,4721,6011,7242,1571,9001,931
Operating Profit442397449364394231295301184285413341399
OPM %35%30%28%30%26%15%17%17%10%14%16%15%17%
Other Income86106871079912813
Interest271615242925334755617793117
Depreciation859096969899108106122136141148157
Profit before tax3382983482502741131641541697207108138
Tax %30%32%38%32%-89%27%24%27%28%31%26%27%27%
Net Profit23620121416951783124112116715279101
EPS in Rs10.008.549.097.1621.913.495.254.750.492.856.453.344.29

The Ramco Cements Ltd Quarterly Chart

The Ramco Cements Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales3,2543,8313,6843,6453,5733,9504,4065,1465,3685,2685,9808,1359,149
Expenses2,3152,8233,1202,9312,5012,7543,3054,1094,2313,7204,6956,9537,711
Operating Profit9391,0085647141,0721,1951,1011,0381,1381,5481,2851,1831,438
OPM %29%26%15%20%30%30%25%20%21%29%21%15%16%
Other Income32408687884436283735303742
Interest15917918919518210460527388113241348
Depreciation254281306250305284292299315355401504582
Profit before tax5575881543566738507857167871,140801474550
Tax %31%31%11%32%19%24%29%29%24%33%-11%27%
Net Profit385404138242542649556506601761893344400
EPS in Rs16.1816.965.7910.1822.7727.2723.5921.4725.5232.2637.7814.5416.93
Dividend Payout %15%18%17%15%13%11%13%14%10%9%8%14%

The Ramco Cements Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)4.94%-65.84%75.36%123.97%19.74%-14.33%-8.99%18.77%26.62%17.35%-61.48%
Change in YoY Net Profit Growth (%)0.00%-70.78%141.20%48.60%-104.23%-34.07%5.34%27.77%7.85%-9.28%-78.82%

The Ramco Cements Ltd Growth

Compounded Sales Growth
10 Years:8%
5 Years:13%
3 Years:15%
TTM:27%
Compounded Profit Growth
10 Years:-2%
5 Years:-9%
3 Years:-17%
TTM:35%
Stock Price CAGR
10 Years:18%
5 Years:7%
3 Years:-3%
1 Year:20%
Return on Equity
10 Years:12%
5 Years:12%
3 Years:11%
Last Year:5%

The Ramco Cements Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital24242424242424242424242424
Reserves2,0272,3472,4582,6213,0703,7184,0194,4374,8955,6036,5016,7706,913
Borrowings2,7102,6672,9102,7122,1241,4251,1131,6193,0323,1103,9504,5075,064
Other Liabilities1,2971,4341,4761,6451,6771,8431,9382,0292,0962,6092,5813,2163,547
Total Liabilities6,0586,4716,8697,0026,8947,0097,0938,10810,04711,34613,05614,51715,548
Fixed Assets4,1154,5944,6414,8764,9015,1835,2985,3766,0276,9577,75210,17410,667
CWIP5281573542631471201758531,8402,3553,0341,9872,378
Investments266266283356372148159175189201201202216
Other Assets1,1491,4551,5901,5081,4751,5571,4611,7051,9911,8332,0692,1532,286
Total Assets6,0586,4716,8697,0026,8947,0097,0938,10810,04711,34613,05614,51715,548

The Ramco Cements Ltd Reserves and Borrowings Chart

The Ramco Cements Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 8647014799561,0851,1051,1137907401,8851,1291,405
Cash from Investing Activity -552-378-541-482-263-276-483-1,191-1,932-1,771-1,810-1,687
Cash from Financing Activity -329-28953-457-943-659-7876431,213-64715274
Net Cash Flow-1834-1017-121171-157242205034-7

The Ramco Cements Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days232930384851373536262121
Inventory Days410410363279340313272241270252342240
Days Payable789993123133139130111143153198173
Cash Conversion Cycle35534030019425622517916516312516587
Working Capital Days11152218-16-8-4-423-12-11-22
ROCE %15%16%6%10%16%18%16%14%12%15%10%7%

The Ramco Cements Ltd Financial Efficiency Indicators Chart

The Ramco Cements Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters42.54%42.54%42.52%42.47%42.33%42.33%42.29%42.29%42.29%42.11%42.11%42.11%
FIIs8.26%8.64%8.71%8.15%7.63%6.86%6.63%7.14%7.55%7.95%7.85%7.94%
DIIs23.23%22.30%31.68%32.29%32.63%33.40%33.75%32.25%32.46%32.44%33.37%32.92%
Government3.39%3.39%3.39%3.39%3.39%3.39%3.39%3.39%3.39%3.39%3.39%3.39%
Public22.57%23.13%13.69%13.70%14.03%14.03%13.96%14.94%14.31%14.11%13.29%13.64%
No. of Shareholders36,41540,08143,40943,20551,39158,78357,80959,20654,63847,89747,10546,993

