Ramco Cements Limited
NSE:RAMCOCEM
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EV/OCF
Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.
Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.
Valuation Scenarios
If EV/OCF returns to its 3-Year Average (17.1), the stock would be worth ₹1 009.47 (5% upside from current price).
| Scenario | EV/OCF Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 16.2 | ₹958.5 |
0%
|
| 3-Year Average | 17.1 | ₹1 009.47 |
+5%
|
| 5-Year Average | 16.7 | ₹988.37 |
+3%
|
| Industry Average | 15.8 | ₹934.32 |
-3%
|
| Country Average | 23.4 | ₹1 386.22 |
+45%
|
Forward EV/OCF
Today’s price vs future operating cash flow
Peer Comparison
| Market Cap | EV/OCF | P/E | ||||
|---|---|---|---|---|---|---|
| IN |
|
Ramco Cements Limited
NSE:RAMCOCEM
|
226.5B INR | 16.2 | 39.4 | |
| IE |
C
|
CRH PLC
NYSE:CRH
|
78.9B USD | 16.3 | 21 | |
| CH |
|
Holcim AG
SIX:HOLN
|
39.8B CHF | 15.3 | 3.1 | |
| DE |
|
HeidelbergCement AG
XETRA:HEI
|
32.8B EUR | 11.4 | 16.9 | |
| US |
|
Vulcan Materials Co
NYSE:VMC
|
38.1B USD | 23.1 | 35.4 | |
| IN |
|
UltraTech Cement Ltd
NSE:ULTRACEMCO
|
3.6T INR | 25.8 | 48.6 | |
| US |
|
Martin Marietta Materials Inc
NYSE:MLM
|
37.1B USD | 23.7 | 32.6 | |
| US |
A
|
Amrize AG
SIX:AMRZ
|
24.4B CHF | 15.4 | 25.9 | |
| DE |
H
|
Heidelberg Materials AG
XMUN:HEI
|
21.7B EUR | 7.9 | 11.2 | |
| IN |
|
Grasim Industries Ltd
NSE:GRASIM
|
1.9T INR | -20.7 | 44.3 | |
| CN |
|
China Jushi Co Ltd
SSE:600176
|
133B CNY | 34.2 | 40.5 |
Market Distribution
| Min | 0.1 |
| 30th Percentile | 14.7 |
| Median | 23.4 |
| 70th Percentile | 39.6 |
| Max | 28 676 |
Other Multiples
Ramco Cements Limited
Glance View
Founded in the gritty persistence of India's industrial evolution, Ramco Cements Limited stands today as a formidable player in the cement industry. This company, originally known as Madras Cements, began its journey in 1961 and steadily climbed the ranks by embracing innovation and robust business strategies. The company's operations revolve around the intricate science of cement production, achieved through an integrated process involving limestone mining, raw material grinding, clinker production in kilns, and the eventual grinding of clinker with gypsum. This produces the fine powder known as cement, essential for construction. With various manufacturing plants strategically located across Southern India, Ramco Cements capitalizes on regional limestone deposits, ensuring consistency in their raw materials—critical to maintaining product quality in a highly competitive market. Ramco Cements' profitability hinges on its efficient production processes, extensive distribution network, and brand strength, carefully nurtured over decades. By optimizing logistics through well-placed distribution centers and a strong dealer network, the company ensures its product readily reaches the bustling construction hubs. Furthermore, Ramco Cements strategically differentiates itself with value-added products like ready-mix concrete and dry mortar mix, enhancing its portfolio beyond conventional offerings. Such diversification not only captures a broader market but also buffers against the cyclical nature of the cement industry. This dual focus on operational efficiency and market adaptability is the cornerstone of Ramco's financial health, positioning it as a resilient and enduring entity in the ever-dynamic landscape of construction materials.