Ramco Cements Limited (RAMCOCEM) AI Stock Analysis

• Market Cap: ₹256.25B
• Dividend Yield: 0.19%
• Average Volume (3M): 30.47K
• Price to Earnings (P/E): 68.8
• Beta (1Y): 0.82
• Revenue Growth: -2.61%
• EPS Growth: 34.66%
• Country: IN
• Employees: 3,647
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 3.20
• Shares Outstanding: 236,292,370
• 10 Day Avg. Volume: 46,369
• 30 Day Avg. Volume: 30,466
• PEG Ratio: -2.91
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 2.50
• P/FCF Ratio: 56.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹1,090.00 ▲(3.12% Upside)

The overall stock score of 62 reflects a stable financial performance with a solid balance sheet and operational efficiency. However, high valuation metrics and neutral technical indicators suggest caution. The absence of significant earnings call insights or corporate events leaves the focus on financial fundamentals and technical analysis.

Positive Factors

Operational Efficiency

The improvement in gross profit margin indicates effective cost management, enhancing the company's operational efficiency and long-term profitability.

Balance Sheet Strength

A moderate debt-to-equity ratio and strong equity base suggest financial stability, providing the company with resilience against economic fluctuations.

Cash Generation

Strong cash generation relative to net income supports liquidity and financial flexibility, enabling the company to fund operations and growth initiatives.

Negative Factors

Revenue Decline

The decline in revenue growth poses a challenge to market expansion and could pressure future earnings, impacting long-term growth prospects.

Net Profit Margin Pressure

A declining net profit margin indicates challenges in maintaining profitability, which could affect the company's ability to reinvest in growth and innovation.

Free Cash Flow Volatility

Volatility in free cash flow and high capital expenditures may strain liquidity, limiting the company's capacity to invest in strategic opportunities.

Ramco Cements Limited Business Overview & Revenue Model

Company Description

The Ramco Cements Limited manufactures and sells cement, ready mix concrete, and dry mortar products in India. It offers formulated blended cement, Portland Pozzolana cement, sulphate resisting, sleeper grade, super fast cement, ordinary Portland cement, and cement-based putty under the RAMCO brand. The company is also involved in the generation and sale of electricity from wind mills and thermal power plants. As of March 31, 2022, it operated a wind farm with an installed capacity of 125.95 MW comprising 127 wind electric generators. The Ramco Cements Limited also exports its products. The company was formerly known as Madras Cements Ltd. and changed its name to The Ramco Cements Limited in July 2013. The Ramco Cements Limited was incorporated in 1957 and is headquartered in Chennai, India.

How the Company Makes Money

Ramco Cements generates revenue primarily through the sale of cement products, which constitutes the bulk of its income. The company operates several integrated cement plants and grinding units, which allows it to maintain a strong production capacity and meet market demand. Key revenue streams include sales from various types of cement, ready-mix concrete, and allied products. Additionally, Ramco Cements benefits from strategic partnerships with construction companies and infrastructure developers, enabling it to secure large contracts and projects. The company also leverages its distribution network to enhance market reach and ensure efficient delivery of products, which contributes significantly to its overall earnings.

Ramco Cements Limited Financial Statement Overview

Summary

Ramco Cements Limited demonstrates a solid financial foundation with strengths in its balance sheet and operational efficiencies. Despite challenges in revenue growth and net profit margins, the company has managed to maintain stability and profitability. Cash flow management shows improvement, yet volatility in free cash flow warrants attention.

Income Statement

The company exhibits a stable income statement with a moderate growth trajectory. Gross profit margin has improved significantly in the last year to 60.23% from 41.52%, indicating effective cost management. However, the net profit margin has decreased to 3.18% from 3.85%, suggesting pressures on bottom-line profitability. Revenue growth has fluctuated over the years, with a decline of 8.45% in the last year. Nonetheless, EBIT and EBITDA margins have shown improvement, enhancing operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a solid equity base. The debt-to-equity ratio is 0.63, indicating a moderate level of leverage. Return on equity is relatively low at 3.66%, suggesting limited returns on shareholder investments. The equity ratio is robust at 45.56%, showcasing a strong capital structure. Overall, the company maintains a healthy balance sheet with manageable debt levels.

Cash Flow

Cash flow analysis shows some volatility, with free cash flow turning positive recently. Operating cash flow to net income ratio stands at 5.13, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.37, reflecting sufficient cash flow to cover net income. However, free cash flow growth has been inconsistent, and capital expenditures remain high, potentially impacting liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	84.99B	85.18B	93.76B	81.57B	60.04B	52.91B
Gross Profit	45.52B	45.30B	49.29B	40.17B	36.09B	35.34B
EBITDA	12.82B	12.38B	15.69B	11.91B	12.97B	15.63B
Net Income	3.21B	2.73B	3.60B	3.15B	8.81B	7.84B
Balance Sheet
Total Assets	0.00	163.29B	162.73B	145.95B	131.59B	114.55B
Cash, Cash Equivalents and Short-Term Investments	1.73B	2.09B	1.24B	1.63B	1.46B	1.08B
Total Debt	0.00	46.75B	49.37B	45.07B	39.50B	31.10B
Total Liabilities	-74.42B	88.87B	90.31B	77.27B	65.33B	57.17B
Stockholders Equity	74.42B	74.42B	72.38B	68.61B	66.19B	57.32B
Cash Flow
Free Cash Flow	0.00	3.75B	-170.10M	-3.54B	-6.82B	1.25B
Operating Cash Flow	0.00	13.99B	19.06B	14.12B	11.35B	18.92B
Investing Cash Flow	0.00	-5.42B	-19.11B	-16.94B	-18.16B	-17.79B
Financing Cash Flow	0.00	-7.82B	-280.30M	2.74B	7.15B	-636.40M

Ramco Cements Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1057.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RAMCOCEM, the sentiment is Positive. The current price of 1057.05 is below the 20-day moving average (MA) of 1064.91, above the 50-day MA of 1034.72, and above the 200-day MA of 1034.00, indicating a bullish trend. The MACD of 14.10 indicates Negative momentum. The RSI at 62.60 is Neutral, neither overbought nor oversold. The STOCH value of 70.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:RAMCOCEM.

Ramco Cements Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITDCEM	69 Neutral	₹119.75B	26.40	―	0.24%	9.20%	30.96%
INDIAGLYCO	65 Neutral	₹64.58B	22.99	―	0.47%	5.61%	33.63%
RAMCOCEM	62 Neutral	₹256.25B	68.82	―	0.19%	-2.61%	34.66%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JKLAKSHMI	61 Neutral	₹92.48B	19.07	―	0.82%	6.13%	31.60%
STARCEMENT	58 Neutral	₹86.82B	28.63	―	0.45%	18.13%	52.87%
NUVOCO	55 Neutral	₹124.24B	46.04	―	―	5.09%	458.10%

Ramco Cements Limited Corporate Events

Ramco Cements Secures Andhra Pradesh Nod to Mine Quartzite Under Existing Lease

The Ramco Cements Limited has received approval from the Government of Andhra Pradesh to include quartzite as an additional mineral under its existing limestone mining lease in Kalavataka and Kotapadu villages in Nandyal district. While the quantum of mineable quartzite reserves is yet to be determined, the company plans to use the extracted quartzite for manufactured sand and pozzolanic additives in the cement industry or other future industrial applications, potentially broadening its raw material base and opening new value-added product opportunities.