cement

The Ramco Cements

RAMCOCEM · Nifty 50

893.85

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positioncement sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score80/100 (STRONG). 0 positive flags, 3 concerns.
Historical Context56 similar technical setups. Average outcome: -7.6% decline. 0% positive.

Fundamental

80/100

STRONG

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

The Ramco Cements scores 80/100 on fundamentals (strong). The Ramco Cements: BROAD EXPANSION regime.

Fundamental Score: 80/100 · STRONG · 2 signals detected

DuPont Analysis

ROE 8.0% broken into three drivers. Each shows how efficiently the company generates returns.

ROE8.0%=
7.1%Net Margin
×
0.6xTurnover
×
2.1xLeverage

ROE of 8.01% is modest margin-driven and stable. Net margin of 7.1% × asset turnover of 0.55x × leverage of 2.1x.

What This Means

Net margin of 7.1% means the company keeps ₹7.1 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 0.55x means the company efficiently uses its assets to generate revenue. Leverage of 2.1x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

55.3%

Operating

13.5%

Net

7.1%

declining

Gross margin 55.3% → operating margin 13.5% → net margin 7.1%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.

Financial Health

Earnings Quality

STRONG

Cash flow covers net income 2.5x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.

Debt Sustainability

ADEQUATE

Interest covered only 2.9x — stretched. Rising rates could pressure profitability. Debt/EBITDA at 2.0x is moderate.

Free Cash Flow

STRONG

FCF margin at 6.7% — moderate. Generating cash after investments.

Peer Comparison

The Ramco Cements is compared against 5 peers in the cement sector.

Key Watchpoints

🟢

Breaks above ₹939 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹849 (-5%)

Further downside risk

🟢

Cement sector entering leadership

Sector rotation signal

Detected Patterns

✅ Cash Flow Inflection: FCF turned positive after negative periods — major transition
✅ High Earnings Quality: Cash flow covers earnings 2.5x — strong cash conversion

Risk Flags

🔴 2 Critical⚠️ 1 Warning3 total flags
🔴Unusual items are 85% of net income
Earnings Quality

One-off items significantly inflating reported profit. Core earnings may be much lower.

🔴Cash covers only 4% of current liabilities
Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

⚠️Special charges present in income statement
Earnings Quality

Special charges of ₹553K Cr. May indicate restructuring, impairment, or one-time costs.

🔴 2 CRITICAL flags — significant concerns. Investigate before investing.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
Our margin analysis (declining) matches news reports of cost/margin pressure

50 articles scanned for fundamental themes

Facts

P/E Ratio
29.8UNAVAILABLE
P/B Ratio
2.6HIGH
Market Cap
₹2080790.6L CrHIGH
From 52W High
74% of high
Sector Peers
5
The Ramco Cements Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight