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Last Updated on: 19 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Ramco Systems Ltd

Basic Stock Data

Last Updated: June 19, 2024, 2:26 pm

Market Cap 1,164 Cr.
Current Price 328
High / Low450/245
Stock P/E
Book Value 87.9
Dividend Yield0.00 %
ROCE46.5 %
ROE57.2 %
Face Value 10.0
PEG Ratio0.00

Competitors of Ramco Systems Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ajel Ltd 18.5 Cr. 15.820.7/7.51 12.90.00 %0.55 %0.91 % 10.0
Mastek Ltd 8,370 Cr. 2,7133,147/1,89027.6 6810.70 %18.1 %16.0 % 5.00
Tata Consultancy Services Ltd 13,83,701 Cr. 3,8244,255/3,17229.8 2501.45 %64.3 %51.5 % 1.00
Accedere Ltd 43.1 Cr. 85.696.5/49.4 8.060.00 %1.57 %1.71 % 10.0
KPIT Technologies Ltd 40,572 Cr. 1,4801,764/96168.5 78.30.28 %38.4 %31.2 % 10.0
Industry Average37,461.79 Cr718.5764.34125.280.73%20.01%19.40%6.76

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales150140141126124120119128126140127128131
Expenses120129136134134151159156162165253133129
Operating Profit30125-8-10-31-40-29-36-25-127-42
OPM %20%8%4%-7%-8%-26%-34%-22%-28%-18%-100%-3%2%
Other Income3242111120211
Interest1111112332221
Depreciation17191919191920212022212123
Profit before tax15-6-11-27-29-50-62-51-57-48-148-27-21
Tax %50%-45%-13%7%9%-1%2%2%20%3%1%2%-10%
Net Profit7-9-13-25-26-51-60-50-45-47-146-26-23
EPS in Rs2.40-2.91-4.20-8.18-8.56-16.45-19.57-16.31-12.94-13.27-41.30-7.45-6.50

Last Updated: June 9, 2024, 2:27 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:00 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales239263360441449469542569626531492526
Expenses248245292360439392453465453532626680
Operating Profit-9186881107789104173-1-134-154
OPM %-4%7%19%18%2%16%16%18%28%-0%-27%-29%
Other Income8843101010914954
Interest61212432513107116
Depreciation333845464850516669758187
Profit before tax-41-231533-30344234108-73-221-244
Tax %0%-4%16%27%136%66%60%68%47%1%6%1%
Net Profit-41-2413241112171157-73-207-242
EPS in Rs-17.14-9.945.198.053.513.705.353.3218.16-23.81-58.71-68.30
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)41.46%154.17%84.62%-54.17%9.09%41.67%-35.29%418.18%-228.07%-183.56%-16.91%
Change in YoY Net Profit Growth (%)0.00%112.70%-69.55%-138.78%63.26%32.58%-76.96%453.48%-646.25%44.51%166.65%

Growth

Compounded Sales Growth
10 Years:7%
5 Years:-1%
3 Years:-6%
TTM:7%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-17%
Stock Price CAGR
10 Years:6%
5 Years:10%
3 Years:-14%
1 Year:31%
Return on Equity
10 Years:-8%
5 Years:-16%
3 Years:-33%
Last Year:-57%

Last Updated: June 16, 2024, 4:56 pm

Ramco Systems Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital16161624303031313131313535
Reserves15011392228485510523547575621550498322
Borrowings199286366298053882170635610681
Other Liabilities677987102145132160183203226238294285
Total Liabilities432494561652660677752843978941875933724
Fixed Assets282324352373273267260264339340356420427
CWIP0000000000000
Investments00012333333125
Other Assets150169208278384407489576636598515502293
Total Assets432494561652660677752843978941875933724

Reserves and Borrowings Chart

Ramco Systems Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 21-6-622193788501669240
Cash from Investing Activity -42-51-37-46-44-44-39-57-46-59-85-133
Cash from Financing Activity 245942242283646-2-103-9148
Net Cash Flow32-2-0-414-324-355

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-295.00-348.00-230.0081.005.0039.007.00-66.00110.00-57.00-240.00-217.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days112117143131119939298122106115113
Inventory Days
Days Payable
Cash Conversion Cycle112117143131119939298122106115113
Working Capital Days12012412812514412212512815515113368
ROCE %-2%-9%-2%5%7%-5%6%8%7%16%-10%-33%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters54.45%54.42%54.38%54.28%54.27%54.28%54.27%52.14%52.12%52.02%51.96%51.89%
FIIs1.30%0.58%0.17%0.28%0.10%0.07%0.07%7.83%7.98%9.69%10.09%10.06%
DIIs9.20%9.78%9.77%8.08%7.91%7.91%7.39%6.21%5.94%5.93%5.94%5.91%
Public35.05%35.22%35.67%37.37%37.72%37.75%38.27%33.82%33.96%32.35%32.02%32.13%
No. of Shareholders33,32340,18540,18742,34942,85742,58141,37840,89840,92839,93437,39634,922

