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Ramco Cements

NSEI:RAMCOCEM
Snowflake Description

Acceptable track record with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RAMCOCEM
NSEI
₹117B
Market Cap
  1. Home
  2. IN
  3. Materials
Company description

The Ramco Cements Limited manufactures and sells cement and cementious materials in India. The last earnings update was 66 days ago. More info.


Add to Portfolio Compare Print
  • Ramco Cements has significant price volatility in the past 3 months.
RAMCOCEM Share Price and Events
7 Day Returns
-6.4%
NSEI:RAMCOCEM
-3.9%
IN Basic Materials
-3.9%
IN Market
1 Year Returns
-37.6%
NSEI:RAMCOCEM
-33.3%
IN Basic Materials
-32.2%
IN Market
RAMCOCEM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ramco Cements (RAMCOCEM) -6.4% -35.7% -37.7% -37.6% -29.7% 45.9%
IN Basic Materials -3.9% -30.5% -31% -33.3% -33.5% -12.7%
IN Market -3.9% -26.8% -31.7% -32.2% -23.8% -14.9%
1 Year Return vs Industry and Market
  • RAMCOCEM underperformed the Basic Materials industry which returned -33.3% over the past year.
  • RAMCOCEM underperformed the Market in India which returned -32.2% over the past year.
Price Volatility
RAMCOCEM
Industry
5yr Volatility vs Market
Related Companies

RAMCOCEM Value

 Is Ramco Cements undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ramco Cements to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ramco Cements.

NSEI:RAMCOCEM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 13.9%
Perpetual Growth Rate 10-Year IN Government Bond Rate 6.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:RAMCOCEM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 6.5%
Equity Risk Premium S&P Global 7.9%
Basic Materials Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.813 (1 + (1- 35%) (20.94%))
0.949
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.95
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 6.48% + (0.949 * 7.85%)
13.93%

Discounted Cash Flow Calculation for NSEI:RAMCOCEM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ramco Cements is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NSEI:RAMCOCEM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 13.93%)
2020 -1,881.00 Analyst x1 -1,651.05
2021 -1,572.00 Analyst x2 -1,211.15
2022 7,519.00 Analyst x2 5,084.84
2023 8,123.21 Est @ 8.04% 4,821.89
2024 8,738.07 Est @ 7.57% 4,552.78
2025 9,370.91 Est @ 7.24% 4,285.64
2026 10,028.15 Est @ 7.01% 4,025.57
2027 10,715.43 Est @ 6.85% 3,775.62
2028 11,437.81 Est @ 6.74% 3,537.48
2029 12,199.92 Est @ 6.66% 3,311.92
Present value of next 10 years cash flows ₹30,533.00
NSEI:RAMCOCEM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₹12,199.92 × (1 + 6.48%) ÷ (13.93% – 6.48%)
₹174,432.67
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹174,432.67 ÷ (1 + 13.93%)10
₹47,353.37
NSEI:RAMCOCEM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹30,533.00 + ₹47,353.37
₹77,886.37
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹77,886.37 / 235.58
₹330.62
NSEI:RAMCOCEM Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹330.62
Current discount Discount to share price of ₹473.85
= -1 x (₹473.85 - ₹330.62) / ₹330.62
-43.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Ramco Cements is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ramco Cements's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ramco Cements's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:RAMCOCEM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in INR ₹27.44
NSEI:RAMCOCEM Share Price ** NSEI (2020-04-03) in INR ₹473.85
India Basic Materials Industry PE Ratio Median Figure of 50 Publicly-Listed Basic Materials Companies 10.18x
India Market PE Ratio Median Figure of 2,614 Publicly-Listed Companies 9.41x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ramco Cements.

