Ramco Cements Intrinsic Value
RAMCOCEM • Construction
Current Stock Price
₹944.60
Primary Intrinsic Value
₹283.38
Market Cap
₹2267 Cr
+100.0%
Upside
Median Value
₹1889.20
Value Range
₹283 - ₹2362
Assessment
Trading Below Calculated Value
Safety Margin
50.0%
RAMCOCEM Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹283.38 | ₹226.70 - ₹340.06 | -70.0% | EPS: ₹13.08, Sector P/E: 12x |
| Book Value Method | asset | ₹2361.50 | ₹2125.35 - ₹2597.65 | +150.0% | Book Value/Share: ₹3100.83, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹1889.20 | ₹1700.28 - ₹2078.12 | +100.0% | Revenue/Share: ₹3741.67, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹1889.20 | ₹1700.28 - ₹2078.12 | +100.0% | EBITDA: ₹1580.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹2361.50 | ₹1889.20 - ₹2833.80 | +150.0% | CF Growth: 5.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹283.38 | ₹255.04 - ₹311.72 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹283.38 | ₹255.04 - ₹311.72 | -70.0% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| Graham Defensive Method | conservative | ₹955.29 | ₹859.76 - ₹1050.82 | +1.1% | EPS: ₹13.08, BVPS: ₹3100.83 |
Method Types:
Earnings
Asset
DCF
Growth
Dividend
Conservative
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 ₹1889.20 (median value). With the current market price of ₹944.60, this represents a +100.0% variance from our estimated fair value.
The valuation range spans from ₹283.38 to ₹2361.50, indicating ₹283.38 - ₹2361.50.
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 |
| 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 |