The Ramco Cements Receives 'Sell' Rating from MarketsMOJO, Poor Growth and Declining Profits Raise Concerns

The Ramco Cements, a leading player in the cement industry, has recently received a 'Sell' rating from MarketsMOJO on November 5, 2024. This downgrade comes as a result of poor long-term growth, with the company's operating profit only growing at an annual rate of 0.59% over the last 5 years.

In addition, the company's financial results for June 2024 have shown a decline in profits, with a -50.1% drop in PAT(Q) and a lowest ever OPERATING PROFIT TO INTEREST (Q) ratio of 2.83 times. The DEBTORS TURNOVER RATIO(HY) has also hit a low of 10.96 times.

Furthermore, The Ramco Cements has underperformed the market in the last year, with negative returns of -11.12% compared to the market's 32.67% returns (BSE 500). However, the stock is currently in a Mildly Bullish range, with multiple technical indicators such as MACD, KST, and OBV showing a bullish trend.

Despite these factors, the stock is trading at a fair valuation with a ROCE of 7.6 and an Enterprise value to Capital Employed ratio of 2.1. It is also currently trading at a discount compared to its average historical valuations. Additionally, while the stock has generated negative returns in the past year, its profits have actually increased by 15.3%, resulting in a PEG ratio of 4.2.

One positive aspect for The Ramco Cements is its high institutional holdings at 40.86%. These investors have the resources and capability to thoroughly analyze the fundamentals of companies, making their investment decisions more reliable.

In conclusion, while The Ramco Cements may have some positive indicators, the recent downgrade to 'Sell' by MarketsMOJO and the company's poor long-term growth and financial results suggest caution for potential investors.