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Flexi Cap Fund - Regular Plan1,500,0000.142.44569,8332024-06-15163.24%
HDFC Balanced Advantage Fund - Regular Plan569,8330.0216.12569,8332024-06-150%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-68.51-65.60-23.8718.203.32
Diluted EPS (Rs.)-68.51-65.60-23.8718.203.32
Cash EPS (Rs.)-43.58-35.740.7440.9125.19
Book Value[Excl.RevalReserv]/Share (Rs.)88.86152.16189.32212.96198.41
Book Value[Incl.RevalReserv]/Share (Rs.)88.86152.16189.32212.96198.41
Revenue From Operations / Share (Rs.)148.31140.84174.73206.33188.63
PBDIT / Share (Rs.)-42.40-36.842.3760.4436.61
PBIT / Share (Rs.)-67.00-59.76-22.0437.9614.92
PBT / Share (Rs.)-68.76-62.58-23.8035.0910.94
Net Profit / Share (Rs.)-68.18-58.67-23.6718.433.50
NP After MI And SOA / Share (Rs.)-68.24-58.66-23.7818.143.32
PBDIT Margin (%)-28.59-26.151.3529.2919.40
PBIT Margin (%)-45.17-42.43-12.6118.397.90
PBT Margin (%)-46.36-44.43-13.6117.005.79
Net Profit Margin (%)-45.97-41.65-13.548.931.85
NP After MI And SOA Margin (%)-46.00-41.64-13.608.791.76
Return on Networth / Equity (%)-77.69-38.79-12.638.551.67
Return on Capital Employeed (%)-58.26-33.90-10.2815.536.55
Return On Assets (%)-36.21-22.15-8.385.921.04
Long Term Debt / Equity (X)0.000.000.000.000.01
Total Debt / Equity (X)0.000.070.000.000.15
Asset Turnover Ratio (%)0.650.250.300.350.33
Current Ratio (X)0.751.381.912.391.57
Quick Ratio (X)0.751.381.912.391.57
Interest Coverage Ratio (X)-24.16-13.041.3521.069.19
Interest Coverage Ratio (Post Tax) (X)-37.84-19.77-12.487.421.88
Enterprise Value (Cr.)913.94643.60806.421610.29301.04
EV / Net Operating Revenue (X)1.741.301.502.540.52
EV / EBITDA (X)-6.08-4.95110.088.662.68
MarketCap / Net Operating Revenue (X)1.791.351.512.560.38
Price / BV (X)3.011.261.412.490.36
Price / Net Operating Revenue (X)1.791.351.512.560.38
EarningsYield-0.25-0.30-0.080.030.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 769.27

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 134.53% compared to the current price 328

Default values used*: Deafault value of 15 for Stock P/E is used

Intrinsic Value: 326.49

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 0.46% compared to the current price ₹328

Default values used*: Deafault value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -57.56%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (418.17 cr) compared to borrowings (127.75 cr), indicating strong financial stability.
  1. The stock has a low average ROCE of -1.00%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 126.92, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 113.42, which may not be favorable.
  4. The company has not shown consistent growth in sales (458.92) and profit (-30.50).

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Ramco Systems Ltd:
    1. Net Profit Margin: -45.97%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: -58.26% (Industry Average ROCE: %)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: -77.69% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): -37.84
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.75
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: (Industry average Stock P/E: )
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.00
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

No data availabale for About the Company
INDUSTRYADDRESSCONTACT
Industry not foundAddress not foundContact not found
Management Data not Available

FAQ

What is the latest fair value of Ramco Systems Ltd?

The latest fair value of Ramco Systems Ltd is ₹769.27.

What is the Market Cap of Ramco Systems Ltd?

The Market Cap of Ramco Systems Ltd is 1,164 Cr..

What is the current Stock Price of Ramco Systems Ltd as on 19 June 2024?

The current stock price of Ramco Systems Ltd as on 19 June 2024 is ₹328.

What is the High / Low of Ramco Systems Ltd stocks in FY 2024?

In FY 2024, the High / Low of Ramco Systems Ltd stocks is 450/245.

What is the Stock P/E of Ramco Systems Ltd?

The Stock P/E of Ramco Systems Ltd is .

What is the Book Value of Ramco Systems Ltd?

The Book Value of Ramco Systems Ltd is 87.9.

What is the Dividend Yield of Ramco Systems Ltd?

The Dividend Yield of Ramco Systems Ltd is 0.00 %.

What is the ROCE of Ramco Systems Ltd?

The ROCE of Ramco Systems Ltd is 46.5 %.

What is the ROE of Ramco Systems Ltd?

The ROE of Ramco Systems Ltd is 57.2 %.

What is the Face Value of Ramco Systems Ltd?

The Face Value of Ramco Systems Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Ramco Systems Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE