RAMCOCEM - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.7
| Stock Code | RAMCOCEM | Market Cap | 21,592 Cr. | Current Price | 914 ₹ | High / Low | 1,214 ₹ |
| Stock P/E | 114 | Book Value | 322 ₹ | Dividend Yield | 0.22 % | ROCE | 4.83 % |
| ROE | 1.56 % | Face Value | 1.00 ₹ | DMA 50 | 965 ₹ | DMA 200 | 1,012 ₹ |
| Chg in FII Hold | 0.06 % | Chg in DII Hold | 0.77 % | PAT Qtr | 5.24 Cr. | PAT Prev Qtr | 74.3 Cr. |
| RSI | 43.5 | MACD | -19.3 | Volume | 2,22,616 | Avg Vol 1Wk | 1,79,835 |
| Low price | 860 ₹ | High price | 1,214 ₹ | PEG Ratio | -2.29 | Debt to equity | 0.62 |
| 52w Index | 15.2 % | Qtr Profit Var | -37.2 % | EPS | 24.5 ₹ | Industry PE | 29.0 |
📊 Core Financials
Revenue Growth: Weak, with PAT collapsing (₹5.24 Cr vs ₹74.3 Cr).
Profit Margins: Thin margins, profitability under pressure.
Debt Ratios: Debt-to-equity 0.62, moderate leverage.
Cash Flows: Likely stressed due to declining profits.
Return Metrics: ROCE 4.83%, ROE 1.56% — very low efficiency.
💹 Valuation Indicators
P/E Ratio: 114, extremely high vs industry PE of 29.0.
P/B Ratio: ~2.84 (Price ₹914 / Book Value ₹322), moderately expensive.
PEG Ratio: -2.29, negative due to declining earnings.
Intrinsic Value: Fair value closer to ₹750–800, current price overvalued.
Dividend Yield: 0.22%, minimal.
🏢 Business Model & Competitive Advantage
Operates in cement manufacturing, serving infrastructure and housing demand.
Competitive edge: regional presence in South India, brand recognition.
Challenges: high input costs, weak profitability, and cyclical demand.
📈 Entry Zone & Long-Term Guidance
Entry Zone: ₹750–800 (value zone near intrinsic).
Long-Term Holding: Only suitable for patient investors; turnaround depends on cost efficiency and demand recovery.
✅ Positive
Backed by strong brand in cement industry.
FII (+0.06%) and DII (+0.77%) holdings increased.
Debt manageable at 0.62.
⚠️ Limitation
Extremely high P/E (114).
Weak ROE (1.56%) and ROCE (4.83%).
Dividend yield negligible (0.22%).
🚨 Company Negative News
PAT collapsed to ₹5.24 Cr from ₹74.3 Cr.
Profitability ratios deteriorating.
RSI at 43.5 indicates weak momentum.
🌟 Company Positive News
Institutional investors increasing stake.
Cement demand supported by infrastructure push.
Stock trading near support levels (DMA 50: ₹965, DMA 200: ₹1012).
🏭 Industry
Cement industry driven by housing, infrastructure, and government projects.
Industry PE ~29, RAMCOCEM trades at a steep premium.
Growth drivers: urbanization, infrastructure spending, rural housing demand.
📌 Conclusion
RAMCOCEM is a weakly positioned cement stock with collapsing profits, low returns, and stretched valuations. Despite institutional interest and industry demand, fundamentals remain poor. Entry advisable only near ₹750–800 for speculative positions. Long-term holding depends on cost efficiency and recovery in profitability.
Would you like me to compare RAMCOCEM directly with Ultratech Cement and Shree Cement to highlight relative strengths and valuations?