Latest news with #RamcoCements
Business Upturn
4 days ago
- Business
- Business Upturn
Ramco Cements commissions railway siding and new construction chemical plant
By Aman Shukla Published on July 16, 2025, 16:45 IST Ramco Cements has successfully commissioned two major infrastructure projects, strengthening its logistics and manufacturing capabilities. These strategic developments aim to enhance operational efficiency and expand the company's footprint in key markets across India. 1. Private Railway Siding at Kalavatala, Andhra Pradesh The company has completed the construction of a private railway siding at its integrated cement plant in Kalavatala Village, Kolimigundla Mandal, Nandyal District, Andhra Pradesh. This state-of-the-art railway siding spans approximately 23 kilometers and includes wagon tippler equipment for efficient cargo handling. After securing the Track Fit Certificate and FOIS clearance from Indian Railways, the company received full operational approval. Ramco Cements officially commenced cargo movement through the siding on the same day of the announcement, significantly boosting its logistics and transportation efficiency. 2. Fifth Construction Chemical Plant Commissioned in Odisha Ramco Cements has also commissioned its fifth construction chemical plant at its existing cement grinding unit premises in Haridaspur Village, Jajpur District, Odisha. This new facility is designed to cater to the growing demand in Eastern India and is expected to enhance the company's product offerings in the construction chemical segment. With the addition of this unit, Ramco's total installed capacity for construction chemicals has now reached 5 lakh tonnes per annum. These developments mark a significant milestone in Ramco Cements' growth strategy, focusing on sustainable logistics and product diversification to meet regional demands. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Time of India
07-07-2025
- Business
- Time of India
Analysts see 15–25% upside in cement stocks despite valuation caution
Cement stocks are attracting buyers again. Prices have increased, and first quarter results are expected to be strong. UltraTech Cement and Ramco Cements show promising uptrends. Experts predict growth in the cement sector, driven by rising demand and cost efficiency. While near-term valuations may be full, cement remains a good long-term investment. Analysts recommend UltraTech and JK Cement. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Shares of cement companies have seen renewed buying interest in the past few weeks following a rise in prices, expectations of strong first quarter results despite the onset of monsoons, and an expected FY26 rebound from circumspect sales last said that even on the technical charts, some stocks indicate a such as UltraTech Cement JK Cement and Shree Cement have advanced 5-11% in the past one month, recouping some of the losses made in the previous year. The benchmarks Nifty 50 and Nifty 500 have gained 1.8% and 1.7% in this period, respectively. Cement price hikes taken in June have sustained for the first time in a while, and coupled with reduced cash discounts, have kept net realisations for the companies stable through the first quarter," said Manish Valecha, research analyst at Anand Rathi Institutional Equities. "A low-base effect from last year, when growth slowed to 3-4% due to elections, is also expected to boost this year's growth to 7-8%, starting from Q1."Valecha also said that pet coke prices have remained stable, helping keep input costs in check. Petroleum coke, or pet coke is used as a fuel in the production Chandak, head of institutional equities at Elios Financial Services, said current Indian demand for cement is 440 million tonnes per annum (mtpa), which is likely to grow to 620 mtpa by 2030."After a benign couple of quarters, average cement prices rose by 8% year-on-year in Q1FY26, reaching ₹360 per bag. Declining input costs (especially coal and diesel) have led to margin improvements, and a sharp decline in interest rates further improves margins," he increase in demand, coupled with pricing power and cost efficiency is likely to keep buyers interested in cement stocks "Cement stocks have seen a renewed buying interest in the last couple of weeks with stocks within the sector witnessing price up moves supported by rising volumes," said Ruchit Jain, vice president at Motilal Oswal Financial Services Jain said that stocks like Ultratech Cement have given a breakout from 12-months consolidation phase indicating the start of a fresh uptrend. "We expect the stock to rally towards ₹13,200 in the short term while the ₹12,300-12,200 range is expected to act as a support," he said. This indicates 5.5% upside from Friday's also said that Ramco Cements too has been showing signs of outperformance within the sector and has a bullish set-up, it may move towards ₹1,200 in the short term. That would imply gains of almost 10% from its current said he expects strong first-quarter results in the sector, particularly from South-based companies."Valuations remain attractive, with large-caps offering 15-20% upside and midcaps likely to deliver 20-25% returns over the next year. We prefer UltraTech among large-caps and JK Cement in midcaps," he said that current valuations have priced in the near term positives, leaving little value on the table, but cement remains a good play over the 3-5 years period.
Time of India
17-06-2025
- Business
- Time of India
JM Financial maintains Hold on The Ramco Cements, revises target price to Rs 1,000
JM Financial maintains Hold call on The Ramco Cements with a revised target price of Rs 1,000 (earlier Rs 960). The current market price of The Ramco Cements is Rs 1075.9. The time period given by the analyst is a year when The Ramco Cements price can reach the defined target. Ramco Cements, incorporated in 1957, is a Large Cap company with a market cap of Rs 25115.52 crore, operating in the Cement sector. The Ramco Cements' key products/revenue segments include Cement, Dry Mortar Mix, Scrap, Ready Mix Concrete, Power and Other Operating Revenue for the year ending 31-Mar-2024. Financials For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 2409.72 crore, up 20.83% from last quarter Total Income of Rs 1994.26 crore and down -10.48 % from last year same quarter Total Income of Rs 2691.84 crore. The company has reported net profit after tax of Rs 24.82 crore the in latest quarter. The company's top management includes Mr.M F Farooqui, Mr.P R Venketrama Raja, Justice(Retd)Chitra Venkataraman, Mr.M S Krishnan, Mr.C K Ranganathan, Bhaskar Baliga, Mr.R Dinesh. Company has Ramakrishna Raja & Co. as its auditors. As on 31-03-2025, the company has a total of 24 crore shares outstanding. Live Events Investment Rationale Average cement prices have risen by Rs 30-35/bag in trade and Rs 60-70/bag in non-trade in the South from exit of Mar?25. The sustenance of prices should augur well for profitability in the coming quarter (>Rs 300/tn sequentially). According to JM Financial, the management expects overall cost increase of ~INR 100/tn from FY26 owing to implementation of Tamil Nadu Mineral Bearing Land Tax Act, 2024. It aims to increase current clinker capacity from 16mt to 19mt and cement capacity from 24mt to 30mt by FY26E; a majority of the addition is likely through de-bottlenecking at various locations at a minimal capex of USD 10-15/tn; It remains committed to the sale of INR 10bn of noncore assets (has realised Rs 4.6 billion so far) by Jul?25 as committed earlier to meet capex/ keep leverage in check; Targeting 2x-3x revenue growth (additional revenue stream) in the construction chemicals business (revenue of ~Rs 2.2billion in FY25) over the next couple years. Recent price hikes and ongoing deleveraging are near-term catalysts for stock performance. But a durable re-rating hinges on sustained profitability along with market share gains and controlled leverage. The brokerage maintains HOLD with Jun?26 target price of Rs 1,000 (post quarterly-rollover) based on 13x Jun?27 EV/EBITDA. Promoter/FII Holdings Promoters held 42.56 per cent stake in the company as of 31-Mar-2025, while FIIs owned 7.29 per cent, DIIs 30.14 per cent.
The Hindu
05-06-2025
- General
- The Hindu
Over 1 lakh saplings planted across Virudhunagar
Massive sapling planting events were taken up across Virudhunagar district on Thursday on the occasion of World Environment Day. Virudhunagar Collector V. P. Jeyaseelan inaugurated sapling planting drive at the Eco-Park set up by Ramco Cements at Pandalgudi. Speaking on the occasion, the Collector said that a total of 1,12,350 saplings were planted in 360 places in the 11 blcoks in the district. The theme of the World Enviroment day this year was on ending plastic pollution. 'The present developmental activities were posing a major challenge to biodiversity. Climate change, health issues, food and water security and sustainable resources could be retrieved only based on nature-based solutions,' he added. Virudhunagar district had only 16.8% of green coverage and efforts are being taken to increase it to 33% by planting 1 crore saplings under Green Tamil Nadu Mission. A consultation on the need to preserve biodiversity at all levels was held on the occasion. District Revenue Officer R. Rajendran, Special DRO (Land Acquisition for SIPCOT), Sengottaiyan, Project Director (District Rural Development Agency), Dhandapani, Sub-Collector, Sivakasi, N. Priya Ravichandran, governing council member of Tamil Nadu Climate Change Mission, Nirmala Raja, were among those who were present.
Indian Express
05-06-2025
- Business
- Indian Express
Ramco Cements: A cyclical turnaround in the making?
Cement prices have remained flat for a decade, with South India bearing the brunt. However, with consolidation among major players and early signs of price recovery, Ramco Cements, which is trading near its 2017 peaks, could be poised for a turnaround. Owing to excess capacity, per bag prices of cement have increased by only 1.7% CAGR over the last 10 years, well below the average inflation rate over the period. Nowhere has this impact been felt more than in South India, where excess capacity has been the highest among regions. But the silver lining is that prices are expected to inch up owing to the consolidation drive by Ultratech Cement and Ambuja Cement. If there is recovery in pricing, one major player in the southern region – The Ramco Cements – could be a major beneficiary. While the stock is barely above the peak price it hit in 2017 of Rs 866 per share, there are enough reasons to dig deeper into the company. A climb and then a dip in sales and volumes From FY21 to FY24, Ramco Cements more than doubled cement volumes — from 8.3 million metric tonnes (MMT) to 18.0 MMT — driving revenue from Rs 5,303 crore to Rs 9,483 crore. However, despite surging volumes, EBITDA margins slid from ~29.8 percent in FY21 to ~15 percent in FY22 as global coal, petcoke, and diesel prices rose faster than selling prices in South India. By FY23, improving energy costs helped margins recover to around ~15 percent, and revenue climbed to Rs 8,172 crore. In FY24, volumes hit 18 MMT and revenue reached Rs 9,483 crore, with EBITDA margins at ~16 percent. Yet, in FY25, volumes plateaued near 18.2 MMT and revenue dipped 9 percent to Rs 8,554 crore, as renewed input inflation outpaced modest price hikes. Ramco's aggressive capacity additions fuelled top-line growth, but fluctuating energy costs and competitive pricing kept margins under pressure throughout FY21-25. At 14%, Ramco Cements' EBITDA margins are where they were nearly 10 years ago in 2014. With expected improvement in pricing discipline, margins should inch up from here. Profits and cash flow: Volatile but resilient While sales has been in an uptrend, owing to declining EBITDA margins (29-14%) and surging interest payments (Rs 88 crore-459 crore), profit after tax (PAT) has shrunk significantly from Rs 784 crore to Rs 270 crore (after exceptional items – other income of Rs 199 crore). But cash flows tell a different story. Cash flow from operations (CFO) remains strong. Though much of the CFO is used for debt servicing and capex, it reflects operational health. Hence, EV/EBITDA, not P/E, is a more appropriate valuation metric. Debt and interest coverage: A tight corner In a bid to maintain market share, Ramco has grown capacities aggressively, which it funded through debt. When margins were healthy, interest was a small blip (FY21, FY22). But as profitability dropped, interest coverage (EBITDA ÷ interest expense) tumbled from 14x in FY2021-22 to 3x in FY2024-25. Put simply, that means Ramco now has to spend a much larger share of its profit on interest. Management has sold non-core land assets (about Rs 455 crore realised so far, with another Rs 545 crore expected soon) to reduce debt and ease pressure. But until EBITDA climbs back up, investors must be watchful of the coverage ratio. Ramco financed its expansion with debt. As margins shrank, interest coverage dropped from 14x in FY22 to 3x in FY25 — a clear sign of stress. Understanding Ramco's business and the cement cycle How Ramco makes money: The basics Ramco sells bagged cement (OPC, blended cements) to builders, contractors, and cement distributors. It also sells ready-mix concrete and dry mortar (a small part of revenue). Its core markets are Tamil Nadu, Kerala, Andhra Pradesh, Karnataka, Odisha, and West Bengal. Ramco's advantage historically comes from: Scale & Integration: 11 plants, 22 MTPA capacity, captive limestone mines — this helps control costs. Green Power: Over 200 MW of wind farms + 43 MW waste-heat recovery — lower electricity costs. Distribution Network: 9,400+ dealers, 23,500+ sub-dealers — gets cement to tens of thousands of customers in villages, towns, and cities. Industry consolidation and competition After a slowdown in 2018-19, the Indian cement industry has seen consolidation. Giants like UltraTech and Ambuja have snapped up smaller players, especially in South India. In FY24 and FY25, Ramco had to keep plants running at high capacity to spread fixed costs, even when demand was weak. Meanwhile, pricing was lacklustre, i.e., supply outpaced demand. From FY21 through early FY2024, South Indian cement prices languished near multi-year lows. Ramco's response has been to expand in other regions, cut costs, and bank on its brand. They boosted green power use from 22% of total energy in FY22-23 to a planned 34% in FY2023-24. They built rail sidings to ditch diesel trucks. They also sold off non-core real estate to pay down debt. Demand outlook: Signs of a turnaround After years of weak pricing, South Indian cement prices finally began to stabilise in early FY25-26. Drivers included a combination of modest demand recovery (government infrastructure projects, rural housing) and relatively slower capacity additions in that region. South India cement prices had seen an uptick in April 2024, compared to April 2023, however, the price hikes did not sustain through the rest of the year. According to Nuvama Research, 'In May 2025, cement prices saw an increase across all regions, with the southern region leading the trend, followed by the eastern, central, and western markets. This price hike was mainly driven by an improvement in demand.' Given that the South Indian cement market is significantly consolidated compared to a year ago, the expectation is that these hikes will sustain themselves. And because South accounts for ~75% of Ramco's volumes, that would directly lift revenue and profitability. That's why, despite a grim FY25, FY26 could be much better. With most expansion behind them (no massive capex outlays planned beyond maintenance), Ramco can use existing capacity to serve recovering demand, so each incremental tonne sold adds right to the bottom line. A significant cost pressure has emerged with the introduction of a new Mineral Bearing Land Tax of Rs 160 per tonne of limestone in Tamil Nadu, effective from April 4, 2025. This rate is reported as the highest in India (e.g., Jharkhand levies Rs 40 per tonne). This tax is expected to increase the cost of cement production in the state by approximately Rs 200 per tonne. Given Ramco Cements' strong footprint in South India, this tax poses a direct and substantial threat to production costs and profitability. The cement industry has appealed to the Tamil Nadu government for relief. The outcome of this request will be critical — an unfavorable decision could result in a structural cost hike for Ramco. Valuation: Is Ramco a good buy now? At Rs 988 per share, Ramco's trailing P/E is roughly 85x earnings. That may sound high, but cement stocks often trade at high P/Es because profits are low. For comparison: UltraTech Cement: 54 P/E Ambuja Cements: 33 P/E Shree Cement: 94X P/E Ramco: 85X P/E Ramco's P/E at 85X reflects a cyclical trough in earnings (not a premium growth multiple). Thus P/E is usually not a great valuation metric for 'cyclical stocks'. P/B comparison: Cheaper on book value P/B is a better metric for comparing valuations for cement companies. Let's take a look : UltraTech and Shree trade at 4.5x and above Ambuja Cement trades at 2.5x book value Ramco trades at ~3.1× book value That tells us that Ramco's assets (plants, land, mines) are valued more cheaply relative to some of the larger peers. Based on its 10-year historical media value of 3.5x, Ramco trades at a reasonable discount. The bottom line: Betting on a cycle turn Ramco is a cyclical bet. You're wagering that the Indian cement cycle is on the upswing—volumes rising, prices firming, costs stabilizing. If that plays out, the stock today is a 'value' (relative to peers) at mid-teens EV/EBITDA and 2.7x P/B. But if your horizon is a few quarters, wait for clearer signals of demand and pricing. If you can hold for more than 12-18 months, Ramco's cyclical upswing could lead to far better performance by the company. Note: We have relied on data from and throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information. Rahul Rao has helped conduct financial literacy programmes for over 1,50,000 investors. He has also worked at an AIF, focusing on small and mid-cap opportunities. Disclosure: The writer or his dependents do not hold shares in the securities/stocks/bonds discussed in the article. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.
