⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
RAMCOCEM - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.7
| Stock Code | RAMCOCEM | Market Cap | 23,248 Cr. | Current Price | 985 ₹ | High / Low | 1,214 ₹ |
| Stock P/E | 123 | Book Value | 322 ₹ | Dividend Yield | 0.20 % | ROCE | 4.83 % |
| ROE | 1.56 % | Face Value | 1.00 ₹ | DMA 50 | 1,074 ₹ | DMA 200 | 1,046 ₹ |
| Chg in FII Hold | -0.17 % | Chg in DII Hold | -0.33 % | PAT Qtr | 5.24 Cr. | PAT Prev Qtr | 74.3 Cr. |
| RSI | 30.5 | MACD | -39.0 | Volume | 1,39,771 | Avg Vol 1Wk | 2,25,843 |
| Low price | 841 ₹ | High price | 1,214 ₹ | PEG Ratio | -2.47 | Debt to equity | 0.62 |
| 52w Index | 38.7 % | Qtr Profit Var | -37.2 % | EPS | 24.5 ₹ | Industry PE | 28.2 |
📊 Financials
- Revenue Growth: Weak, PAT dropped sharply (5.24 Cr vs 74.3 Cr)
- Profit Margins: EPS at 24.5 ₹, but margins under pressure
- Debt Ratios: Debt-to-equity at 0.62, moderate leverage
- Cash Flows: Likely strained due to declining profits
- Return Metrics: ROCE 4.83% and ROE 1.56% show poor efficiency
💹 Valuation
- P/E Ratio: 123, far above industry average (28.2), indicating overvaluation
- P/B Ratio: ~3.05 (Current Price / Book Value), moderate
- PEG Ratio: -2.47, reflecting weak growth prospects
- Intrinsic Value: Overvalued given declining profitability
🏢 Business Model & Health
- Business Model: Cement manufacturing, cyclical and dependent on construction demand
- Competitive Advantage: Established brand, but limited compared to larger peers
- Overall Health: Financially stressed with declining profits and weak returns
🎯 Entry Zone Recommendation
- Entry Zone: Speculative investors may consider 850–900 ₹ range (close to support)
- Long-Term Holding: Risky; only viable if profitability improves and debt is managed
✅ Positive
- EPS remains positive despite profit decline
- Established brand presence in cement industry
- Moderate debt-to-equity ratio compared to peers
⚠️ Limitation
- Extremely high P/E ratio (123) vs industry average (28.2)
- Weak ROCE (4.83%) and ROE (1.56%)
- Stock trading below DMA 50 and DMA 200, showing bearish trend
📉 Company Negative News
- Quarterly profit dropped significantly (5.24 Cr vs 74.3 Cr)
- FII holdings decreased (-0.17%) and DII holdings decreased (-0.33%)
- Technical indicators (RSI 30.5, MACD -39.0) suggest weak momentum
📈 Company Positive News
- EPS remains positive at 24.5 ₹
- Industry demand outlook remains supportive for cement sector
🏭 Industry
- Cement industry P/E: 28.2, much lower than RAMCOCEM’s valuation
- Sector demand driven by infrastructure and housing projects
🔎 Conclusion
- RAMCOCEM is overvalued with weak profitability and poor efficiency metrics
- Entry near 850–900 ₹ may offer speculative opportunity
- Long-term holding is risky unless profitability improves; stronger peers may provide better investment options