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Market Update

Markets recently have been In the downward trajectory with small and midcap stocks beaten heavily. This correction is going to continue in the coming weeks and may get even steeper. There would be no reason even if stocks goes down 20-30%, so please don’t send queries such as why this stock is going down etc etc. Valuations which we have seen recently will take time to come back. Companies which had hit 52 week high in recent weeks may not trade at the same price. We had clearly advised users before few weeks to start booking partial profits when the markets were rising. Also we had said that the returns which we have seen over last 1-2 years, such returns will not be generated in the coming period as well as we had also asked users to invest keeping in mind the long term time frame.

Recently, a lot of users have been sending queries that the stocks they have purchased are down and they are in loss, what is the reason for the fall , how long should we keep on holding these stocks , when can we expect positive returns etc

Once again markets are at all time peak and if you are lured by the returns of past 1-2 years then you are definitely committing a grave mistake by investing in market at this point. If you have purchased anything and you are in loss then there is nothing anyone can do nor you can do anything about it except booking loss or holding those stocks patiently. In case you are not aware of how holding stock patiently can reward you handsomely in the longer run then do check the returns of Sahyadri Industries and HIL at the end of this report.

Averaging is strictly not advised at this point as we have no idea when will market hit the bottom.

Our Strategy

What we at darkhorsestocks are doing is for example lets say we feel that the Fermenta Biotech is good company and we are thinking to buy 100 shares of the company. So what we do is we buy 20 shares of the company initially.  Additionally with each dip we keep we feel that this stock is still good then we keep on adding 10 shares. Thus there by slowly and steading increasing the total quantity to 100 and brining down the cost of purchase.

We are not experts in predicting broader market movements or providing Nifty / Sensex levels . In the past we have many times tried to warn the users and some time we have also been wrong completely. Therefore we don’t try to look at the markets rather we try to look at the individual stocks and how well their businesses are positioned to absorb the shocks emerging from the economy.

In case you have missed to our Previous Market Update audio note



Ramco Industries an almost debt free company part of the 85 years old Ramco Group ,  is engaged in the business of manufacture of Fiber Cement (FC) sheets and Calcium Silicate Boards (CSBs).

Incorporated in 1965, Ramco Industries (RIL) has diverse business activities such as Manufacturing and Sale of Fibre Cement product, Manufacture and export of cotton yarn in the name and style of Sri Ramco Spinners – a 100% EOU.

Ramco’s first plant to manufacture roofing sheets was set up at Arakkonam, Tamil Nadu in 1967. Today with 12 plants across South Asia and a 8,000 strong partner network, Ramco Industries is one of the leading building materials manufacturers in South Asia and has been at the forefront of innovation answering perplexing challenges with definitive solutions.

Apart from the Arakkonam plant, the company operates eight modern plants manufacturing high quality fibre cement roofing sheets in India today such as Gangaikondan – Tamil Nadu, Karur – Karnataka, Maksi – Madhya Pradesh, Silvassa – UT of Dadra & Nagar Haveli, Kharagpur – West Bengal, Vijayawada – Andhra Pradesh, Anjar – Gujarat, Bihiya – Bihar. The present aggregate capacity for Fibre Cement Sheets manufacture in India is over 7 lakh tons per annum.

Company introduced the Ramco Hilux Calcium Silicate Board, a versatile building material, using technology from the A & A Corporation, Japan.These boards are rapidly replacing conventional building materials such as Gypsum boards, Plywood & Plaster of Paris across the international markets by virtue of their sheer versatility. Several landmark and iconic structures that have stood the test of time bear the Hilux stamp of excellence, signifying stronger, safer and aesthetically appealing buildings. Ramco Hilux boards and tiles are manufactured at the world class plant at Keshwana, Rajasthan with a production capacity of 48,000 metric tons per annum.

Group History

Ramco group began its journey around 1938 when Mr.P.A.C Ramasamy Raja setup the first spinning mill at Rajapalayam, which later became the focal point of the Ramco Group. It was later in 1965 when Ramco Industries Limited was founded for the manufacture of fibre cement roofing sheets. Today Ramco Group has grown into US$ 1 billion group with interests in Cement, Dry Wall & Ceiling products, Roofing products, Cotton yarn, Surgical cotton and Computer Software.


Ramco Hilux Best-rated Building Material for Dry walls & Ceilings

Source-: Company (Ramco Industries)

Company’s flagship product in the green line up is Hilux. Ramco Hilux is a Calcium Silicate Board made from siliceous and calcareous materials reinforced with cellulose fibers. The boards are made using laminar process and then HPSC process to give a stable crystalline structure.

