The Ramco Cements Limited is an Indian company based out of Chennai. It ranks fifth in the list of largest cement producers in India. In addition to producing and selling different types of cement, the company is also in the business of running wind farms.
As of the second week of August, the market capitalisation of the company was about Rs.15,500 crore.
Ramco Cements’ Wealth and Recent Performance
From the unaudited standalone financial report of the company for the quarter ending June 2018, we can see the following:
- The total revenue of the company fell from Rs.1,273.76 crore in the previous quarter to Rs.1,224.80 crore. But the total revenue for the quarter ending June 2018 was an increase from the total revenue for the same period the previous year.
- The total expenses of the company reduced from Rs.1,068.46 crore in the previous quarter to Rs.1,054.50 crore.
- The company’s net profit after tax increased from Rs.1,085.90 crore in the previous quarter to Rs.1,249.8 crore.
- The paid up equity share capital of the company remained unchanged at Rs.23.56 crore.
Ramco Cements Stock Trends in 2018
In January 2018, the stock opened at about Rs.780. The stock closed at about Rs.718 by the end of July 2018.
- There was a slight spike in the price of the stock in the first week of January 2018. After the end of the second week of January, the stock dropped in price to close for the month at about Rs.758.
- The stock declined further in price in the month of February 2018, once even reaching about Rs.710. But towards the close of the month, the stock recovered a little to close at about Rs.752.
- The stock opened at about Rs.742 in March 2018. The stock fluctuated a lot during the course of the month and closed at about Rs.723 at the end of the month.
- The stock opened at about Rs.741 in April 2018. April marked a period of growth for the stock with the price going over Rs.800 by the mid-second week of the month. The stock reached a peak of about Rs.860 during the course of the month. By the end of the month though, the price dropped from the high of Rs.860 and the stock closed at about Rs.823.
- The stock stayed above Rs.800 during the first three weeks of May 2018. By the last week, the price had begun to drop again and the stock closed at about Rs.773 at the end of the month.
- In June 2018, the stock opened at about Rs.766. The month of June 2018 marked a period of steady decline in the stock price of the company. This resulted in the stock price going below Rs.700 during the month. The stock recovered a little towards the end of the month to close just over Rs.700.
- By the first week of July 2018, the stock had dipped to below Rs.700. Around 20 July 2018, the stock went to a low of about Rs.630. The stock recovered again strongly to close for the month at about Rs.718. A final 300% dividend was announced on 26 July 2018.
Ramco Cements Stock Trends in 2016 and 2017
In January 2016, the stock opened at about Rs.389 and closed in December 2016 at about Rs.548. The entire year marked a period of growth for the stock.
- While the stock opened at about Rs.389 in the month of January 2016, it dipped in price in the second week of the month. The stock price reached a low of about Rs.360 for the month and then recovered to close at about Rs.389 for the month. The price declined throughout February 2016 to close at about Rs.359 at the end of the month. The company’s stock opened at about Rs.366 for March 2016 and rose throughout the month to close at about Rs.399 at the end of the month. An interim 300% dividend was announced on 18 March 2016.
- In April 2016, the stock price breached the Rs.400 mark and kept climbing steadily until the latter part of the month. The price reached a high of about Rs.468 during the month. Then, the share price dipped to close for the month at about Rs.450. May 2016 marked a period of strong growth for the company with the price rising to about Rs.491 by the end of the month. June 2016 also marked a period of tremendous growth for the company with the share price going over Rs.500. By the end of the month, the stock had reached about Rs.553.
- In July 2016, the stock price climbed even higher, crossing Rs.575 during the first week of the month. After a high of Rs.592, the stock price declined a little in value, closing at about Rs.549 for the end of the month. There were a number of fluctuations in share price in August 2016 and the stock closed for the month at about Rs.577. In September 2016, the stock price rose to over Rs.600 but dipped again to close for the month at about Rs.595.
- The stock’s price again breached the Rs.600 mark in October 2016 and reached a high of about Rs.660 by the end of the second week of the month. Then, the share price dipped steadily to close for the month at about Rs.634. The price dipped further in November 2016, going as low as Rs.523 at one point but recovered to close for the month at about Rs.610. The stock declined in price throughout December 2016 and closed for the month at about Rs.548.
