1. At a Glance – Cement Sheet King Sitting on ₹3,388 Cr Investments
Ramco Industries is trading at ₹312 with a market cap of ₹2,706 Cr. Now here’s the plot twist: it holds investments worth ₹3,388 Cr on its balance sheet and the disclosed market value of investments is ₹5,215 Cr — which is almost double the market cap.
Q3 FY26 numbers? Sales at ₹389 Cr (up 13.08% YoY) and PAT at ₹112 Cr (up 26.08% YoY). EPS for the quarter stands at ₹12.91. TTM EPS is ₹29.29, giving it a P/E of 10.6 versus industry median of 13.9.
Debt? Just ₹174 Cr. Debt-to-equity? 0.04. Basically almost debt-free.
But wait — ROE is only 4.37% and ROCE is 3.61%. That’s not sexy. That’s “I attend the gym but only for selfies.”
So what is this really?
A fiber cement roofing company?
A cotton yarn side hustle?
A windmill hobby project?
Or a holding company sitting on valuable listed stakes?
Let’s open the asbestos sheet and see what’s underneath.
2. Introduction – The Calm, Conservative Cousin of the Ramco Empire
Ramco Industries is part of the Chennai-based Ramco Group. It has been in the AC roofing business for over 50 years and is one of four large players controlling ~75% of the domestic market.
Fifty years. That’s older than most IPO hype cycles.
Its main business is building products — fiber cement sheets and calcium silicate boards. But here’s the twist: it also owns 21.4% of The Ramco Cements Limited and 20% of Ramco Systems Limited.
So when you buy Ramco Industries, are you buying roofing sheets or cement and ERP software exposure?
That’s like going to buy dosa and accidentally getting pizza free.
But the real question is — why is ROE just 4% when investments are so large? Are they sleeping on assets?
Let’s break this into pieces.
3. Business Model – WTF Do They Even Do?
Segment Split FY24:
- Building Products – 87%
- Textiles – 10%
- Wind & Others – 3%
1️ Building Products – The Real Engine
Manufactures:
- Fibre Cement Boards
- Insulation Boards
- Calcium Silicate Boards
Brands include Ramco Hilux, Hicem, Greencor, Poweroof.
They also launched:
- HIDEN (High Density Fibre Cement Board)
- Ramco Smart Build Services (design + execution + training in dry construction)
Capacity:
- 10 manufacturing plants
- 10,00,000 TPA building products capacity
They are expanding with a ₹180 Cr Maksi plant (58,000 MT p.a.).
But here’s a thought — is 58,000 MT big enough to move the needle when total capacity is 10 lakh MT?
2️ Textiles – The Side Business
Sri Ramco Spinners produces cotton yarn (60s, 30s, 20s, 16s counts).
Yarn sold in FY24: 28.08 lakh kgs (down from 30.31 lakh kgs in FY20).
Cotton business is
