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Ramco Industries

NSEI:RAMCOIND
Snowflake Description

Flawless balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RAMCOIND
NSEI
₹10B
Market Cap
  1. Home
  2. IN
  3. Materials
Company description

Ramco Industries Limited engages in the building product, textile, and power generation businesses in India. The last earnings update was 66 days ago. More info.


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  • Ramco Industries has significant price volatility in the past 3 months.
RAMCOIND Share Price and Events
7 Day Returns
-3.7%
NSEI:RAMCOIND
-3.9%
IN Basic Materials
-3.9%
IN Market
1 Year Returns
-44.2%
NSEI:RAMCOIND
-33.3%
IN Basic Materials
-32.2%
IN Market
RAMCOIND Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ramco Industries (RAMCOIND) -3.7% -29.4% -40.1% -44.2% -52.6% 57.2%
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
  • RAMCOIND underperformed the Basic Materials industry which returned -33.3% over the past year.
  • RAMCOIND underperformed the Market in India which returned -32.2% over the past year.
Price Volatility
RAMCOIND
Industry
5yr Volatility vs Market
Related Companies

RAMCOIND Value

 Is Ramco Industries 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 Industries 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 Industries.

NSEI:RAMCOIND Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 13.7%
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:RAMCOIND
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%) (13.14%))
0.921
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.92
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 6.48% + (0.921 * 7.85%)
13.71%

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

The calculations below outline how an intrinsic value for Ramco Industries 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:RAMCOIND DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 13.71%)
2020 363.13 Est @ 8.04% 319.34
2021 390.61 Est @ 7.57% 302.10
2022 418.90 Est @ 7.24% 284.91
2023 448.28 Est @ 7.01% 268.13
2024 479.01 Est @ 6.85% 251.96
2025 511.30 Est @ 6.74% 236.52
2026 545.37 Est @ 6.66% 221.86
2027 581.41 Est @ 6.61% 208.01
2028 619.60 Est @ 6.57% 194.94
2029 660.14 Est @ 6.54% 182.66
Present value of next 10 years cash flows ₹2,470.00
NSEI:RAMCOIND DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₹660.14 × (1 + 6.48%) ÷ (13.71% – 6.48%)
₹9,721.68
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹9,721.68 ÷ (1 + 13.71%)10
₹2,689.91
NSEI:RAMCOIND Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹2,470.00 + ₹2,689.91
₹5,159.91
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹5,159.91 / 86.66
₹59.54
NSEI:RAMCOIND Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹59.54
Current discount Discount to share price of ₹116.20
= -1 x (₹116.20 - ₹59.54) / ₹59.54
-95.2%

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

  • The current share price of Ramco Industries 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 Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ramco Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:RAMCOIND PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in INR ₹22.73
NSEI:RAMCOIND Share Price ** NSEI (2020-04-03) in INR ₹116.2
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 Industries.

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

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

= 116.2 ÷ 22.73

5.11x

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

  • Ramco Industries is good value based on earnings compared to the IN Basic Materials industry average.
  • Ramco Industries is good value based on earnings compared to the India market.
Price based on expected Growth
Does Ramco Industries's expected growth come at a high price?
Raw Data
NSEI:RAMCOIND PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
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 .

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

  • Unable to calculate PEG ratio for Ramco Industries, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Ramco Industries's assets?
Raw Data
NSEI:RAMCOIND PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in INR ₹378.26
NSEI:RAMCOIND Share Price * NSEI (2020-04-03) in INR ₹116.2
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:RAMCOIND PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 116.2 ÷ 378.26

0.31x

* Primary Listing of Ramco Industries.

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

  • Ramco Industries is good value based on assets compared to the IN Basic Materials industry average.
X
Value checks
We assess Ramco Industries'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 Industries has a total score of 3/6, 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.

RAMCOIND Future Performance

 How is Ramco Industries expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Ramco Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

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
17.6%
Expected Basic Materials industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ramco Industries expected to grow at an attractive rate?
  • Unable to compare Ramco Industries's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Ramco Industries's earnings growth to the India market average as no estimate data is available.
  • Unable to compare Ramco Industries's revenue growth to the India market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NSEI:RAMCOIND Future Growth Rates Data Sources
Data Point Source Value (per year)
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:RAMCOIND Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:RAMCOIND Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-12-31 10,069 1,899
2019-09-30 10,216 793 1,927
2019-06-30 10,277 1,783
2019-03-31 10,365 892 1,724
2018-03-31 9,321 1,258 1,760
2017-03-31 8,808 468 2,048

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Ramco Industries is high growth as no earnings estimate data is available.
  • Unable to determine if Ramco Industries is high growth as no revenue estimate data is available.
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:RAMCOIND 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 0 Analyst Estimates (S&P Global) See Below

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

NSEI:RAMCOIND Past Financials Data
Date (Data in INR Millions) EPS *
2019-12-31 22.73
2019-09-30 23.06
2019-06-30 21.35
2019-03-31 20.63
2018-03-31 21.07
2017-03-31 24.51

*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.
  • Unable to establish if Ramco Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether Ramco Industries is trading at Ramco Industries'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. Ramco Industries's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Materials companies here
  3. Ramco Industries's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Ramco Industries'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 Industries has a total score of 0/6, 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.

