Why is The Ramco Cement falling/rising?

Sep 04 2025 09:14 PM IST
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As of 04-Sep, The Ramco Cements Ltd is currently priced at 1,090.00, reflecting a recent upward trend despite a monthly decline. The stock has shown strong year-to-date and annual returns, but concerns about long-term sustainability due to declining profits and high debt remain.
As of 04-Sep, The Ramco Cements Ltd is experiencing a price increase, currently at 1,090.00, reflecting a change of 3.15 (0.29%) upward. The stock has shown a strong performance recently, gaining 4.81% over the last six days and outperforming its sector by 0.58%. Despite a decline of 6.93% over the past month, the stock has delivered a year-to-date return of 13.00% and an impressive 29.82% over the past year, significantly outperforming the broader market, which has seen negative returns. The company recently declared positive quarterly results after four consecutive negative quarters, with substantial growth in profit before tax and profit after tax, alongside high institutional holdings that suggest confidence from more sophisticated investors.

In the broader market context, while the stock has performed well, it is essential to note that the benchmark index, Sensex, has only increased by 0.80% over the past week. The stock's recent gains come despite a backdrop of weak long-term fundamentals, including a negative compound annual growth rate in operating profits over the last five years and a high debt-to-EBITDA ratio. Although the stock is trading at a discount compared to its peers, the significant drop in profits over the past year raises concerns about its long-term sustainability, which could influence investor sentiment moving forward.
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