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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Ramco Systems Ltd

About the Company - Ramco Systems Ltd

Ramco Systems Ltd. is a Public Limited Listed company incorporated on 19/02/1997 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L72300TN1997PLC037550 and registration number is 037550. Currently Company is involved in the business activities of Data processing, hosting and related activities; web portals. Company’s Total Operating Revenue is Rs. 289.82 Cr. and Equity Capital is Rs. 30.85 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & Software47, P S K Nagar, Rajapalayam Tamil Nadu 626108investorcomplaints@ramco.com
http://www.ramco.com
Management
NamePosition Held
Mr. P R Venketrama RajaChairman
Mr. P V Abinav Ramasubramaniam RajaWhole Time Director
Mr. M M VenkatachalamIndependent Director
Mr. R S AgarwalIndependent Director
Mrs. Soundara KumarIndependent Director
Mr. Sankar KrishnanNon Independent Director
Justice(Retd) P P S Janarthana RajaIndependent Director
Mr. A V DharmakrishnanNon Independent Director

Ramco Systems Ltd. Share Price Update

Share PriceValue
Today₹303.10
Previous Day₹313.60

Basic Stock Data of Ramco Systems Ltd

Market Cap 1,070 Cr.
Current Price 303
High / Low357/188
Stock P/E
Book Value 101
Dividend Yield0.00 %
ROCE32.6 %
ROE37.1 %
Face Value 10.0

Data Source: screener.in

Competitors of Ramco Systems Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
R Systems International Ltd 5,418 Cr. 458599/24138.7 51.71.49 %26.0 %24.2 % 1.00
Tera Software Ltd 80.1 Cr. 64.082.5/28.523.1 87.20.00 %%% 10.0
Newgen Software Technologies Ltd 10,728 Cr. 766901/21350.5 69.10.33 %24.0 %20.0 % 10.0
Mphasis Ltd 50,814 Cr. 2,6902,838/1,66032.4 4191.82 %28.9 %21.9 % 10.0
Accel Ltd 146 Cr. 25.335.5/10.481.9 11.11.15 %10.6 %3.77 % 2.00
Industry Average58.22 Cr263.0645.32127.620.96%17.9%13.97%6.6

Ramco Systems Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales160171150140141126124120119128126140127
Expenses116119120129136134134151159156162165253
Operating Profit445230125-8-10-31-40-29-36-25-127
OPM %27%30%20%8%4%-7%-8%-26%-34%-22%-28%-18%-100%
Other Income5332421111202
Interest3211111123322
Depreciation17171719191919192021202221
Profit before tax293615-6-11-27-29-50-62-51-57-48-148
Tax %42%50%50%-45%-13%7%9%-1%2%2%20%3%1%
Net Profit17187-9-13-25-26-51-60-50-45-47-146
EPS in Rs5.455.832.40-2.91-4.20-8.18-8.56-16.45-19.57-16.31-12.94-13.27-41.30

Ramco Systems Ltd Quarterly Chart

Ramco Systems Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales223239263360441449469542569626531492520
Expenses212248245292360439392453465453532626737
Operating Profit11-9186881107789104173-1-134-216
OPM %5%-4%7%19%18%2%16%16%18%28%-0%-27%-42%
Other Income118843101010914956
Interest361212432513107119
Depreciation28333845464850516669758184
Profit before tax-9-41-231533-30344234108-73-221-304
Tax %5%0%-4%16%27%136%66%60%68%47%1%6%
Net Profit-9-41-2413241112171157-73-207-288
EPS in Rs-3.83-17.14-9.945.198.053.513.705.353.3218.16-23.81-58.71-83.82
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Ramco Systems Ltd Profit & Loss Yearly Chart

Ramco Systems Ltd Growth

Compounded Sales Growth
10 Years:7%
5 Years:1%
3 Years:-5%
TTM:6%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-41%
Stock Price CAGR
10 Years:6%
5 Years:7%
3 Years:-18%
1 Year:43%
Return on Equity
10 Years:-3%
5 Years:-7%
3 Years:-12%
Last Year:-37%

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

Ramco Systems Ltd 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

Ramco Systems Ltd 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%

Ramco Systems Ltd Financial Efficiency Indicators Chart

Ramco Systems Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters54.45%54.45%54.42%54.38%54.28%54.27%54.28%54.27%52.14%52.12%52.02%51.96%
FIIs1.43%1.30%0.58%0.17%0.28%0.10%0.07%0.07%7.83%7.98%9.69%10.09%
DIIs8.58%9.20%9.78%9.77%8.08%7.91%7.91%7.39%6.21%5.94%5.93%5.94%
Public35.53%35.05%35.22%35.67%37.37%37.72%37.75%38.27%33.82%33.96%32.35%32.02%
No. of Shareholders29,99733,32340,18540,18742,34942,85742,58141,37840,89840,92839,93437,396

