The Ramco Cements Ltd (RAMCOCEM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

JK Lakshmi Cem.

The Ramco Cement

Shree Cement

Star Cement

India Cements

ACC

J K Cements

Dalmia BharatLtd

Ambuja Cements

Nuvoco Vistas

JSW Cement

Why is The Ramco Cements Ltd ?

Weak Long Term Fundamental Strength with a -9.07% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.42 times
The company has been able to generate a Return on Equity (avg) of 6.62% signifying low profitability per unit of shareholders funds

With ROCE of 5.4, it has a Expensive valuation with a 2.1 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 4.05%, its profits have fallen by -3%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Cement & Cement Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is The Ramco Cement for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

The Ramco Cement

4.04%

0.15

27.08%

Sensex

-4.72%

-0.36

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.78%

EBIT Growth (5y)

-9.07%

EBIT to Interest (avg)

3.91

Debt to EBITDA (avg)

3.33

Net Debt to Equity (avg)

0.61

Sales to Capital Employed (avg)

0.67

Tax Ratio

23.36%

Dividend Payout Ratio

16.41%

Pledged Shares

22.05%

Institutional Holding

39.51%

ROCE (avg)

7.69%

ROE (avg)

6.62%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

109

Industry P/E

Price to Book Value

2.71

EV to EBIT

38.58

EV to EBITDA

18.09

EV to Capital Employed

2.06

EV to Sales

2.84

PEG Ratio

Dividend Yield

0.23%

ROCE (Latest)

5.43%

ROE (Latest)

2.45%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

PAT(Q)

At Rs 3.72 cr has Grown at 138.0%

DEBT-EQUITY RATIO(HY)

Lowest at 0.62 times

EPS(Q)

Highest at Rs 16.32

-5What is not working for the Company

PBT LESS OI(Q)

Lowest at Rs -13.11 cr.

NON-OPERATING INCOME(Q)

is 422.11 % of Profit Before Tax (PBT

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Here's what is working for The Ramco Cement

Profit After Tax (PAT) - Quarterly

At Rs 3.72 cr has Grown at 138.0%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 16.32

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Lowest at 0.62 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for The Ramco Cement

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -13.11 cr has Fallen at -58.72%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -13.11 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 422.11 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Non Operating Income - Quarterly

Highest at Rs 17.18 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income