Industry Profile: Cement production in India from FY 07 to FY 17grow at 9.75% CAGR. Due to many reasons, the Demand growth rate for cement is outpacing supply growth in FY 16. After China (2483.18 million tonnes), India is the second-largest cement producer (285.83 million tonnes). Though the difference is vast. A lot of untapped infrastructure and development potential of 100 smart cities is sufficient considerable boost for the Cement Sector. Demand for cement is predominantly from the Housing sector, at 67%, infrastructure at 13%, Commercial constriction at 11%, and Industrial construction at 9%. The cement manufacturing capacity of India was 420 MT in March 2017, with a growth of 6% per year. The capacity of cement is mainly in the hands of a few plants. 188 large cement plants are manufacturing 98% cement, 365 plants accounting for the remaining. Andhra Pradesh, Rajasthan, and Tamilnadu account for 77 large plants out of 188. As per analyst estimates, India will be the leading exporter of gray cement to the Middle East in the next ten years.
Company Profile: Ramco Cements Limited was incorporated in 1957 and is headquartered in Chennai, India. The company was formerly Madras Cements Ltd. and changed its name to The Ramco Cements Limited in July 2013. Ramco Cements Limited is the flagship company of the Ramco Group, a business group based in Chennai, South India. It is the fifth-largest cement producer in India.
Ramco Cements Limited manufactures and sells cement and cementitious materials in India. The company offers Portland Pozzolana, OPC, sulfate resisting, sleeper grade, rapid hardening Portland cement, and ready-mix concrete and dry mortar products under the RAMCO brand. It is also involved in generating and selling electricity from windmills and thermal power plants. As of March 31, 2018, the company operated a wind farm with an installed capacity of 125.95 MW comprising 108 wind electric generators. Ramco Cements Limited also exports its products.
Shareholding Pattern: BSE Filing
Financials and ratios: [table id=217 /]
Future Prospects: Cement stocks were going through a rough time, but now it looks like the uptrend will start after the Lok Sabha election. In between Binani game changed many things. Because Cement is a half commodity, you can’t ignore branding Ultratech is one prominent opponent. Many items are happening in South India, so I don’t see any significant long-term issues.