NSEI:RAMCOCEM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:RAMCOCEM Share Price ÷ EPS (both in INR)

= 473.85 ÷ 27.44

17.27x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ramco Cements is overvalued based on earnings compared to the IN Basic Materials industry average.
  • Ramco Cements is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Ramco Cements's expected growth come at a high price?
Raw Data
NSEI:RAMCOCEM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.27x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
19%per year
India Basic Materials Industry PEG Ratio Median Figure of 14 Publicly-Listed Basic Materials Companies 0.81x
India Market PEG Ratio Median Figure of 400 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

NSEI:RAMCOCEM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.27x ÷ 19%

0.91x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ramco Cements is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Ramco Cements's assets?
Raw Data
NSEI:RAMCOCEM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in INR ₹195.82
NSEI:RAMCOCEM Share Price * NSEI (2020-04-03) in INR ₹473.85
India Basic Materials Industry PB Ratio Median Figure of 58 Publicly-Listed Basic Materials Companies 0.61x
India Market PB Ratio Median Figure of 3,613 Publicly-Listed Companies 0.63x
NSEI:RAMCOCEM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:RAMCOCEM Share Price ÷ Book Value per Share (both in INR)

= 473.85 ÷ 195.82

2.42x

* Primary Listing of Ramco Cements.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ramco Cements is overvalued based on assets compared to the IN Basic Materials industry average.
X
Value checks
We assess Ramco Cements's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Basic Materials industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Basic Materials industry average (and greater than 0)? (1 check)
  5. Ramco Cements has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

RAMCOCEM Future Performance

 How is Ramco Cements expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ramco Cements expected to grow at an attractive rate?
  • Ramco Cements's earnings growth is expected to exceed the low risk savings rate of 6.5%.
Growth vs Market Checks
  • Ramco Cements's earnings growth is positive but not above the India market average.
  • Ramco Cements's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:RAMCOCEM Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:RAMCOCEM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 19%
NSEI:RAMCOCEM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 13.1%
India Basic Materials Industry Earnings Growth Rate Market Cap Weighted Average 17.6%
India Basic Materials Industry Revenue Growth Rate Market Cap Weighted Average 8.7%
India Market Earnings Growth Rate Market Cap Weighted Average 19.2%
India Market Revenue Growth Rate Market Cap Weighted Average 8.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:RAMCOCEM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:RAMCOCEM Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 71,631 14,926 9,459 5
2021-03-31 63,183 12,681 8,062 6
2020-04-04
2020-03-31 55,047 10,850 6,565 4
NSEI:RAMCOCEM Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-12-31 55,304 6,260
2019-09-30 54,596 8,310 6,289
2019-06-30 53,278 5,770
2019-03-31 51,623 7,926 5,107
2018-03-31 44,251 11,242 5,642
2017-03-31 39,732 11,174 6,627

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ramco Cements's earnings are expected to grow by 19% yearly, however this is not considered high growth (20% yearly).
  • Ramco Cements's revenue is expected to grow by 13.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:RAMCOCEM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Ramco Cements Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:RAMCOCEM Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 40.15 48.90 28.00 4.00
2021-03-31 34.36 40.00 22.90 5.00
2020-04-04
2020-03-31 27.73 30.00 26.10 4.00
NSEI:RAMCOCEM Past Financials Data
Date (Data in INR Millions) EPS *
2019-12-31 27.44
2019-09-30 27.37
2019-06-30 25.22
2019-03-31 22.39
2018-03-31 24.62
2017-03-31 28.78

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Ramco Cements is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Ramco Cements's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ramco Cements has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

RAMCOCEM Past Performance

  How has Ramco Cements performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ramco Cements's growth in the last year to its industry (Basic Materials).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ramco Cements's year on year earnings growth rate has been positive over the past 5 years.
  • Ramco Cements's 1-year earnings growth exceeds its 5-year average (19.5% vs 14.8%)
  • Ramco Cements's earnings growth has not exceeded the IN Basic Materials industry average in the past year (19.5% vs 21.9%).
Earnings and Revenue History
Ramco Cements's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ramco Cements Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:RAMCOCEM Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 55,304.40 6,259.70 16,851.90
2019-09-30 54,595.80 6,289.30 16,492.00
2019-06-30 53,278.30 5,769.80 16,348.80
2019-03-31 51,623.40 5,107.20 16,359.80
2018-03-31 44,250.70 5,641.80 13,321.10
2017-03-31 39,732.00 6,627.40 11,015.60
2016-03-31 36,217.40 5,452.30 3,131.00
2015-12-31 36,909.40 4,465.00 11,146.00
2015-09-30 36,653.70 3,531.20 11,473.90
2015-06-30 37,139.40 3,052.90 11,884.40
2015-03-31 37,169.80 2,461.30 3,280.70
2014-12-31 36,544.60 1,536.10 12,890.50
2014-09-30 37,102.50 1,551.90 12,960.90
2014-06-30 36,874.80 812.10 12,853.50
2014-03-31 37,199.20 1,145.50 12,429.60
2013-12-31 37,127.00 1,764.00 12,482.20
2013-09-30 37,329.80 2,348.70 12,263.10
2013-06-30 38,164.50 3,494.90 11,981.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Ramco Cements has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Ramco Cements used its assets more efficiently than the IN Basic Materials industry average last year based on Return on Assets.
  • Ramco Cements's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Ramco Cements's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Basic Materials industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ramco Cements has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

