Ramco Cements Intrinsic Value

RAMCOCEM • Construction
Current Stock Price
₹1082.50
Primary Intrinsic Value
₹324.75
Market Cap
₹2598 Cr
+100.0% Upside
Median Value
₹2165.00
Value Range
₹325 - ₹2706
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 ₹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
Method Types: Earnings Asset DCF Growth Dividend Conservative

Want to compare with current market value? Check RAMCOCEM share price latest .

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

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