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Check Before You Invest : Ramco Systems Ltd

BSE: 532370 NSE: RAMCOSYS ISIN: INE246B01019
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Ramco Systems Ltd belong to?
Ramco Systems Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Ramco Systems Ltd a good quality company?
Ramco Systems Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Ramco Systems Ltd undervalued or overvalued?
Ramco Systems Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Ramco Systems Ltd a good buy now?
Ramco Systems Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Ramco Systems Ltd?
Ramco Systems Ltd revenue growth is 12.5% for FY-2025 , which is above its 5 year CAGR of 0.8% , indicating faster growth.
Q.2 Gross Profit margin of Ramco Systems Ltd?
Ramco Systems Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.9% for FY-2025 , which is above its 5 year median of 0.4% , indicating increasing margins.
Q.3 Operating Profit Margin of Ramco Systems Ltd?
Ramco Systems Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.21% for FY-2025 , which is above its 5 year median of 0.13% indicating increasing margins.
Q.4 Net Profit Margin of Ramco Systems Ltd?
Ramco Systems Ltd Net Profit Margin is -5.79% for FY-2025 , is above with its 5 year median of -13.73%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 12.9 0.4
Operating Profit Margin 7.21 0.13
Net Profit Margin -5.79 -13.73
Q.5 Return on Asset of Ramco Systems Ltd?
Ramco Systems Ltd Return on Asset is -5.33%, which is above its 5 year historical median of -8.05%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Ramco Systems Ltd?
Ramco Systems Ltd Return on equity is -13.02% for FY-2025 , which is in line with its historical median of -13.02%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Ramco Systems Ltd?
Ramco Systems Ltd Return on capital employed is -6.54% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Ramco Systems Ltd?
Ramco Systems Ltd Cash conversion cycle is 7 days, below its historical median of 53 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.92 0.66
ROE -13.02 -13.02
ROCE -6.54 -10.83
Cash Conversion Cycle 7 days 53 days
Q.9 Debt to Equity ratio of Ramco Systems Ltd?
Ramco Systems Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.01 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Ramco Systems Ltd?
Ramco Systems Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Ramco Systems Ltd?
Promoters hold 53.03% of the Ramco Systems Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Ramco Systems Ltd vs industry peers?
Ramco Systems Ltd revenue CAGR is 0.78% , compared to the industry median CAGR of 2.87% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 591.3 23.3
Gross Profit 76.2 1.8
Operating Profit 38 1
Net Profit -34 0.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.92 0.44
ROE -13.02 3.97
ROCE -6.54 6.41
Cash Conversion Cycle (days) 6.53 36

Valuation & price assessment

Q.1 Stock return of Ramco Systems Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -5.3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price -5.3% -2.7% 26.4% 13.5%
Q.3 Valuation ratios of Ramco Systems Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 74.21 36.07 22.96
Price to Book 5.01 1.29 2.61
Price to Sales 2.45 1.33 4.40
EV to EBITDA 9.72 6.29 17.20

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