RAMCOCEM Health

 How is Ramco Cements's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ramco Cements's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ramco Cements's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Ramco Cements's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Ramco Cements's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ramco Cements Company Filings, last reported 3 months ago.

NSEI:RAMCOCEM Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 48,248.20 24,506.10 2,243.10
2019-09-30 48,248.20 24,506.10 2,243.10
2019-06-30 45,417.00 17,353.20 639.50
2019-03-31 45,417.00 17,353.20 639.50
2018-03-31 41,166.30 11,739.00 890.40
2017-03-31 37,974.00 14,830.10 833.40
2016-03-31 31,338.40 22,113.90 911.30
2015-12-31 28,617.10 26,960.90 287.00
2015-09-30 28,617.10 26,960.90 287.00
2015-06-30 26,262.30 27,341.60 628.60
2015-03-31 26,262.30 27,341.60 628.60
2014-12-31 25,634.10 30,421.00 312.90
2014-09-30 25,634.10 30,421.00 312.90
2014-06-30 24,591.50 29,288.00 454.00
2014-03-31 24,591.50 29,101.70 454.00
2013-12-31 24,578.80 29,309.30 556.30
2013-09-30 24,578.80 29,309.30 556.30
2013-06-30 23,707.60 26,670.50 539.60
  • Ramco Cements's level of debt (50.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (118.5% vs 50.8% today).
  • Debt is well covered by operating cash flow (33.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 17.1x coverage).
X
Financial health checks
We assess Ramco Cements's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ramco Cements has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

RAMCOCEM Dividends

 What is Ramco Cements's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.63%
Current annual income from Ramco Cements dividends. Estimated to be 0.8% next year.
If you bought ₹2,000 of Ramco Cements shares you are expected to receive ₹13 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Ramco Cements's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.96%).
  • Ramco Cements's dividend is below the markets top 25% of dividend payers in India (4.06%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:RAMCOCEM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
India Basic Materials Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 0.8%
India Market Average Dividend Yield Market Cap Weighted Average of 1419 Stocks 2%
India Minimum Threshold Dividend Yield 10th Percentile 0.4%
India Bottom 25% Dividend Yield 25th Percentile 1%
India Top 25% Dividend Yield 75th Percentile 4.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:RAMCOCEM Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 3.98 5.00
2021-03-31 3.57 5.00
2020-04-04
2020-03-31 3.50 5.00
NSEI:RAMCOCEM Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-07-09 3.000 0.406
2019-05-22 3.000 0.377
2018-06-29 3.000 0.457
2018-05-23 3.000 0.406
2017-05-30 3.000 0.410
2016-07-04 3.000 0.492
2016-05-20 3.000 0.569
2015-05-29 1.500 0.409
2014-07-01 1.000 0.315
2014-05-22 1.000 0.353
2013-05-30 3.000 1.625
2013-02-13 2.500 1.020
2012-11-05 1.500 0.670
2012-08-06 2.500 1.352
2012-03-21 2.000 1.337
2011-08-10 1.250 1.152
2010-05-24 2.000 2.009
2010-01-15 3.000 2.578
2009-10-27 3.000 2.662
2009-05-29 2.000 1.820

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Ramco Cements's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (9.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (9.3x coverage).
X
Income/ dividend checks
We assess Ramco Cements's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ramco Cements afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ramco Cements has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