The Ramco Cements Ltd Shareholding Pattern Chart

No. of The Ramco Cements Ltd Shareholders

The Ramco Cements Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Kotak Flexicap Fund - Regular Plan80000001.83816.28
Kotak Emerging Equity Fund - Regular Plan56413041.49575.61
SBI Contra Fund21068751214.98
HSBC Midcap Fund19842002.2202.46
Canara Robeco Emerging Equities19711421.01201.13
SBI Magnum Midcap Fund17283911.14176.36
Axis Midcap Fund15276770.63155.88
Franklin India Prima Fund13023341.35132.88
HSBC Value Fund11544001.09117.79
Kotak Equity Opportunities Fund - Regular Plan11500000.66117.34

The Ramco Cements Ltd ROCE Trend

The Ramco Cements Ltd EPS Trend

The Ramco Cements Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)14.0039.0034.0026.0022.00
Diluted EPS (Rs.)14.0039.0034.0026.0022.00
Cash EPS (Rs.)35.8954.8147.4839.0934.27
Book Value[Excl.RevalReserv]/Share (Rs.)290.65280.38243.24212.52192.77
Book Value[Incl.RevalReserv]/Share (Rs.)290.65280.38243.24212.52192.77
Revenue From Operations / Share (Rs.)345.21254.07224.29228.75219.11
PBDIT / Share (Rs.)51.5655.7867.3049.7144.96
PBIT / Share (Rs.)30.1538.7652.1936.2832.23
PBT / Share (Rs.)19.9734.0048.4733.6330.48
Net Profit / Share (Rs.)14.4737.7832.3725.6521.54
NP After MI And SOA / Share (Rs.)13.3137.3033.2225.6421.68
PBDIT Margin (%)14.9321.9530.0021.7320.51
PBIT Margin (%)8.7315.2523.2615.8514.70
PBT Margin (%)5.7813.3821.6114.7013.90
Net Profit Margin (%)4.1914.8714.4311.219.83
NP After MI And SOA Margin (%)3.8514.6814.8111.209.89
Return on Networth / Equity (%)4.5813.3113.6712.0711.25
Return on Capital Employeed (%)6.198.8213.6210.9612.37
Return On Assets (%)2.156.696.845.966.22
Long Term Debt / Equity (X)0.520.430.370.360.15
Total Debt / Equity (X)0.650.590.540.520.31
Asset Turnover Ratio (%)0.580.480.490.580.67
Current Ratio (X)0.610.610.600.670.66
Quick Ratio (X)0.320.310.350.390.39
Inventory Turnover Ratio (X)1.581.251.321.531.48
Dividend Payout Ratio (NP) (%)22.560.009.0321.4613.85
Dividend Payout Ratio (CP) (%)8.640.006.2114.088.72
Earning Retention Ratio (%)77.440.0090.9778.5486.15
Cash Earning Retention Ratio (%)91.360.0093.7985.9291.28
Interest Coverage Ratio (X)5.0711.7318.1216.2420.60
Interest Coverage Ratio (Post Tax) (X)2.428.949.719.2410.67
Enterprise Value (Cr.)22178.9221935.6226628.5114663.1518687.61
EV / Net Operating Revenue (X)2.723.655.032.723.62
EV / EBITDA (X)18.2016.6416.7712.5217.64
MarketCap / Net Operating Revenue (X)2.193.034.472.253.36
Retention Ratios (%)77.430.0090.9678.5386.14
Price / BV (X)2.602.754.132.423.82
Price / Net Operating Revenue (X)2.193.034.472.253.36
EarningsYield0.010.040.030.040.02

The Ramco Cements Ltd Profitability Ratios (%)

The Ramco Cements Ltd Liquidity Ratios

The Ramco Cements Ltd Liquidity Ratios (%)

The Ramco Cements Ltd Interest Coverage Ratios (X)

The Ramco Cements Ltd Valuation Ratios

Fair Value / Intrinsic Value of The Ramco Cements Ltd

Fair Value: ₹740.66

The stock is overvalued by 16.03% compared to the current price ₹882

*Investments are subject to market risks

Strength and Weakness of The Ramco Cements Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of 1.00, which is a positive sign.
  2. The company has higher reserves (4,259.92 cr) compared to borrowings (2,841.77 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (4.54 cr) and profit (560.92 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 37.92 and average Dividend Yield of 15.56%.
  2. The stock has a low average ROCE of 12.92%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 212.83, which may not be favorable.

Should I Buy The Ramco Cements Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding 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: 6.19% (Industry Average ROCE: 15.04%)
      • 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): 2.42
      • 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: 0.32
      • 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: 48.9 (Industry average Stock P/E: 36.54)
      • 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: 0.65
      • 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 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