Ramco Industries Ltd, a part of the Chennai-based Ramco Group, is a prominent player in the Indian building materials sector. The company specializes in the manufacture of Fiber Cement (FC) sheets and Calcium Silicate Boards (CSBs). Beyond building materials, Ramco Industries also has diverse business interests, including the spinning of cotton yarn, sale of surplus electricity generated from its windmills, and computer software.
Incorporated in January 1965, Ramco Industries Limited (RIL) is a key entity within the larger Ramco Group, which boasts a ₹1200 Crore valuation with interests spanning Cement, Fibre Cement products, Cotton Yarn, and Information Technology. The company operates through distinct segments: building products, textiles, and power generation from windmills, establishing itself as a significant and diversified industrial entity in India.
The core of Ramco Industries' operations lies in its building products division, manufacturing Fiber Cement Sheets (FCS) and Calcium Silicate Boards (CSBs). These products serve various construction needs, with corrugated sheets primarily used for roofing in both industrial and housing sectors, and flat sheets utilized for internal applications like partitions and false ceilings.
The company has consistently invested in modern technology and manufacturing capabilities. A new state-of-the-art plant for Calcium Silicate Boards was commissioned during 2013-14, enhancing its production prowess. Furthermore, new products such as HIDEN (High Density Fibre Cement Boards) and Hilux lite (Low Density Calcium Silicate Tiles) were launched in FY2023-24, showcasing a commitment to product innovation.
Beyond building materials, RIL diversifies its revenue streams through its textile division, Sri Ramco Spinners, a 100% Export Oriented Unit (EOU) engaged in the manufacture and export of cotton yarn, ranging from 4s to 300s counts. The company also generates and sells surplus electricity from its windmills located in Tamil Nadu, Karnataka, and Gujarat, contributing to a healthy revenue diversity.
Ramco Industries boasts 10 manufacturing facilities across India for its building products division, complemented by one facility in Rajapalayam, Tamil Nadu, for cotton yarn production, and multiple windmills for power generation.
Ramco Industries has also established an international footprint through its 100% subsidiary, Sri Ramco Lanka (Private) Limited, in Sri Lanka. This subsidiary is actively involved in manufacturing and marketing FC sheets in the country. Further solidifying its presence, M/s. Sri Ramco Roofings Lanka Private Limited (SRRLPL) was incorporated in Sri Lanka in November 2010 as a subsidiary of SRLPL. SRRLPL commenced commercial operations in March 2012, with an annual capacity of 1,20,000 M.T. for Fibre Cement Products at its facility in Pallegodowatta Industrial Estate, Mathugama.
Ramco Industries Ltd commands a market capitalization of ₹2,477 Crore (as of July 01, 2025), showing a 13.5% increase over the last year. The company reported a revenue of ₹1,659 Crore and a profit of ₹181 Crore.
The company has demonstrated robust financial growth, with net profit jumping an impressive 236.96% year-on-year to ₹88.89 Crore in Q3 FY2024-2025. For the first half of fiscal year 2025, RIL, on a consolidated basis, reported a profit after tax (PAT) of ₹49 Crore (compared to ₹40 Crore in the corresponding period of fiscal 2024) on a net revenue of ₹896 Crore (compared to ₹803 Crore).
• Stock P/E: 13.7
• Book Value: ₹488
• Dividend Yield: 0.35%
• ROCE: 3.61%
• ROE: 4.36%
• Face Value: ₹1.00
• Promoter Holding: 54.8%
Ramco Industries maintains an established position in the domestic asbestos cement (AC) sheet (ACS) roofing market, bolstered by its strong presence in the Sri Lankan market. The company also benefits from healthy revenue diversity through its involvement in textiles, calcium silicate board production, and wind power generation, which collectively enhance its overall market standing.
A significant indicator of the company's financial strength is its almost debt-free status. Furthermore, the stock is trading at 0.59 times its book value, suggesting an attractive valuation. Notably, the market value of its investments, at ₹4,538 Crore, significantly exceeds its market capitalization of ₹2,477 Crore. This disparity highlights substantial underlying value in the company's investment portfolio, offering a strong foundation and potential for future growth.
Despite its strengths, Ramco Industries has experienced a poor sales growth of 11.2% over the past five years. The company also recorded a low return on equity (ROE) of 3.42% over the last three years. These metrics indicate that the company faces ongoing challenges in achieving robust top-line growth and maximizing profitability, suggesting areas that require strategic focus and improvement.
The AC roofing business, a significant segment for Ramco Industries, is highly dependent on rural spending, making it susceptible to fluctuations in the rural economy. The availability and pricing of key raw material, asbestos fiber, also pose a significant risk. Additionally, the company faces intense competition from both peers within the fiber cement industry and from substitute steel products. There is also an exposure to regulatory risks concerning the manufacture and use of asbestos, as well as potential changes in policies of key asbestos-producing countries.
Ramco Industries Ltd is led by P R Venketrama Raja, who serves as the chairman, with S Balamurugasundaram as the company secretary. The promoter group includes P R Venketrama Raja, S S Ramachandra Raja, N K Shrikantan Raja, S Balamurugasundaram, P V Abinav Ramasubramaniam Raja, Ajay B Baliga, Hariharan Thiagarajan, P P S Janarthana Raja, and Soundara Kumar.
The company operates in a specialized segment of the building materials industry, facing competition from established peers such as BirlaNu Ltd, BIGBLOC Construction Ltd, Everest Industries Ltd, and Visaka Industries Ltd.
Ramco Industries Ltd stands as a well-established player in India's building materials sector, distinguished by its diversified business model encompassing fiber cement products, textiles, and renewable energy. While the company navigates growth challenges and market dependencies, its strong financial position, near debt-free status, and valuable investment portfolio provide a solid foundation for future development and sustained presence in the market.
