The Ramco Cements Ltd is Rated Hold by MarketsMOJO

Understanding the Current Rating

The 'Hold' rating assigned to The Ramco Cements Ltd indicates a neutral stance for investors, suggesting that the stock is expected to perform in line with the broader market or sector averages over the near term. This rating is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the stock’s investment potential.

Quality Assessment

As of 26 December 2025, The Ramco Cements Ltd exhibits below-average quality metrics. The company has experienced a negative compound annual growth rate (CAGR) of -5.22% in operating profits over the past five years, signalling challenges in sustaining long-term profitability growth. Additionally, the average Return on Equity (ROE) stands at 6.62%, which is modest and indicates limited efficiency in generating profits from shareholders’ funds. The firm’s debt servicing capability is also a concern, with a high Debt to EBITDA ratio of 3.42 times, reflecting elevated leverage and potential financial risk.

Valuation Considerations

The valuation of The Ramco Cements Ltd is currently considered expensive relative to its capital employed. The stock trades at an Enterprise Value to Capital Employed (EV/CE) ratio of 2.4, which is higher than the average for its peer group. Despite this, the stock price is trading at a discount compared to historical valuations of its sector peers, offering some valuation cushion. Investors should note that while the stock has delivered a year-to-date (YTD) return of 10.20% and a one-year return of 8.75%, the company’s profits have declined by 32.9% over the past year, which tempers the valuation optimism.

Financial Trend and Recent Performance

The financial trend for The Ramco Cements Ltd shows mixed signals. The latest quarterly results ending September 2025 reveal a significant improvement, with Profit Before Tax (PBT) excluding other income rising by 278.00% to ₹93.29 crores and Profit After Tax (PAT) increasing by 200.9% to ₹77.34 crores. These figures suggest a positive turnaround in operational performance in the short term. However, the longer-term trend remains subdued due to the negative growth in operating profits and profitability metrics.

Technical Outlook

The technical grade for The Ramco Cements Ltd is bullish, reflecting positive momentum in the stock price. Over the past month, the stock has gained 4.75%, and over three months, it has appreciated by 5.99%. The one-day change as of 26 December 2025 was +0.25%, indicating steady investor interest. This bullish technical stance supports the 'Hold' rating by suggesting that while the stock is not a strong buy, it is not showing signs of immediate weakness either.

Institutional Interest and Market Position

Institutional investors hold a significant 40.02% stake in The Ramco Cements Ltd, which is a positive indicator of confidence from well-resourced market participants who typically conduct thorough fundamental analysis. The company is classified as a small-cap stock within the Cement & Cement Products sector, which may imply higher volatility but also potential for growth if operational challenges are addressed.

What the Hold Rating Means for Investors

For investors, the 'Hold' rating on The Ramco Cements Ltd suggests maintaining existing positions rather than initiating new ones or exiting current holdings. The stock’s mixed fundamentals, expensive valuation relative to capital employed, but positive recent financial results and bullish technical indicators imply that the company is in a phase of cautious optimism. Investors should monitor upcoming quarterly results and sector developments closely to reassess the stock’s outlook.

Summary of Key Metrics as of 26 December 2025

The Ramco Cements Ltd’s key financial and market metrics as of today include:

• Mojo Score: 51.0 (Hold grade)


• Operating Profit CAGR (5 years): -5.22%


• Debt to EBITDA Ratio: 3.42 times


• Return on Equity (average): 6.62%


• Return on Capital Employed (ROCE): 5.4%


• Enterprise Value to Capital Employed: 2.4


• Stock Returns: 1D +0.25%, 1W +1.33%, 1M +4.75%, 3M +5.99%, 6M +1.47%, YTD +10.20%, 1Y +8.75%


• Institutional Holdings: 40.02%

These figures provide a comprehensive snapshot of the company’s current standing and help investors make informed decisions based on the latest available data.

Looking Ahead

While The Ramco Cements Ltd faces challenges in long-term profitability and valuation, the recent quarterly performance and positive technical signals offer some encouragement. Investors should weigh these factors carefully and consider the company’s sector dynamics and broader economic conditions before adjusting their portfolios.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →