The Ramco Cement (RAMCOCEM)

FairStock Score: 48/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear two hats: Buffett's business quality and Graham's margin of safety. Ramco Cement is a cement business, so I start with the cycle. The top line has grown steadily: sales growth 9.61%, five-year revenue CAGR 9.59%, and the latest quarter shows ₹2,106 Cr sales and ₹386 Cr net profit. Free cash flow of ₹857 Cr is a real positive, and promoter holding of 42.55% means owners have skin in the game. Debt/equity at 0.48 is not alarming. Piotroski F-Score 7/9 suggests some financial strength. But the economics are not compelling: ROE 7.73% and ROCE 4.77% are modest, and profit growth of -62.96% shows how cyclical and fragile earnings can be. On valuation, Graham would shudder. The Graham Number is ₹415.38 while the stock trades at ₹907.20, a margin of safety of -171.99%. DCF intrinsic value is only ₹56.73. P/E 33.22 and P/B 2.65 are not cheap for a business earning sub-8% ROE. EV/EBITDA 223.26 looks extreme, and PEG 1.68 offers no obvious bargain. Altman Z-Score 2.25 puts it in grey territory, while dividend yield is just 0.28%—not enough to pay me to wait. FairStock Score 48/100 confirms a mixed picture. I prefer wonderful businesses at fair prices, or fair businesses at wonderful prices. Here, a cyclical cement company with weak profitability and stretched valuation looks like neither. I would monitor profit recovery, ROE/ROCE, cash flow, and any price correction before considering a Graham-style purchase.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer