Ramco Industries Limited (RAMCOIND) AI Stock Analysis

• Market Cap: ₹24.16B
• Dividend Yield: 0.32%
• Average Volume (3M): 40.38K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 1.02
• Revenue Growth: 3.75%
• EPS Growth: 77.08%
• Country: IN
• Employees: 1,754
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction
• EPS (TTM): 12.94
• Shares Outstanding: 86,841,560
• 10 Day Avg. Volume: 9,405
• 30 Day Avg. Volume: 40,378
• PEG Ratio: 0.17
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 19.79
• 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: 69 Neutral
• Price Target: ₹305.00 ▼(-2.93% Downside)
• Action: Reiterated Date: 10/18/25
• Date: Action: Reiterated 10/18/25

Ramco Industries Limited demonstrates strong financial performance with consistent revenue growth and a robust balance sheet. Technical indicators suggest a lack of strong momentum, and valuation metrics indicate reasonable pricing but low dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Balance Sheet Strength

Ramco's extremely low leverage and high equity ratio give it durable financial flexibility. Conservative capital structure reduces refinancing risk, supports capex or distribution expansion without heavy borrowing, and provides a buffer through construction cycles.

Improved Profitability

Material margin improvement and a healthy gross margin indicate better pricing and/or cost control that can be sustained. Higher net margins translate into stronger internal cash generation, enabling reinvestment and resilience to input-cost swings.

Improving Cash Generation

Growing free cash flow and decent OCF-to-net-income conversion point to improving cash conversion ability. This strengthens capacity to fund maintenance capex, reduce debt or support targeted investments without depending on external financing if the trend persists.

Negative Factors

Cash Flow Volatility

Intermittent swings in operating cash flow reduce predictability of available capital for working capital, capex and returns. That volatility can force short-term borrowing in weaker periods and complicate multi-year investment planning for a manufacturing business.

Declining Gross Margin Trend

A multi-year drop in gross margin signals structural pressure—rising input costs or competitive pricing—that can erode profitability. If not addressed through efficiency or pricing, revenue growth may fail to convert into durable profit and free cash flow.

Low Return on Equity

ROE near 4.3% indicates modest returns on shareholders' capital despite low leverage. This suggests suboptimal asset turnover or capital allocation; sustained low ROE limits long-term shareholder value unless operational efficiency or higher-margin mix improves.

Ramco Industries Limited Business Overview & Revenue Model

Company Description

Ramco Industries Limited engages in the building product, textile, and power generation businesses in India. The company manufactures fiber cement sheets and calcium silicate boards; and various accessories and metal framing products. It also provides design and material consultancy, project execution, site quality assurance, and dry construction methods training services; and invests in securities. In addition, it operates 15 windmills with an installed capacity of 16.73 MW in Tirunelveli and Coimbatore Districts of Tamil Nadu; Chitradurga and Hassan Districts in Karnataka; and Kutch District in Gujarat. Ramco Industries Limited was incorporated in 1965 and is based in Chennai, India.

How the Company Makes Money

Ramco Industries Limited generates revenue through multiple channels, primarily from the sale of its core products in the cement and textile sectors. The company's cement division is a significant revenue driver, supplying to construction projects and infrastructure developments across India. Additionally, the textile segment contributes to earnings through the production of synthetic fibers and yarns, which are sold to manufacturers in various industries. The company also benefits from strategic partnerships and collaborations that enhance its market reach and operational efficiency. Furthermore, Ramco Industries invests in research and development to innovate and improve product offerings, which can lead to increased sales and market share.

Ramco Industries Limited Financial Statement Overview

Summary

Ramco Industries Limited shows consistent revenue growth and improved profit margins, with a strong balance sheet characterized by low leverage and a high equity ratio. However, cash flow volatility is a concern.

Income Statement

Ramco Industries Limited shows a consistent revenue growth with a strong gross profit margin of approximately 31.2% for 2025. The net profit margin has improved significantly from 7.1% in 2024 to 11% in 2025, indicating enhanced profitability. The EBIT and EBITDA margins also reflect stable operational efficiency. However, the decline in gross profit margin from 2022 to 2025 is a point of concern that could impact future profitability.

Balance Sheet

The company exhibits a strong balance sheet with a low debt-to-equity ratio of 0.06 in 2025, suggesting conservative leverage usage. The equity ratio stands robust at 88.5%, indicating a solid equity base. The return on equity has improved to 4.3% in 2025, though it remains relatively low, showing potential for enhanced returns on shareholder investment.

Cash Flow

Ramco Industries Limited has demonstrated a positive free cash flow growth of 9% from 2024 to 2025, indicating better cash management. The operating cash flow to net income ratio stands at 0.73 in 2025, reflecting decent cash generation relative to net income. However, fluctuations in operating cash flow over the years indicate some volatility in cash generation from core operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	16.37B	16.50B	14.95B	14.52B	14.57B	12.09B
Gross Profit	6.69B	3.48B	4.77B	4.83B	5.57B	4.57B
EBITDA	2.06B	1.95B	1.67B	1.72B	2.34B	2.18B
Net Income	2.07B	1.81B	1.06B	1.24B	3.03B	2.79B
Balance Sheet
Total Assets	0.00	47.83B	45.75B	44.65B	42.94B	39.68B
Cash, Cash Equivalents and Short-Term Investments	877.55M	877.55M	794.32M	601.47M	799.90M	643.29M
Total Debt	0.00	2.58B	2.44B	3.10B	2.26B	1.55B
Total Liabilities	-42.33B	5.50B	5.14B	5.81B	5.36B	4.84B
Stockholders Equity	42.33B	42.33B	40.61B	38.84B	37.59B	34.84B
Cash Flow
Free Cash Flow	0.00	1.02B	936.81M	-1.21B	36.84M	1.30B
Operating Cash Flow	0.00	1.32B	1.35B	-433.00M	883.31M	1.90B
Investing Cash Flow	0.00	-1.07B	-214.08M	-273.31M	-1.38B	-727.63M
Financing Cash Flow	0.00	-106.80M	-996.93M	538.37M	626.64M	-1.04B

Ramco Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 314.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RAMCOIND, the sentiment is Negative. The current price of 314.2 is above the 20-day moving average (MA) of 308.37, above the 50-day MA of 309.88, and above the 200-day MA of 308.41, indicating a bearish trend. The MACD of -7.16 indicates Positive momentum. The RSI at 27.92 is Positive, neither overbought nor oversold. The STOCH value of 31.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RAMCOIND.

Ramco Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAMCOIND	69 Neutral	₹24.16B	6.02	―	0.32%	3.75%	77.08%
SHREEPUSHK	68 Neutral	₹9.89B	17.66	―	0.52%	28.67%	50.12%
SOMANYCERA	62 Neutral	₹15.37B	22.77	―	0.71%	4.20%	-31.88%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MANGLMCEM	59 Neutral	₹23.96B	46.52	―	0.19%	10.61%	43.88%
NCLIND	49 Neutral	₹8.32B	17.17	―	1.52%	-16.46%	-21.60%
SAGCEM	48 Neutral	₹24.78B	-12.17	―	0.33%	3.34%	-112.79%