Mehabe score: 6 G Factor: 4 Piotski Score: 6 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 4 and Piotski score of 6.
Description
The Ramco Cements is engaged in manufacture of Cement, Ready Mix Concrete and Dry Mortar products. The Company caters mainly to the domestic markets.The Company is also engaged in sale of surplus electricity generated from its windmills after meeting its captive requirements.(Source : 202003 Annual Report Page No:131)Site:RAMCOCEMMain Symbol:RAMCOCEM
Stock trades at 1107.0, above its 50dma 1034.59. It also trades above its 200dma 927.99. The stock remains bullish on techicals
The 52 week high is at 1132.00 and the 52week low is at 664.05
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 4.56 times its book value
-The company has delivered a poor sales growth of 8.12% over past five years.
– has a low return on equity of 13.12% for last 3 years.
– might be capitalizing the interest cost
-Dividend payout has been low at 10.87% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 17.6x. Dalmia BharatLtd trades at the industry’s max P/E of 33.78x. RAMCOCEM trades at a P/E of 33.3x
– Industry’s mean G-Factor is 5.6 while the mean Piotski score is 8.0. RAMCOCEM has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 16.7%. The max 1- month return was given by K C P: a return of 34.65 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 1634.0 cr compared to Rs 1394.0 cr for period ended Mar 2020, a rise of 17.2%
Operating Profits reported at Rs 449.0 cr for period ended Mar 2021 vis-vis 280.0 for period ended Mar 2020 .
Operating Margins expanded 739.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 9.16 compared to Rs 8.76 for previous quarter ended Dec 2020 and Rs 6.07 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 5291.0 cr for period ended Mar 2021 vis-vis sales of Rs 5389.0 cr for the period ended Mar 2020, a fall of 1.9%. The 3 year sales cagr stood at 6.1%.
Operating margins expanded to 29.0% for period ended Mar 2021 vis-vis 21.0% for period ended Mar 2020, expansion of 800.0 bps.
Net Profit reported at Rs 784.0 cr for period ended Mar 2021 vis-vis sales of Rs 604.0 cr for the period ended Mar 2020, rising 23.0%.
Company recorded a healthy Net Profit CAGR of 11.6% 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 1892.0 cr for period ended Mar 2021 vis-vis Rs 748.0 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 15.0% compared to 13.0% over the last 3 Years. – The stock has given a return of 60% 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 -2% vis-vis a compounded sales growth of 6% over the last 3 Years. – The compounded profit growth on a TTM basis is 30% vis-vis a compounded profit growth of 12% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 8.64% vis-vis 8.26% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 23.13% vis-vis 22.57% for Mar 2021
Conclusion
– – Stock is trading at 4.56 times its book value
-The company has delivered a poor sales growth of 8.12% over past five years.
– has a low return on equity of 13.12% for last 3 years.
– might be capitalizing the interest cost
-Dividend payout has been low at 10.87% of profits over 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 above its 50 DMA 1034.59 and is trading at 1107.0, thus bullish price action wise.