RAMCOIND Past Performance

  How has Ramco Industries 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 Industries'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 Industries's year on year earnings growth rate has been positive over the past 5 years.
  • Ramco Industries's 1-year earnings growth is less than its 5-year average (9.6% vs 13.7%)
  • Ramco Industries's earnings growth has not exceeded the IN Basic Materials industry average in the past year (9.6% vs 21.9%).
Earnings and Revenue History
Ramco Industries'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 Industries Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:RAMCOIND 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 10,068.56 1,898.91 1,160.72
2019-09-30 10,216.16 1,926.61 1,145.92
2019-06-30 10,277.36 1,782.91 1,123.92
2019-03-31 10,364.96 1,723.51 1,095.92
2018-03-31 9,320.50 1,760.23 890.68
2017-03-31 8,807.52 2,047.60 865.58
2016-03-31 8,667.37 1,924.37 747.57
2015-12-31 8,799.18 1,347.28 1,749.02
2015-09-30 8,811.58 1,060.58 1,736.32
2015-06-30 8,981.60 1,052.70 628.00
2015-03-31 8,945.48 900.58 667.35
2014-12-31 8,798.11 429.19 1,471.75
2014-09-30 8,602.11 280.19 1,458.45
2014-06-30 8,343.11 -85.81 1,432.65
2014-03-31 8,150.41 -30.81 1,411.59

*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 Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Ramco Industries used its assets less efficiently than the IN Basic Materials industry average last year based on Return on Assets.
  • Ramco Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Ramco Industries'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 Industries has a total score of 1/6, 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.

RAMCOIND Health

 How is Ramco Industries'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 Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ramco Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ramco Industries's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Ramco Industries'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 covered by short term assets, assets are 4.1x 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 Industries Company Filings, last reported 3 months ago.

NSEI:RAMCOIND Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 31,584.30 1,322.80 789.80
2019-09-30 31,584.30 1,322.80 789.80
2019-06-30 30,521.71 1,874.23 635.15
2019-03-31 30,521.71 1,874.23 635.15
2018-03-31 28,854.90 2,125.37 436.65
2017-03-31 27,160.10 3,361.33 551.67
2016-03-31 25,231.01 3,630.80 645.08
2015-12-31 6,825.20 3,351.60 546.50
2015-09-30 6,825.20 3,351.60 546.50
2015-06-30 5,572.70 3,201.10 367.40
2015-03-31 6,111.06 4,130.58 367.39
2014-12-31 5,461.00 3,592.60 273.30
2014-09-30 5,461.00 3,592.60 273.30
2014-06-30 5,217.69 4,083.88 397.60
2014-03-31 5,217.69 4,083.88 397.60
  • Ramco Industries's level of debt (4.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (65.8% vs 4.2% today).
  • Debt is well covered by operating cash flow (59.9%, greater than 20% of total debt).
  • Ramco Industries earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Ramco Industries'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 Industries has a total score of 6/6, 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.

RAMCOIND Dividends

 What is Ramco Industries'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
0.43%
Current annual income from Ramco Industries dividends.
If you bought ₹2,000 of Ramco Industries shares you are expected to receive ₹9 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 Industries's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.96%).
  • Ramco Industries'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:RAMCOIND 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 0 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:RAMCOIND Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2020-03-03 0.500 0.368
2019-07-11 0.500 0.274
2019-05-23 0.500 0.248
2018-07-09 0.500 0.237
2017-09-06 0.500 0.189
2017-07-13 0.500 0.207
2016-03-11 0.500 0.304
2015-08-05 0.300 0.271
2014-08-25 0.250 0.318
2013-05-30 1.100 2.649
2013-02-13 1.100 1.978
2012-08-13 1.100 1.766
2012-03-21 1.300 2.739
2011-08-23 0.900 2.148
2010-11-03 0.900 1.861
2010-05-24 0.850 1.248

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

  • Ramco Industries is not paying a notable dividend for India, therefore no need to check if the payments are stable.
  • Ramco Industries is not paying a notable dividend for India, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Ramco Industries's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Ramco Industries's dividends as it is not paying a notable one for India.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Ramco Industries'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 Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ramco Industries has a total score of 0/6, see the detailed checks below.


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

RAMCOIND Management

 What is the CEO of Ramco Industries'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
Prem Shanker
COMPENSATION ₹21,192,719
AGE 56
CEO Bio

Mr. Prem G. Shanker serves as Chief Executive Officer of Ramco Industries Limited.

