RAMCOCEM - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 2.9

Here’s a comprehensive analysis of Ramco Cements Ltd (RAMCOCEM)

📊 Core Financials

Profitability & Growth

PAT improved to ₹19.8 Cr from ₹4.79 Cr — but still weak overall

EPS: ₹11.5 — modest for its valuation

ROE: 1.38%, ROCE: 4.77% — poor return metrics, indicating inefficient capital deployment

Qtr Profit Variation: -84.6% — sharp decline YoY

Balance Sheet & Leverage

Debt-to-equity: 0.63 — moderate leverage, manageable but worth monitoring

Dividend Yield: 0.17% — minimal, not attractive for income investors

💰 Valuation Metrics

Metric Value Interpretation

P/E Ratio 279 Extremely high — unjustified by earnings

P/B Ratio ~3.8 Premium valuation

PEG Ratio -5.42 Negative — indicates earnings contraction

Intrinsic Value Below CMP Stock appears significantly overvalued

🧠 Business Model & Competitive Edge

Core Business: Cement manufacturing with integrated plants, grinding units, and wind farms

Strengths

Established brand with strong southern market presence

Recent infrastructure expansions (e.g., railway siding, chemical plant)

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Challenges

Weak earnings and margin pressure

High valuation with low profitability

DII stake reduction suggests waning institutional confidence

📉 Technical & Sentiment Indicators

RSI: 66.4 — approaching overbought zone

MACD: 33.6 — bullish momentum

Volume above average — increased interest, possibly speculative

DMA 50 & 200: CMP above both — strong short-term trend

🎯 Entry Zone & Long-Term View

Suggested Entry Zone: ₹950–₹1,000 — closer to 200 DMA and better valuation support

Long-Term Holding: Not ideal at current levels. Wait for earnings stabilization and valuation correction. Suitable only for high-risk investors with long horizons.

Want to compare it with peers like Ultratech or Shree Cement to see how it stacks up in the sector?

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