Hilux is a superior and economical alternate to Plywoods for Partitions & Panels. Ramco Hilux is perfect for walls, partitions and ceilings and finds applications across a wide spectrum of industries including Healthcare, Hospitality, Educational Institutions, Textile, Engineering, Information Technology, and Manufacturing Units.

Some amazing features of Ramco Hilux are

  • Water Resistance
  • Termite Resistance
  • Lightweight
  • Fire Resistance
  • Sound Insulation
  • Thermal Insulation
  • Luminance
  • Handling and storage
  • Seamless Finish

Ramco Hicem High Impact Fibre Cement Board for Partitions, Walls and Ceilings

Source-: Company (Ramco Industries)

Ramco Hicem Fibre Cement Boards, Tiles and Planks are made using cement, cellulose fibres and special additives. Its laminar process gives it a stable crystalline structure and is made as Audemars Piguet Replica per IS:14862-2000.

Ramco Hicem Boards effectively outperforms existing building materials on all important performance parameters, including flexural strength, impact strength and durability. Hicem Boards are strong, non-combustible, water-resistant and are not affected by pests and termites. This structure brings an added advantage to Ramco Hicem, making it more durable and dynamically stable.

Ramco Hicem Boards have a wide range of dry construction applications in offices, residential, industrial and commercial segments.

Fibre Cement Planks

Ramco Hicem Planks are fibre cement sidings which offer a perfect solution for cladding requirements. Hicem planks are fire resistant, water resistant and termite resistant and have a high impact strength which makes them an ideal choice to protect your exterior walls from extreme climatic conditions.

The autoclaved wood grain texture planks give your exterior a stylish finish and enhance the look of your structures. The planks can be coated with acrylic paint to suit your colour preference

Ramco Greencor -: New Age Roofing

Ramco Greencor is a superior roofing product, manufactured using European Technology and specially developed (PVA), Poly Propylene Fibres to give the world its first ideal industrial roofing sheets. Ramco Greencor roofing sheets are 100% asbestos-free. The qualities that make these non-asbestos roofing sheets stand out are: Keeping interior cool, Zero Noise Pollution, Chemical Resistance.

Ramco Greencor Roofing Sheets gives both durability and productivity compared to metal roofing sheets and are the ideal choice for Pharma, Textile, Manufacturing, Food, Paper & Pulp, Oil Manufacturing, Chemical & Fertilizers, Warehouses, Dairy & Poultry Farms, Railway Stations and Bus Stands

Ramco Poweroof

Ramco Poweroof is made with the superior quality Portland cement and high quality imported chrysotile fibres. Chrysotile has a tensile strength of 28000 kg / sqcm. which is over 8 times greater than that of steel. Ramco Poweroof have given millions of homes, schools, and industries safe shelter, a healthy atmosphere and permanent protection from the elements.

Other Businesses


During the Financial Year 2020-21, the Wind energy was moderate with decrease of 7% compared to last year, from the existing 15 Wind Mills. 

Position regarding Wind Mills was as follows

  • Total Capacity Installed : 16.73 MW
  • Total Units generated : 239 Lakh Units (P.Y: 257 Lakh Units)
  • Income earned: Rs 1456 Lakhs (P.Y: Rs 1559 Lakhs)
    (by generation/sale of power) 


During the year 2020-21, the Unit had produced 25.03 Lakh Kgs. of Cotton Yarn as compared to 25.00 Lakh Kgs. produced during the previous year. The Unit had sold Yarn at 33.28 Lakh Kgs. (including traded yarn) during the year under review as against 30.31 Lakh Kgs. during the year 2019-20. 

During the year under review, the performance of the Cotton yarn division increased when compared to previous year. Increase of yarn selling price, reduction in power cost, due to implementation of energy savings measures and decrease of manpower cost on account of Automation of machineries in the second half year, contributed for growth in the performance of the Company and savings in the operating cost during the year 2020-21. 

Expecting the same Level of moderation in cotton prices & stability in yarn prices, your Directors are hopeful in achieving good results during the year 2021-22. 

The Company is taking various steps to expand its market presence both in domestic and international markets and hope to achieve higher volume of sales in value added yarns in the forthcoming years. 


There was increase in sales during the last year. At a Consolidated level of both the Companies, the Net Sales were INR 22,934 lakhs as against INR 16,414 lakhs during the corresponding previous year.

Key Holdings of Ramco Industries

CompanyShares HeldCurrent PriceValue (approx crs.)
The Ramco Cements Limited4,99,00,2459604800
Rajapalayam Mills Limited1,27,360100012.7
Ramco Systems Limited54,67,376460251
HDFC Limited1,79,200270048.3
HDFC Bank Limited11,00015001.65
HDFC Mutual Fund2,40,4190.30

Normally Holding companies trade at 50-60% discount to its book value as companies holding shares of its other companies are never meant to sell these shares in the open market. Therefore considering 50% holding company discount book value of the Ramco industries comes at around 2557 crores while the market value of the company is around 2500 crores.