RAMCOCEM Management

 What is the CEO of Ramco Cements's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Arrakundal Velayutha Dharmakrishnan
COMPENSATION ₹133,118,303
AGE 62
TENURE AS CEO 8 years
CEO Bio

Shri Arrakundal Velayutha Raja Dharmakrishnan, B.Com, ACA has been Chief Executive Officer at Madras Cements Ltd., since April 1, 2012 and served as its Executive Director of Finance. Shri Dharmakrishnan serves as a Non Executive Director of Rajapalayam Mills Ltd. and served as its Additional Director since January 16, 2008. He has been a Non-Executive Director of Ramco Systems Limited since January 31, 2008. He served as Director of The Ramco Cements Limited. He serves as a Director of On-Time Transport Company Limited. He has specialized knowledge and rich experience in Finance and Taxation matters. Shri Dharmakrishnan is a Member of Institute of Chartered Accountants of India.

CEO Compensation
  • Arrakundal Velayutha's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Arrakundal Velayutha's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Ramco Cements management team in years:

5.4
Average Tenure
59.5
Average Age
  • The average tenure for the Ramco Cements management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Poosapadi Ramasubrahmaneya Venketrama Raja

TITLE
Chairman & MD
COMPENSATION
₹373M
AGE
60
TENURE
2.8 yrs

Arrakundal Velayutha Dharmakrishnan

TITLE
Chief Executive Officer
COMPENSATION
₹133M
AGE
62
TENURE
8 yrs

S. Vaithiyanathan

TITLE
Chief Financial Officer
COMPENSATION
₹13M
AGE
54

Raghuram Devarakonda

TITLE
Chief Operating Officer
AGE
51
TENURE
2.8 yrs

K. Selvanayagam

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹10M
AGE
60

Balaji Moorthy

TITLE
Executive President of Marketing
AGE
68

M. Saikumar

TITLE
Senior Vice President of HRD
AGE
59

R. Ramakrishnan

TITLE
President of Marketing
AGE
61

Ravi Natarajan

TITLE
President of Manufacturing
AGE
59
TENURE
14.7 yrs

M. Srinivasan

TITLE
President of Manufacturing
COMPENSATION
₹24M
AGE
57
Board of Directors Tenure

Average tenure and age of the Ramco Cements board of directors in years:

5.1
Average Tenure
66
Average Age
  • The tenure for the Ramco Cements board of directors is about average.
Board of Directors

Radhey Agarwal

TITLE
Non Executive Independent Director
COMPENSATION
₹830K
AGE
77
TENURE
13.8 yrs

Poosapadi Ramasubrahmaneya Venketrama Raja

TITLE
Chairman & MD
COMPENSATION
₹373M
AGE
60
TENURE
2.8 yrs

Muthiah Venkatachalam

TITLE
Non Executive Independent Director
COMPENSATION
₹675K
AGE
61
TENURE
6.5 yrs

Mandavilli Bhaskara Rao

TITLE
Non-Executive Independent Director
COMPENSATION
₹790K
AGE
71
TENURE
10.7 yrs

Chitra Venkataraman

TITLE
Independent Director
COMPENSATION
₹605K
TENURE
5.1 yrs

Farooqui Mohammed

TITLE
Independent Director
COMPENSATION
₹525K
TENURE
2.7 yrs

M. Krishnan

TITLE
Additional Independent Director
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
12. Nov 19 Sell Sri Vishnu Shankar Mills Limited Company 11. Nov 19 11. Nov 19 -130,000 ₹795.00 ₹-103,350,400
28. Sep 19 Sell Sri Vishnu Shankar Mills Limited Company 27. Sep 19 27. Sep 19 -68,000 ₹760.03 ₹-51,681,779
X
Management checks
We assess Ramco Cements's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ramco Cements has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

RAMCOCEM News

Simply Wall St News

The Ramco Cements Limited (NSE:RAMCOCEM) Earns A Nice Return On Capital Employed

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

The Ramco Cements Limited (NSE:RAMCOCEM): Does The Earnings Decline Make It An Underperformer?

When The Ramco Cements Limited (NSE:RAMCOCEM) released its most recent earnings update (31 March 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … RAMCOCEM's trailing twelve-month earnings (from 31 March 2018) of ₹5.6b has. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 27%, indicating the rate at which RAMCOCEM is growing has slowed down

Simply Wall St -

What Should Investors Know About The Ramco Cements Limited's (NSE:RAMCOCEM) Growth?

