Ramco Cements Intrinsic Value
RAMCOCEM Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹324.75 | ₹259.80 - ₹389.70 | -70.0% | EPS: ₹13.08, Sector P/E: 12x |
| Book Value Method | asset | ₹2706.25 | ₹2435.62 - ₹2976.88 | +150.0% | Book Value/Share: ₹3100.83, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹2165.00 | ₹1948.50 - ₹2381.50 | +100.0% | Revenue/Share: ₹3741.67, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹2165.00 | ₹1948.50 - ₹2381.50 | +100.0% | EBITDA: ₹1580.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹2706.25 | ₹2165.00 - ₹3247.50 | +150.0% | CF Growth: 5.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹324.75 | ₹292.28 - ₹357.23 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹324.75 | ₹292.28 - ₹357.23 | -70.0% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| Graham Defensive Method | conservative | ₹955.29 | ₹859.76 - ₹1050.82 | -11.8% | EPS: ₹13.08, BVPS: ₹3100.83 |
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Valuation Comparison Chart
RAMCOCEM Intrinsic Value Analysis
What is the intrinsic value of RAMCOCEM?
Based on our comprehensive analysis using 8 different valuation methods, the estimated intrinsic value of Ramco Cements (RAMCOCEM) is ₹2165.00 (median value). With the current market price of ₹1082.50, this represents a +100.0% variance from our estimated fair value.
The valuation range spans from ₹324.75 to ₹2706.25, indicating ₹324.75 - ₹2706.25.
Is RAMCOCEM undervalued or overvalued?
Based on our multi-method analysis, Ramco Cements (RAMCOCEM) appears to be trading below calculated value by approximately 100.0%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 0.49 | Industry Standard: 2.0+ | Below 1.5 | Measures short-term liquidity capacity |
| Debt to Equity Ratio | 2.19 | Industry Standard: <0.5 | Above 1.0 | Indicates financial leverage level |
| Return on Equity | 4.2% | Industry Standard: 15%+ | Below 10% | Measures shareholder return efficiency |
| Operating Margin | 17.0% | Industry Standard: 20%+ | Above 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.55x | Industry Standard: 1.0x+ | Above 0.5x | Measures asset utilization efficiency |
Related Pages for Ramco Cements
Additional stock information and data for RAMCOCEM
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹1,399 Cr | ₹1,128 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹1,898 Cr | ₹943 Cr | Positive Free Cash Flow | 7/10 |
| March 2023 | ₹1,412 Cr | ₹565 Cr | Positive Free Cash Flow | 7/10 |
| March 2022 | ₹1,135 Cr | ₹227 Cr | Positive Free Cash Flow | 7/10 |
| March 2021 | ₹1,892 Cr | ₹1,003 Cr | Positive Free Cash Flow | 8/10 |