For the Quarter ended June 2021

  • Net Sales at Rs 418.82 crore in June 2021 up 37.5% from Rs. 304.60 crore in June 2020.
  • Quarterly Net Profit at Rs. 75.59 crore in June 2021 up 22.25% from Rs. 61.83 crore in June 2020.
  • EBITDA stands at Rs. 82.49 crore in June 2021 up 30.19% from Rs. 63.36 crore in June 2020.
  • Ramcoind EPS has increased to Rs. 9.05 in June 2021 from Rs. 7.40 in June 2020.

For the year ended March 2021

  • Net Sales at Rs 339.53 crore in March 2021 up 46.63% from Rs. 231.56 crore in March 2020.
  • Quarterly Net Profit at Rs. 66.43 crore in March 2021 up 102.22% from Rs. 32.85 crore in March 2020.
  • EBITDA stands at Rs. 57.25 crore in March 2021 up 72.03% from Rs. 33.28 crore in March 2020.
  • Ramcoind EPS has increased to Rs. 7.95 in March 2021 from Rs. 3.93 in March 2020.

Sectorial Outlook

In today’s fast changing building industry, there is a definite shift away from the ubiquitous brick and mortar construction methodology. The construction industry is undergoing a metamorphosis like never before. The need of the hour is greater strength, greater speed, accent on environment friendly materials and of course, superior aesthetics – all at competitive prices . Interior and Exterior * (requires productive coating)

More and more architects, interior designers, builders and end users are making use of Dry walls and ceilings to ensure speedier, cost effective and aesthetically more appealing interiors and exteriors. That’s why Dry Construction building products from Ramco are increasingly being preferred by specifiers and end users.

The construction industry is set to hit a decadal high volume growth of 13% in FY 2021-22 aided by an expected revival in demand from the infrastructure and urban housing sectors in line with 26% increase in budgetary allocation for infrastructure in the Union Budget 2021-22. In addition to these sectors, rural demand is also expected to sustain on the back of higher rural incomes witnessed in FY 2020-21 and by positive farm sentiment with timely rabi sowing and favourable groundwater and reservoir levels, which are likely to boost rabi yields. With favorable monsoon in 2020 in most parts of the country the outlook for Kharif crop too looks promising. PMAY-G is expected to sustain momentum as it utilizes its potential to engage rural workforce and drive rural employment. Sufficient cash inflow in the rural economy could commensurate in rural infrastructure creation thus augmenting cement demand. 

As we are well positioned in the rural markets, we expect to reap the benefit of demand growth there. The Union Budget for the year 2021-22 focused on uplifting of the rural economy, strengthening of the agriculture sector, annual cash incentive for small farmers, infrastructure creation and MSME Sector which would augur well for the industry, subject to tapering of the Covid wave. 


Ramco Industries a part of Ramco group is well positioned to reap benefits from the various government initiatives to boost make in India as well as the rural economy. Company has very stable operating profit margins which have improved drastically over last two years to 16% and it is expected that the same operating profit margins would prevail going forward. Company’s peer companies such as *Sahyadri Industries, *HIL etc have recently rewarded with phenomenal returns over past 1-2 years. Both of these stocks have also been covered previously on darkhorsestocks. Now considering this company on a standalone basis , it has immense value which it derives from its investment in other group companies. Also Ramco Industries is almost debt free as well as company company has cash and equivalents of around 77 crore rupees. Thus going forward with increasing sales and slightest expansion in earning multiples company can deliver significant returns. However considering the broader market outlook the time frame can be anywhere from 2-3 years for any meaningful returns.

*Sahyadri Industries was suggested on Darkhorsestocks on 22 April 2018 when the stock was trading at 300 Rs and since then the stock recently hit 52 week high of 885 Rs thereby delivering 195% returns.

*HIL was first suggested in the beginning of the darkhorsestocks group on Telegram back in 2017 when the stock was trading around 750 Rs and second time it was suggested on 11 February 2019 when it was trading around 1775 Rs since then the stock recently hit 52 week high of 6758 Rs thereby delivering 800% and 280% returns respective since each suggestion.

The reason why above stats have been mentioned is because we personally have been holding those shares since suggestion on darkhorsestocks and we have to highlight to the users of darkhorsestocks the Patience required in order to have significant gains. Users these days don’t have conviction or patience to hold on to the stocks in difficult times and thus end up selling stock at losses and thereby blaming the markets or the people suggesting those stocks. From time to time and once again we are saying , invest in the markets only if you have patience to hold on to the stock for very very long term. Markets are no means of getting rich very quick.

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