Mehabe score: 4 G Factor: 6 Piotski Score: 7 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 6 and Piotski score of 7.
Description
Ramco Industries is engaged in the business of manufacture of Fiber Cement (FC) sheets and Calcium Silicate Boards (CSBs).Site:RAMCOINDMain Symbol:RAMCOIND
Stock trades at 296.0, below its 50dma 299.14. However it is trading above its 200dma 269.41. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 299.14.
The 52 week high is at 366.65 and the 52week low is at 177.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.74 times its book value
– is expected to give good quarter
Weakness
– The company has delivered a poor sales growth of 6.94% over past five years.
– has a low return on equity of 6.53% for last 3 years.
Competition
– The industry trades at a mean P/E of 16.0x. BIGBLOC Const. trades at the industry’s max P/E of 21.72x. RAMCOIND trades at a P/E of 8.78x
– Industry’s mean G-Factor is 5.0 while the mean Piotski score is 8.0. RAMCOIND has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is 0.4%. The max 1- month return was given by BIGBLOC Const.: a return of 26.4 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 311.0 cr compared to Rs 261.0 cr for period ended Sep 2020, a rise of 19.2%
Operating Profits reported at Rs 56.0 cr for period ended Sep 2021 vis-vis 43.0 for period ended Sep 2020 .
Operating Margins expanded 153.1 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 16.56 compared to Rs 8.72 for previous quarter ended Jun 2021 and Rs 9.1 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1373.0 cr for period ended TTM vis-vis sales of Rs 1209.0 cr for the period ended Mar 2021, a healthy growth of 11.9%. The 3 year sales cagr stood at 9.8%.
Net Profit reported at Rs 357.0 cr for period ended TTM vis-vis sales of Rs 279.0 cr for the period ended Mar 2021, rising 21.8%.
Company recorded a healthy Net Profit CAGR of 27.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 190.0 cr for period ended Mar 2021 vis-vis Rs 36.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 8.0% compared to 7.0% over the last 3 Years. – The stock has given a return of 58% on a 1 Year basis vis-vis a return of 17% over the last 3 Years. – The compounded sales growth on a TTM bassis is 38% vis-vis a compounded sales growth of 9% over the last 3 Years. – The compounded profit growth on a TTM basis is 75% vis-vis a compounded profit growth of 18% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 2.99% vis-vis 2.84% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 39.28% vis-vis 39.36% for Jun 2021
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.74 times its book value
– is expected to give good quarter – The company has delivered a poor sales growth of 6.94% over past five years.
– has a low return on equity of 6.53% for last 3 years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains below its 50 DMA 299.14 and is trading at 296.0. Shows a near term lack of buying interest.