After The Ramco Cements Limited's (NSE:RAMCOCEM) earnings announcement in March 2018,. … with profits predicted to increase by 9.75% next year … the past 5-year average growth rate of 7.82%

Simply Wall St -

The Ramco Cements Limited (NSE:RAMCOCEM): Exploring Free Cash Flows

I will take you through Ramco Cements’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Free cash flow (FCF) is the amount of cash Ramco Cements has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations. … There are two methods I will use to evaluate the quality of Ramco Cements’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

The Ramco Cements Limited (NSE:RAMCOCEM): Assessing Capital Returns

This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … To understand Ramco Cements’s capital returns we will look at a useful metric called return on capital employed. … Calculating Return On Capital Employed for RAMCOCEM

Simply Wall St -

What You Must Know About The Ramco Cements Limited's (NSE:RAMCOCEM) Major Investors

I am going to take a deep dive into The Ramco Cements Limited’s (NSE:RAMCOCEM) most recent ownership structure, not a frequent subject of discussion among individual investors. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … Therefore, it is beneficial for us to examine RAMCOCEM's ownership structure in more detail.

Simply Wall St -

A Look At The Intrinsic Value Of The Ramco Cements Limited (NSE:RAMCOCEM)

Today I will be providing a simple run through of a valuation method used to estimate the attractiveness of The Ramco Cements Limited (NSE:RAMCOCEM) as an investment opportunity. … by estimating the company's future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF).

Simply Wall St -

Is It Too Late To Buy The Ramco Cements Limited (NSE:RAMCOCEM)?

This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price? … A question to answer is whether Ramco Cements's current trading price of ₹700.3 reflective of the actual value of the? … Let’s take a look at Ramco Cements’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Should You Be Tempted To Sell The Ramco Cements Limited (NSE:RAMCOCEM) Because Of Its PE Ratio?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to better understand how you can grow your money by investing in The Ramco Cements Limited (NSE:RAMCOCEM). … The Ramco Cements Limited (NSE:RAMCOCEM) is trading with a trailing P/E of 28.3x, which is higher than the industry average of 21.6x.

Simply Wall St -

Is The Ramco Cements Limited's (NSE:RAMCOCEM) Stock Available For A Good Price After Accounting For Growth?

Looking at The Ramco Cements Limited’s (NSE:RAMCOCEM) fundamentals some investors are wondering if its last closing price of ₹747.35 represents a good value for money for this high growth stock. … See our latest analysis for Ramco Cements? … Ramco Cements is poised for extremely high earnings growth in the near future

Simply Wall St -

RAMCOCEM Company Info

Description

The Ramco Cements Limited manufactures and sells cement and cementious materials in India. It offers Portland Pozzolana, OPC, sulphate resisting, sleeper grade, and rapid hardening Portland cement, as well as ready mix concrete and dry mortar products under the RAMCO brand. The company is also involved in the generation and sale of electricity from wind mills and thermal power plants. As of March 31, 2019, it operated a wind farm with an installed capacity of 125.95 MW comprising 108 wind electric generators. The Ramco Cements Limited also exports its products. The company was formerly known as Madras Cements Ltd. and changed its name to The Ramco Cements Limited in July 2013. The Ramco Cements Limited was incorporated in 1957 and is headquartered in Chennai, India.

Details
Name: The Ramco Cements Limited
RAMCOCEM
Exchange: NSEI
Founded: 1957
₹117,034,544,304
235,576,780
Website: http://www.ramcocements.in
Address: The Ramco Cements Limited
Auras Corporate Centre,
V Floor,
Chennai,
Tamil Nadu, 600004,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI RAMCOCEM Equity Shares National Stock Exchange of India IN INR 09. Apr 1997
BSE 500260 Equity Shares Mumbai Stock Exchange IN INR 09. Apr 1997
Number of employees
Current staff
Staff numbers
0
Ramco Cements employees.
Industry
Construction Materials
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/04 12:53
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/03
Last earnings filing: 2020/01/29
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.