Ramco Cements Limited (RAMCOCEM) AI Stock Analysis

• Market Cap: ₹251.89B
• Dividend Yield: 0.19%
• Average Volume (3M): 18.13K
• Price to Earnings (P/E): 78.6
• Beta (1Y): 0.92
• Revenue Growth: -7.85%
• EPS Growth: -0.68%
• Country: IN
• Employees: 3,647
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 3.60
• Shares Outstanding: 236,292,370
• 10 Day Avg. Volume: 10,967
• 30 Day Avg. Volume: 18,131
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹931.17
• Price Target Upside: -12.65% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6

• Rating: 69 Neutral
• Price Target: ₹1,187.00 ▲(11.35% Upside)

The overall stock score is primarily driven by strong technical analysis indicators, showing bullish momentum, and a solid financial performance that provides stability despite some challenges. However, the high P/E ratio and low dividend yield significantly impact the valuation score, suggesting that the stock is expensive and offers limited value for income-focused investors.

Ramco Cements Limited Business Overview & Revenue Model

Company Description

Ramco Cements Limited (RAMCOCEM) is a prominent Indian cement manufacturer that operates primarily in the building materials sector. The company is part of the larger Ramco Group and is recognized for producing high-quality cement products, including Portland cement, ready-mix concrete, and dry mortar products. Ramco Cements serves a diverse customer base, including individual home builders, real estate developers, and infrastructure projects, with its extensive distribution network across India.

How the Company Makes Money

Ramco Cements Limited generates revenue primarily through the sale of cement and related building materials. The company operates several manufacturing plants strategically located across India, allowing efficient distribution and reduced transportation costs. Its revenue streams are largely driven by the domestic demand for construction and infrastructure development projects, which include residential, commercial, and industrial sectors. Additionally, Ramco Cements leverages its strong brand reputation and quality products to maintain competitive pricing. The company may also engage in strategic partnerships and collaborations to enhance its market presence and expand its product offerings, although specific partnership details are not provided.

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. Overall, the company is well-positioned but should focus on enhancing profitability and managing capital expenditures to support future growth.

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	Mar 2025	Mar 2023	Mar 2024	Mar 2022	Mar 2021
Income Statement
Total Revenue	85.60B	81.22B	93.49B	59.70B	52.58B
Gross Profit	51.56B	26.22B	38.82B	24.04B	24.76B
EBITDA	12.74B	12.18B	16.03B	13.02B	15.79B
Net Income	2.73B	3.15B	3.60B	8.81B	7.84B
Balance Sheet
Total Assets	163.29B	145.95B	162.73B	131.59B	114.55B
Cash, Cash Equivalents and Short-Term Investments	2.09B	1.63B	1.24B	1.46B	1.08B
Total Debt	46.75B	45.07B	49.37B	39.50B	31.10B
Total Liabilities	88.87B	77.27B	90.31B	65.33B	57.17B
Stockholders Equity	74.42B	68.61B	72.38B	66.19B	57.32B
Cash Flow
Free Cash Flow	3.75B	-3.54B	-170.10M	-6.82B	1.25B
Operating Cash Flow	13.99B	14.12B	19.06B	11.35B	18.92B
Investing Cash Flow	-5.42B	-16.94B	-19.11B	-18.16B	-17.79B
Financing Cash Flow	-7.82B	2.74B	-280.30M	7.15B	-636.40M

Ramco Cements Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1066.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RAMCOCEM, the sentiment is Neutral. The current price of 1066 is below the 20-day moving average (MA) of 1141.05, below the 50-day MA of 1100.25, and above the 200-day MA of 969.36, indicating a neutral trend. The MACD of -10.34 indicates Positive momentum. The RSI at 37.92 is Neutral, neither overbought nor oversold. The STOCH value of 18.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:RAMCOCEM.

Ramco Cements Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JKLAKSHMI	73 Outperform	₹105.70B	27.88		0.72%	-3.81%	-18.23%
RAMCOCEM	69 Neutral	₹251.89B	78.59		0.19%	-7.85%	-0.68%
ITDCEM	65 Neutral	₹131.90B	32.18		0.26%	11.99%	27.39%
STARCEMENT	62 Neutral	₹116.36B	49.20		―	14.59%	1.56%
NUVOCO	60 Neutral	₹161.26B	105.98		―	0.27%	12.09%
INDIAGLYCO	54 Neutral	₹49.91B	20.47		0.50%	7.46%	33.79%
Sector *	44 Neutral	C$925.84M	-8.85	-0.23%	2.68%	24.44%	-41.96%

Ramco Cements Limited Corporate Events

Ramco Cements to Optimize Financing with New Securities Issuance

Ramco Cements Limited has announced that its upcoming board meeting will discuss the issuance of Non-Convertible Debentures and Commercial Papers, without increasing existing borrowing limits. This strategic move aims to capitalize on reduced interest rates, enhancing the company’s financial operations and potentially benefiting stakeholders by optimizing cost-effective financing.