Ramco Industries Limited
Ramco Industries Limited Fundamental Analysis
Ramco Industries Limited (RAMCOIND.NS) shows moderate financial fundamentals with a PE ratio of 8.18, profit margin of 14.98%, and ROE of 6.01%. The company generates $17.0B in annual revenue with strong year-over-year growth of 10.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze RAMCOIND.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakRAMCOIND.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRAMCOIND.NS trades at attractive valuation levels.
Growth Score
ExcellentRAMCOIND.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentRAMCOIND.NS maintains a strong and stable balance sheet.
Profitability Score
WeakRAMCOIND.NS struggles to sustain strong margins.
Key Financial Metrics
Is RAMCOIND.NS Expensive or Cheap?
P/E Ratio
RAMCOIND.NS trades at 8.18 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RAMCOIND.NS's PEG of 0.82 indicates potential undervaluation.
Price to Book
The market values Ramco Industries Limited at 0.48 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.81 times EBITDA. This is generally considered low.
How Well Does RAMCOIND.NS Make Money?
Net Profit Margin
For every $100 in sales, Ramco Industries Limited keeps $14.98 as profit after all expenses.
Operating Margin
Core operations generate 10.27 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.01 in profit for every $100 of shareholder equity.
ROA
Ramco Industries Limited generates $5.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ramco Industries Limited generates limited operating cash flow of $990.37M, signaling weaker underlying cash strength.
Free Cash Flow
Ramco Industries Limited produces free cash flow of $808.08M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $9.31 in free cash annually.
FCF Yield
RAMCOIND.NS converts 3.87% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.18
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.82
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How RAMCOIND.NS Stacks Against Its Sector Peers
| Metric | RAMCOIND.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.18 | 25.30 | Better (Cheaper) |
| ROE | 6.01% | 1305.00% | Weak |
| Net Margin | 14.98% | -43804.00% (disorted) | Strong |
| Debt/Equity | 0.04 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.62 | 10.42 | Strong Liquidity |
| ROA | 5.29% | -1543535.00% (disorted) | Weak |
RAMCOIND.NS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ramco Industries Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
63.55%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
2.96%
Industry Style: Cyclical, Value, Infrastructure
GrowingFCF CAGR
253.10%
Industry Style: Cyclical, Value, Infrastructure
High Growth