Ramco Industries Limited (RAMCOIND) AI Stock Analysis

• Market Cap: ₹22.14B
• Dividend Yield: 0.32%
• Average Volume (3M): 40.38K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 1.00
• 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: ₹283.00 ▼(-9.93% 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

Strong balance sheet

A very low debt-to-equity ratio and an 88.5% equity base provide a durable financial cushion. This conservative leverage profile supports capital spending, weathering construction-cycle downturns, and gives strategic flexibility to invest in capacity or distribution without heavy refinancing risk.

Improving profitability

Sustained revenue growth combined with margin expansion to an 11% net margin and ~31% gross margin indicates improving operational efficiency. These improvements suggest better pricing, cost control and scale benefits that are likely to support more durable earnings over the medium term.

Positive cash generation

Positive FCF growth and a 0.73 operating-cash-flow-to-net-income ratio show the business converts earnings to cash reasonably well. Reliable internal cash generation reduces dependence on external funding and supports working capital, maintenance capex, and incremental organic investment.

Negative Factors

Cash flow volatility

Although free cash flow improved, recurring variability in operating cash flow points to uneven cash conversion. Persistent volatility complicates capex and working-capital planning, forces higher liquidity buffers, and can undermine consistent funding for growth or dividends over the medium term.

Declining gross margin trend

A falling gross margin over multiple years suggests pressure from input costs or adverse product mix. If structural, continued margin degradation will erode operating leverage and require sustained price increases, cost restructuring, or higher volumes to maintain net profitability.

Low return on equity

An ROE of ~4.3% implies modest returns on shareholders' capital despite a strong equity base. Unless the company can materially boost margins, asset turnover, or pursue higher-return initiatives, shareholder return prospects will remain constrained relative to capital employed.

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 primarily makes money by manufacturing and selling fiber cement-based building materials. The main revenue stream is the sale of fiber cement sheets and allied products to (1) retail/distribution networks such as dealers, stockists, and building-material retailers, and (2) institutional and project customers such as contractors and industrial buyers purchasing in bulk for construction projects. Revenue is recognized from product sales (volumes shipped multiplied by realized selling prices), while profitability is driven by manufacturing efficiency, capacity utilization, and input-cost management (e.g., cement and fibers), along with freight and distribution costs. Any specific data on segment-wise revenue split, major customer concentration, or named strategic partnerships is null.

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	16.53B	16.50B	14.95B	14.52B	14.57B	12.09B
Gross Profit	6.84B	3.48B	4.77B	4.83B	5.57B	4.57B
EBITDA	2.18B	1.95B	1.67B	1.72B	2.34B	2.18B
Net Income	2.31B	1.81B	1.06B	1.24B	3.03B	2.79B
Balance Sheet
Total Assets	48.06B	47.83B	45.75B	44.65B	42.94B	39.68B
Cash, Cash Equivalents and Short-Term Investments	991.60M	877.55M	794.32M	601.47M	799.90M	643.29M
Total Debt	1.76B	2.58B	2.44B	3.10B	2.26B	1.55B
Total Liabilities	4.56B	5.50B	5.14B	5.81B	5.36B	4.84B
Stockholders Equity	43.51B	42.33B	40.61B	38.84B	37.59B	34.84B
Cash Flow
Free Cash Flow	805.90M	1.02B	936.81M	-1.21B	36.84M	1.30B
Operating Cash Flow	987.70M	1.32B	1.35B	-433.00M	883.31M	1.90B
Investing Cash Flow	-68.20M	-1.07B	-214.08M	-273.31M	-1.38B	-727.63M
Financing Cash Flow	-961.30M	-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: Neutral
• 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 286.14, above the 50-day MA of 301.80, and above the 200-day MA of 309.07, indicating a bearish trend. The MACD of -12.62 indicates Positive momentum. The RSI at 31.65 is Neutral, neither overbought nor oversold. The STOCH value of 23.67 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	₹22.14B	6.02	―	0.32%	3.75%	77.08%
SHREEPUSHK	68 Neutral	₹9.59B	17.66	―	0.52%	28.67%	50.12%
SOMANYCERA	62 Neutral	₹14.83B	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	₹21.79B	46.52	―	0.19%	10.61%	43.88%
NCLIND	49 Neutral	₹7.71B	17.17	―	1.52%	-16.46%	-21.60%
SAGCEM	48 Neutral	₹22.43B	-12.17	―	0.33%	3.34%	-112.79%