In January 2017, the stock opened at about Rs.558 and closed at about Rs.785 in December 2017. There were about three major periods of growth for the stock with a number of fluctuations in between.
- January 2017 marked the first sustained period of growth for the company’s stock price in that year. The stock breached both the Rs.600 mark and the Rs.700 mark in the same month. The stock closed for the month at about Rs.702. In February 2017, the stock declined in price to close for the month at about Rs.665. In March, the share price declined further but rallied later to close for the month at about Rs.672.
- The stock price remained largely steady for about two weeks in April 2017 and closed for the month at about Rs.687. There was a slight increase again in May which was offset by a decrease later. The company’s stock then rallied to close at about Rs.724 for the month. June 2017 marked a period of decline for the stock with the price going down to around Rs.694 at the end of the month.
- The stock price declined a little in July 2017 and closed for the month at about Rs.678. A final 300% dividend was announced on 27 July 2017. It remained below Rs.700 for the entirety of August 2017 and then closed at about Rs.690 at the end of the month. September 2017 marked the next growth period for Ramco Cement stock. This resulted in the price peaking at about Rs.752 during the course of the month. It then declined to close for the month at about Rs.692.
- While there were no major increases in the price during the course of October 2017, the stock increased in price towards the end of the month to close at about Rs.720 for the month. It peaked about Rs.733 during the month of November and then declined in price closing at about Rs.700 at the end of the month. December 2017 marked the next period of growth for the company with the stock moving past the Rs.800 price point. It declined later to close for the month at about Rs.785.
Should You Invest in Ramco Cements?
- Ramco Cements claims to be the fifth largest producer of cements in India.
- The company specialises in different varieties of cement.
- The company has plants all over India.
- The company is also in the business of generating electricity using windfarms and has already installed four such farms in South India.
- The total expenses of the company reduced and the net profit after taxes improved in the first quarter of 2018–2019 compared to the previous quarter.
- The company also has some textile holdings.
- At present, there is a construction boom in India.
- Considering all this, it could be said that investing in this company could be beneficial but it would be best to invest after performing adequate research based on personal preferences and risk appetites.
The company has around seven manufacturing units in South India. The company also has four grinding units. The company has four windfarms, the combined capacity of which comes to about 125.95 MW.
History of the Company
The Ramco Cements was begun in the year 1961 by Shri P A C Ramasamy Raja. His son Ramasubrahmaneya Rajah grew the company to its present level. The company began paying dividends to shareholders under his control. The company claims to give the best returns to its investors. The first cement plant was set up in 1962. A second plant was set up in 1987. While the first plant was set up in Tamil Nadu, the second was set up in Andhra Pradesh. Two more plants were added and these were both installed in Tamil Nadu. The company’s first Windfarm was set up in Tamil Nadu. From this time, the company grew from strength to strength. The company claims to be the fifth largest producer of cement in India.
Management of the Company
The management of the company is headed by a board of directors comprising the following individuals:
Shri. P. R. Venketrama Raja - Chairman and Managing Director
Shri. R. S. Agarwal
Shri. M. B. N. Rao
Shri. M. M. Venkatachalam
Justice Smt. Chitra Venkataraman (Retd.)
Shri. M. F. Farooqui
The Chairman, Mr. Venketrama Raja has an MBA degree from the USA. He has maintained his position on the board of the Ramco Cements since the year 1985. With over three decades of experience, he is intimately familiar with the workings of industries like the textile industry, the cement industry, and the information technology sector.
Ramco Cements Listings in NSE, BSE, and Other Indices
The company is listed on the BSE and the NSE under the following codes:
ISIN Code: INE331AQ1037
The company is part of indices like Nifty 200, Nifty 500, Nifty Midcap 150, S&P BSE 500 and S&P BSE Basic Materials among others.
In addition to the BSE and NSE, the company is also listed on Bangalore Stock Exchange Limited, Calcutta Stock Exchange Association Limited, and MCX Stock Exchange among others.
The company’s registered office is located at: “Ramamandiram,” Rajapalayam - 626 117
The company’s postal address is: The Ramco Cements Limited, (Formerly Madras Cements Limited), Auras Corporate Centre, 98-A, Dr. Radhakrishnan Salai, Mylapore, Chennai - 600 004
Telephone number: 044 2847 8666
Fax number: 044 2847 8676
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