The Ramco Cements Ltd

Ramco Cements Ltd is engaged in manufacture of cement, Ready Mix Concrete (RMC) and Dry mortar products. It primarily caters to the domestic market of India.

Key Products

• manufacture of cement
• Ready Mix Concrete (RMC)
• Dry mortar products

Shareholding Pattern

-PUBLIC GROUP

-PROMOTER GROUP

Financial Summary

Synopsis of Financials

• Net debt as of December 31, 2023, is Rs. 4,993 Crores with a net debt to EBITDA ratio of 3.22 times
• Non-core assets may be monetized if necessary to manage net debt
• Cement demand affected by heavy rain in Tamil Nadu and Andhra Pradesh due to cyclone in December 2023
• Key highlights include a 10% improvement in cement sales, increase in premium products share to 27%, and a 25% growth in blended EBITDA per ton
• Prices have seen a decline of Rs. 5 to Rs. 10 per bag in different markets
• Market share has grown in all markets except West Bengal.

Final Outlook

The fundamentals of the stock doesn’t seem healthy, hinting at the possibility for the stock to decline further in the near future. Ramco Cements is trying to increase revenue by expansions and acquisitions of milestone reserves but by seeing the quarter 1 results ramco cements is declining as company’s ability to pay interest is deterioting and operating profit to interest ratio is at its lowest in last 5 quarters. Furthermore, the net sales have also decreased by 6.82% YOY and operating profit seen a decline in the last 5 quarters.

Analyzing the chart of this company also for 5 years this company is not giving a huge growth sometimes it grows by very huge percent but then the growth percent is constant with a lower scale . for eg-sales percent growth is 35.87% in 2023 from 13.47% in 2022 but again it got to 14.94% from 2024.

I Will Give SELL Recommendation For this stock.