CEO Compensation
  • Prem's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Prem's remuneration is higher than average for companies of similar size in India.
Management Team

Prem Shanker

TITLE
Chief Executive Officer
COMPENSATION
₹21M
AGE
56

Poosapadi Venketrama Raja Ramasubramaniam Raja

TITLE
MD & Whole Time Director
COMPENSATION
₹225K
AGE
25
TENURE
2.8 yrs

K. Sankaranarayanan

TITLE
Chief Financial Officer
COMPENSATION
₹6M
AGE
52

S. Balamurugasundaram

TITLE
Compliance Officer
COMPENSATION
₹3M
TENURE
7.3 yrs

T. Ravichandran

TITLE
Senior General Manager of Taxation & Accounts
AGE
48

G. Rangarajan

TITLE
Vice President of Technical
AGE
59

P. Narayanswamy

TITLE
Vice President of Marketing
AGE
50

Sambasivam Srinivas

TITLE
Vice President of Marketing & Sales
AGE
53
Board of Directors Tenure

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

8.5
Average Tenure
69.5
Average Age
  • The tenure for the Ramco Industries board of directors is about average.
Board of Directors

Poosapadi Ramasubrahmaneya Venketrama Raja

TITLE
Chairman of the Board
COMPENSATION
₹435K
AGE
60
TENURE
2.8 yrs

Poosapadi Venketrama Raja Ramasubramaniam Raja

TITLE
MD & Whole Time Director
COMPENSATION
₹225K
AGE
25
TENURE
2.8 yrs

Radhey Shyam Agarwal

TITLE
Non Executive & Independent Director
COMPENSATION
₹475K
AGE
77
TENURE
11.5 yrs

K. Ramachandran

TITLE
Non-Executive Independent Director
COMPENSATION
₹360K
AGE
81
TENURE
34.3 yrs

Sinthalapadi Srirenga Ramachandra Raja

TITLE
Non-Executive Director
COMPENSATION
₹200K
AGE
83
TENURE
28.3 yrs

N. K. Raja

TITLE
Non Executive & Non Independent Director
COMPENSATION
₹330K
AGE
70
TENURE
34.3 yrs

V. Santhanaraman

TITLE
Non-Executive & Independent Director
COMPENSATION
₹240K
AGE
69
TENURE
5.5 yrs

Chitra Venkataraman

TITLE
Non-Executive & Independent Director
COMPENSATION
₹425K
AGE
67
TENURE
5.1 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 (₹)
18. Jun 19 Sell N. Githalakshmi Individual 17. Jun 19 17. Jun 19 -10,000 ₹204.20 ₹-2,042,000
18. Jun 19 Sell N. Raja Individual 17. Jun 19 17. Jun 19 -15,000 ₹204.30 ₹-3,064,483
18. Jun 19 Buy P. Nirmala Individual 17. Jun 19 17. Jun 19 90,000 ₹204.69 ₹18,421,999
18. Jun 19 Sell N. K. Raja Individual 17. Jun 19 17. Jun 19 -65,000 ₹204.30 ₹-13,279,499
X
Management checks
We assess Ramco Industries'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 Industries 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.

RAMCOIND News

Simply Wall St News

Have Insiders Been Selling Ramco Industries Limited (NSE:RAMCOIND) Shares?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for Ramco Industries The Last 12 Months Of Insider Transactions At Ramco Industries In the last twelve months, the biggest single purchase by an insider was when insider P. … All up, insiders sold more shares in Ramco Industries than they bought, over the last year. … It's great to see high levels of insider ownership, but looking back at the last year, we'd need to see more buying to gain confidence from the Ramco Industries insider transactions?

Simply Wall St -

Does Ramco Industries Limited (NSE:RAMCOIND) Have A Good P/E Ratio?

View our latest analysis for Ramco Industries How Do I Calculate Ramco Industries's Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Ramco Industries: P/E of 8.39 = ₹179.15 ÷ ₹21.35 (Based on the year to June 2019.) Is A High Price-to-Earnings Ratio Good? … The Verdict On Ramco Industries's P/E Ratio Ramco Industries trades on a P/E ratio of 8.4, which is below the IN market average of 13.6.

Simply Wall St -

Ramco Industries (NSE:RAMCOIND) Has A Pretty Healthy Balance Sheet

Check out our latest analysis for Ramco Industries What Is Ramco Industries's Debt? … NSEI:RAMCOIND Historical Debt, July 30th 2019 How Strong Is Ramco Industries's Balance Sheet? … But ultimately the future profitability of the business will decide if Ramco Industries can strengthen its balance sheet over time.

Simply Wall St -

What Percentage Of Ramco Industries Limited (NSE:RAMCOIND) Shares Do Insiders Own?

