The Ramco Cements Upgraded to 'Hold' by MarketsMOJO, Technical Factors Support Upgrade

The Ramco Cements, a largecap company in the cement industry, has recently been upgraded to a 'Hold' by MarketsMOJO. This upgrade is based on various technical factors, such as the stock being in a bullish range and showing improvement in its technical trend. Since November 21, 2024, the stock has generated a return of 6.01%.
In terms of valuation, the company has a fair ROCE of 6.3 and a 2.3 Enterprise value to Capital Employed. Additionally, the stock is currently trading at a discount compared to its average historical valuations. However, over the past year, the stock has only generated a return of 0.79%, while its profits have fallen by -20.8%.

One positive aspect for the company is its high institutional holdings at 40.86%. This indicates that these investors have better resources and capabilities to analyze the fundamentals of the company compared to retail investors.

On the other hand, the company has shown poor long-term growth with an annual rate of -2.26% in operating profit over the last 5 years. In the latest quarter, the company's PAT(Q) has fallen by -64.3% and its OPERATING PROFIT TO INTEREST (Q) is at its lowest at 2.62 times. Additionally, its NET SALES(Q) are also at their lowest at Rs 2,044.13 cr.

In the last 1 year, The Ramco Cements has underperformed the market, generating a return of only 0.79% compared to the market (BSE 500) returns of 27.32%. While the stock may have some bullish technical indicators, its poor long-term growth and recent negative results suggest a 'Hold' stance for now.