Ramco Systems Ltd Shareholding Pattern Chart

No. of Ramco Systems Ltd Shareholders

Ramco Systems Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HDFC Flexi Cap Fund - Regular Plan15000000.142.44
HDFC Balanced Advantage Fund - Regular Plan5698330.0216.12

Ramco Systems Ltd ROCE Trend

Ramco Systems Ltd EPS Trend

Ramco Systems Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-65.60-23.8718.203.325.36
Diluted EPS (Rs.)-65.60-23.8718.203.325.36
Cash EPS (Rs.)-35.740.7440.9125.1922.19
Book Value[Excl.RevalReserv]/Share (Rs.)152.16189.32212.96198.41188.99
Book Value[Incl.RevalReserv]/Share (Rs.)152.16189.32212.96198.41188.99
Revenue From Operations / Share (Rs.)140.84174.73206.33188.63179.39
PBDIT / Share (Rs.)-36.842.3760.4436.6131.87
PBIT / Share (Rs.)-59.76-22.0437.9614.9215.19
PBT / Share (Rs.)-62.58-23.8035.0910.9413.82
Net Profit / Share (Rs.)-58.67-23.6718.433.505.51
NP After MI And SOA / Share (Rs.)-58.66-23.7818.143.325.35
PBDIT Margin (%)-26.151.3529.2919.4017.76
PBIT Margin (%)-42.43-12.6118.397.908.46
PBT Margin (%)-44.43-13.6117.005.797.70
Net Profit Margin (%)-41.65-13.548.931.853.06
NP After MI And SOA Margin (%)-41.64-13.608.791.762.98
Return on Networth / Equity (%)-38.79-12.638.551.672.83
Return on Capital Employeed (%)-33.90-10.2815.536.557.79
Return On Assets (%)-22.15-8.385.921.041.94
Long Term Debt / Equity (X)0.000.000.000.010.00
Total Debt / Equity (X)0.070.000.000.150.14
Asset Turnover Ratio (%)0.250.300.350.330.38
Current Ratio (X)1.381.912.391.571.48
Quick Ratio (X)1.381.912.391.571.48
Interest Coverage Ratio (X)-13.041.3521.069.1923.23
Interest Coverage Ratio (Post Tax) (X)-19.77-12.487.421.885.01
Enterprise Value (Cr.)643.60806.421610.29301.04805.72
EV / Net Operating Revenue (X)1.301.502.540.521.47
EV / EBITDA (X)-4.95110.088.662.688.25
MarketCap / Net Operating Revenue (X)1.351.512.560.381.34
Price / BV (X)1.261.412.490.361.27
Price / Net Operating Revenue (X)1.351.512.560.381.34
EarningsYield-0.30-0.080.030.040.02

Ramco Systems Ltd Profitability Ratios (%)

Ramco Systems Ltd Liquidity Ratios

Ramco Systems Ltd Liquidity Ratios (%)

Ramco Systems Ltd Interest Coverage Ratios (X)

Ramco Systems Ltd Valuation Ratios

Fair Value / Intrinsic Value of Ramco Systems Ltd

Fair Value: ₹573.31

The stock is undervalued by 89.21% compared to the current price ₹303

*Investments are subject to market risks

Strength and Weakness of Ramco Systems Ltd

StrengthWeakness
  1. The company has higher reserves (401.08 cr) compared to borrowings (134.62 cr), indicating strong financial stability.
  1. The stock is trading at a high valuation with an average P/B ratio of -2.75 and average Dividend Yield of -4.06%.
  2. The stock has a low average ROCE of -1.00%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 126.92, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 113.42, which may not be favorable.
  5. The company has not shown consistent growth in sales (440.31) and profit (-33.46).

Should I Buy Avance Technologies Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Ramco Systems Ltd:
    1. Net Profit Margin: -41.65%
      • 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: -33.90% (Industry Average ROCE: 24.83%)
      • 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. Interest Coverage Ratio (Post Tax): -19.77
      • 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.
    4. Quick Ratio: 1.38
      • 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.
    5. ✓ Stock P/E of N/A (Industry average Stock P/E: 16.62)
      • 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.
    6. ✓ Total Debt / Equity: 0.07
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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