Ramco Cements Limited
NSE:RAMCOCEM

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Ramco Cements Limited
NSE:RAMCOCEM
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Price: 958.5 INR -3.37% Market Closed
Market Cap: ₹226.5B

EV/OCF

16.2
Current
5%
Cheaper
vs 3-y average of 17.1

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.

EV/OCF
16.2
=
Enterprise Value
₹306.1B
/
Operating Cash Flow
₹16B

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.

EV/OCF
16.2
=
Enterprise Value
₹306.1B
/
Operating Cash Flow
₹16B

Valuation Scenarios

Ramco Cements Limited is trading below its 3-year average

If EV/OCF returns to its 3-Year Average (17.1), the stock would be worth ₹1 009.47 (5% upside from current price).

Statistics
Positive Scenarios
3/4
Maximum Downside
-3%
Maximum Upside
+45%
Average Upside
13%
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

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close
Market Cap EV/OCF P/E
IN
Ramco Cements Limited
NSE:RAMCOCEM
226.5B INR 16.2 39.4
IE
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
Amrize AG
SIX:AMRZ
24.4B CHF 15.4 25.9
DE
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

In line with most companies in India
Percentile
34rd
Based on 2 183 companies
34rd percentile
16.2
Low
0.1 — 14.7
Typical Range
14.7 — 39.6
High
39.6 —
Distribution Statistics
India
Min 0.1
30th Percentile 14.7
Median 23.4
70th Percentile 39.6
Max 28 676

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.

RAMCOCEM Intrinsic Value
732.68 INR
Overvaluation 24%
Intrinsic Value
Price ₹958.5
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