A look at the shareholders of Ramco Industries Limited (NSE:RAMCOIND) can tell us which group is most powerful. … View our latest analysis for Ramco Industries NSEI:RAMCOIND Ownership Summary, July 2nd 2019 What Does The Institutional Ownership Tell Us About Ramco Industries? … Insider Ownership Of Ramco Industries While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

Ramco Industries Limited (NSE:RAMCOIND): Does The -2.1% Earnings Drop Reflect A Longer Term Trend?

Understanding Ramco Industries Limited's (NSE:RAMCOIND) performance as a company requires examining more than earnings from one point in time. … Check out our latest analysis for Ramco Industries How Did RAMCOIND's Recent Performance Stack Up Against Its Past? … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 38%, indicating the rate at which RAMCOIND is growing has slowed down.

Simply Wall St -

What Did Ramco Industries Limited's (NSE:RAMCOIND) CEO Take Home Last Year?

View our latest analysis for Ramco Industries How Does Prem Shanker's Compensation Compare With Similar Sized Companies? … Ramco Industries Limited has reduced its earnings per share by an average of 12% a year, over the last three years (measured with a line of best fit). … CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Ramco Industries (free visualization of insider trades).

Simply Wall St -

Calculating The Fair Value Of Ramco Industries Limited (NSE:RAMCOIND)

In this article we are going to estimate the intrinsic value of Ramco Industries Limited (NSE:RAMCOIND) by taking the expected future cash flows and discounting them to today's value. … We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (₹, Millions) ₹977.71 ₹1.22k ₹1.45k ₹1.68k ₹1.90k ₹2.12k ₹2.34k ₹2.56k ₹2.79k ₹3.03k Growth Rate Estimate Source Est @ 31.49% Est @ 24.31% Est @ 19.28% Est @ 15.76% Est @ 13.3% Est @ 11.57% Est @ 10.37% Est @ 9.52% Est @ 8.93% Est @ 8.52% Present Value (₹, Millions) Discounted @ 16.02% ₹842.74 ₹902.98 ₹928.40 ₹926.37 ₹904.68 ₹870.04 ₹827.68 ₹781.35 ₹733.64 ₹686.22 Present Value of 10-year Cash Flow (PVCF)= ₹8.40b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period.

Simply Wall St -

The Ramco Industries (NSE:RAMCOIND) Share Price Has Soared 453%, Delighting Many Shareholders

Then look at the Ramco Industries Limited (NSE:RAMCOIND) share price. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During five years of share price growth, Ramco Industries achieved compound earnings per share (EPS) growth of 22% per year.

Simply Wall St -

Need To Know: Ramco Industries Limited (NSE:RAMCOIND) Insiders Have Been Selling Shares

So shareholders might well want to know whether insiders have been buying or selling shares in Ramco Industries Limited (NSE:RAMCOIND). … Ramco Industries Insider Transactions Over The Last Year. … That means that an insider was selling shares at around the current price of ₹211.

Simply Wall St -

Ramco Industries Limited's (NSE:RAMCOIND) Earnings Dropped -14%, Did Its Industry Show Weakness Too?

After looking at Ramco Industries Limited's (NSE:RAMCOIND) latest earnings announcement (31 March 2018), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … RAMCOIND's trailing twelve-month earnings (from 31 March 2018) of ₹1.8b has. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 45%, indicating the rate at which RAMCOIND is growing has slowed down

Simply Wall St -

RAMCOIND Company Info

Description

Ramco Industries Limited engages in the building product, textile, and power generation businesses in India. It offers fiber cement roofing sheets and calcium silicate boards; and various accessories and metal framing products. The company also provides design and material consultancy, project execution, site quality assurance, and dry construction methods training services; and invests in securities. In addition, it operates 15 wind mills with an installed capacity of 16.73 MW in Tirunelveli and Coimbatore Districts of Tamil Nadu; Chitradurga and Hassan Districts in Karnataka; and Kutch District in Gujarat. Ramco Industries Limited was incorporated in 1965 and is headquartered in Chennai, India.

Details
Name: Ramco Industries Limited
RAMCOIND
Exchange: NSEI
Founded: 1965
₹10,070,247,572
86,663,060
Website: http://www.ramcoindltd.com
Address: Ramco Industries Limited
Auras Corporate Centre,
6th Floor,
Chennai,
Tamil Nadu, 600004,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI RAMCOIND Equity Shares National Stock Exchange of India IN INR 06. Nov 1996
BSE 532369 Equity Shares Mumbai Stock Exchange IN INR 06. Nov 1996
Number of employees
Current staff
Staff numbers
0
Ramco Industries employees.
Industry
Construction Materials
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/04 18:12
End of day share price update: 2020/04/03 00:00
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.