The Ramco Cements Limited

“Ramco Cements is a mid-tier cement producer that destroyed shareholder value through aggressive debt-funded expansion, collapsing ROCE from 16% to 5% while the industry consolidates around mega-players with insurmountable scale advantages. Trading at 38.8x earnings and 19x EV/EBITDA for a sub-cost-of-capital business with narrowing moats and misaligned management, there is no margin of safety and no credible path to re-rating. Capital deployed here will compound poorly over any 5-10 year horizon.”