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Ramco Systems Ltd. Stock Analysis

Small Cap
Evaluated by 689 users | BSE: 532370 | NSE: RAMCOSYS |
IT - Software
Ramco Systems, part of the Ramco Group, has delivered enterprise software and services since 1989. Today, Ramco is a global provider with customers in 35 countries and more than 1,800 employees in 9 countries.To keep pace with today’s customer-driven business environment, companies must...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Ramco Systems Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 4.04%-2.55%-9.22%-4.07%4.72%4.27%3.86%2.08%3.65%2.21%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 204223239263360441449469542569
Y-o-Y Gr. Rt.-9.3%7.3%10%37%22.3%1.9%4.5%15.5%4.9%
Adjusted EPS (Rs.) 1.83-6.82-24.45-15.816.436.646.123.336.311.86
Y-o-Y Gr. Rt.--472.7%NANANA3.3%-7.8%-45.6%89.5%-70.5%
Book Value per Share (Rs.) 105.7101.5677.5364.14101.26161.94167.34171.95179.76188.78
Adjusted Net Profit 3-10.9-40.4-26.415.519.918.610.219.35.7
Net Op. Cash Flow (Rs. Cr.) 24.120.7-6.2-6.521.918.836.77.78.450.5
Debt to Cash Flow from Ops 6.489.64-46.21-56.2313.5700.144.959.771.91
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Ramco Systems Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 12.1%9.6%8.2%4.9%
Adjusted EPS 0.2%-22%-32.8%-70.5%
Book Value per Share 6.713.34.15
Share Price 23.1% -13.2% -3.2% 111.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 1.76-6.43-27.46-22.368.585.193.531.863.410.96
Operating Profit Margin (%) 16.363.53-3.925.0419.9616.874.6816.0517.1617.2
Net Profit Margin (%) 1.3-4.75-17-10.044.284.434.162.193.651.09
Debt to Equity 0.911.22.243.411.200.010.070.150.17
Working Capital Days 202224225245235267296305323359
Cash Conversion Cycle 8427286837552313957
Entity Percentage Holding
Promoters 54.70%
Institutions 9.07%
Non-Institutions 36.22%
Pledged *0.900.900.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Ramco Systems and arrived at the following conclusion:

Past 10 year's financial track record indicates that Ramco Systems is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Ramco Systems's performance infers:

Ramco Systems earnings have declined by -22%, whereas share price has depreciated -13.2% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Ramco Systems share prices over the last 10 years. Here is what we found out:

Ramco Systems share price has depreciated 11.8% annually over the past ten years.

Ramco Systems, part of the Ramco Group, has delivered enterprise software and services since 1989. Today, Ramco is a global provider with customers in 35 countries and more than 1,800 employees in 9 countries.

To keep pace with today’s customer-driven business environment, companies must re-think their business processes. Enterprise applications now need to adapt to the business, and not the other way around. As companies face increasing competitive pressure and are inhibited by

Ramco Systems, part of the Ramco Group, has delivered enterprise software and services since 1989. Today, Ramco is a global provider with customers in 35 countries and more than 1,800 employees in 9 countries.

To keep pace with today’s customer-driven business environment, companies must re-think their business processes. Enterprise applications now need to adapt to the business, and not the other way around. As companies face increasing competitive pressure and are inhibited by inefficient IT systems, it is clear that current enterprise applications are no longer meeting the business demands.

Ramco delivers solutions that address this with flexible enterprise applications that can be delivered quickly and cost-effectively into complex environments. It also gives companies the agility they need to stay competitive by enabling fast, flexible deployment and change on demand of business applications. Ramco VirtualWorks ensures maximum flexibility to execute a business process strategy - so when business needs change systems change automatically.

Clientele

The company is having a long list of clients it 100,000+ users in 1,000 customer locations across 35 countries. Select customers include, ABB Ltd., Adams (Thailand) Ltd., Amtek Auto Ltd., Columbia Helicopters, East India Hotels, ICICI Bank, JK Cement, Lotte India, Jeju Air etc.

Solutions offered by the company:

  • Application Maintenance: Ramco Application Development and Maintenance Services can enhance your existing portfolio with custom applications spanning across technology platforms. Our consultants work with you to assess the system’s weaknesses and build personalized a solution to significantly reduce your Total Cost of Ownership (TCO).
  • Infrastructure Maintenance: Ramco was the first company to provide global enterprise resource planning (ERP)-on-demand. They remain the premiere source for all your IT function needs, providing comprehensive, end-to-end infrastructure management services.By working with their customers to help them adopt best practices, they can streamline your infrastructure and substantially reduce your total cost of ownership.
  • Validation Services: From a large-scale transformation initiative to specific point solutions, Ramco offers your business end-to-end validation services for enterprise applications, integration technologies, compliance, and web applications. Their unique tools and methodologies ensure that the entire production meets expectations with consistently high quality.
  • OnDemand ERP: Ramco OnDemand ERP solution is a monthly subscription model for growing business. The solution streamlines and integrates multiple functions and systems into one solution and gives total visibility and control of operations.  As easy to use as e-mail, it requires minimal training and can be accessed from anywhere.
  • Business Process Outsourcing: Ramco platform-based business process outsourcing services span your enterprise function needs, including finance and accounting; human resource management systems; and procurement and analytics. Whether you want to outsource your existing technology platform or move to their best of breed platform-based solutions, they will work with you to design a system tailored to your business goals and objectives.

Achievements:

  • KPMG Maturity Level 5 of the Capability Maturity Model Integrated Software Discipline.
  • ISO 9001 : 2000 
  • ISO 27001
  • Ernst and Young Software Certification for Financial Application

Future plans :

Ramco is planning to Introduce Corebanking Analytics Solution. Ramco targets 5,000 users by March next for ERP service

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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