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Last Updated on: 18 February, 2025
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 532370 | NSE: RAMCOSYS

Ramco Systems Ltd: Share Price Analysis, Intrinsic Value & Fundamentals (2025)

Share Price and Basic Stock Data

Last Updated: February 17, 2025, 10:28 pm

Market Cap 1,126 Cr.
Current Price 303
High / Low 523/262
Stock P/E
Book Value 83.6
Dividend Yield0.00 %
ROCE46.2 %
ROE57.2 %
Face Value 10.0
PEG Ratio0.00

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Ramco Systems Ltd

Competitors of Ramco Systems Ltd

Stock Name Market Cap Current Price High / Low Stock P/E Book Value Dividend Yield ROCE ROE Face Value
Visesh Infotecnics Ltd 125 Cr. 0.33 0.72/0.33 1.140.00 %0.88 %0.82 % 1.00
Mudunuru Ltd 18.4 Cr. 5.89 15.6/5.51 0.340.00 %72.9 %374 % 2.00
Naapbooks Ltd 99.6 Cr. 110 159/51.642.8 20.00.00 %17.4 %13.6 % 10.0
IB Infotech Enterprises Ltd 24.0 Cr. 188 245/11330.8 16.80.53 %69.9 %50.5 % 10.0
Hit Kit Global Solutions Ltd 7.19 Cr. 1.55 1.55/0.9120.0 2.080.00 %1.92 %1.94 % 2.00
Industry Average20,343.43 Cr652.2078.55124.060.79%21.59%63.63%6.89

All Competitor Stocks of Ramco Systems Ltd

Quarterly Result

MetricJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales 140141126124120119128126140127128131137
Expenses 129136134134151159156162165253133129134
Operating Profit 125-8-10-31-40-29-36-25-127-423
OPM % 8%4%-7%-8%-26%-34%-22%-28%-18%-100%-3%2%3%
Other Income 2421111202111
Interest 1111123322211
Depreciation 19191919192021202221212322
Profit before tax -6-11-27-29-50-62-51-57-48-148-27-21-18
Tax % 45%13%-7%-9%1%-2%-2%-20%-3%-1%-2%10%7%
Net Profit -9-13-25-26-51-60-50-45-47-146-26-23-20
EPS in Rs -2.91-4.20-8.18-8.56-16.45-19.57-16.31-12.94-13.27-41.30-7.45-6.50-5.54

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MetricMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales 239263360441449469542569626531492526523
Expenses 248245292360439392453465453532626679649
Operating Profit -9186881107789104173-1-134-153-125
OPM % -4%7%19%18%2%16%16%18%28%-0%-27%-29%-24%
Other Income 88431010109149545
Interest 612124325131071186
Depreciation 33384546485051666975818787
Profit before tax -41-231533-30344234108-73-221-244-214
Tax % -0%4%16%27%-136%66%60%68%47%-1%-6%-1%
Net Profit -41-2413241112171157-73-207-242-214
EPS in Rs -17.14-9.945.198.053.513.705.353.3218.16-23.81-58.71-68.30-60.79
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%

Ramco Systems Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:7%
5 Years:-1%
3 Years:-6%
TTM:9%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:76%
Stock Price CAGR
10 Years:-7%
5 Years:14%
3 Years:-3%
1 Year:-2%
Return on Equity
10 Years:-8%
5 Years:-16%
3 Years:-33%
Last Year:-57%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 2:53 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital 16162430303131313131353537
Reserves 11392228485510523547575621550498276274
Borrowings 28636629805388217063561066360
Other Liabilities 7987102145132160183203226238294294340
Total Liabilities 494561652660677752843978941875933668711
Fixed Assets 324352373273267260264339340356420430433
CWIP 0000000000000
Investments 001233333312217
Other Assets 169208278384407489576636598515502236261
Total Assets 494561652660677752843978941875933668711

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-6-622193788501669240104
Cash from Investing Activity +-51-37-46-44-44-39-57-46-59-85-133-87
Cash from Financing Activity +5942242283646-2-103-9148-56
Net Cash Flow2-2-0-414-324-355-39

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-295.00-348.00-230.0081.005.0039.007.00-66.00110.00-57.00-240.00-216.00

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 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days11714313111993929812210611511366
Inventory Days
Days Payable
Cash Conversion Cycle11714313111993929812210611511366
Working Capital Days12412812514412212512815515113368-55
ROCE %-9%-2%5%7%-5%6%8%7%16%-10%-33%-46%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Jul 2024
Promoters54.38%54.28%54.27%54.28%54.27%52.14%52.12%52.02%51.96%51.89%51.79%53.59%
FIIs0.17%0.28%0.10%0.07%0.07%7.83%7.98%9.69%10.09%10.06%10.00%9.62%
DIIs9.77%8.08%7.91%7.91%7.39%6.21%5.94%5.93%5.94%5.91%5.90%5.66%
Public35.67%37.37%37.72%37.75%38.27%33.82%33.96%32.35%32.02%32.13%32.31%31.13%
No. of Shareholders40,18742,34942,85742,58141,37840,89840,92839,93437,39634,92234,72434,088

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 Plan1,500,0000.0956.63569,8332025-02-14163.24%
HDFC Balanced Advantage Fund - Regular Plan569,8330.0221.51569,8332025-02-140%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue 10.0010.0010.0010.0010.00
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.) 88.85152.16189.32212.96198.41
Book Value[Incl.RevalReserv]/Share (Rs.) 88.85152.16189.32212.96198.41
Revenue From Operations / Share (Rs.) 148.82140.84174.73206.33188.63
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 (%) -28.49-26.151.3529.2919.40
PBIT Margin (%) -45.02-42.43-12.6118.397.90
PBT Margin (%) -46.20-44.43-13.6117.005.79
Net Profit Margin (%) -45.81-41.65-13.548.931.85
NP After MI And SOA Margin (%)-45.84-41.64-13.608.791.76
Return on Networth / Equity (%) -77.70-38.79-12.638.551.67
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) 1.731.301.502.540.52
EV / EBITDA (X) -6.08-4.95110.088.662.68
MarketCap / Net Operating Revenue (X) 1.781.351.512.560.38
Price / BV (X) 3.011.261.412.490.36
Price / Net Operating Revenue (X) 1.781.351.512.560.38
EarningsYield -0.25-0.30-0.080.030.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Ramco Systems Ltd as of February 18, 2025 is: ₹585.31

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.

As of February 18, 2025, Ramco Systems Ltd is Undervalued by 93.17% compared to the current share price ₹303.00

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

Intrinsic Value of Ramco Systems Ltd as of February 18, 2025 is: 243.68

Calculation basis:

  • Intrinsic 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 intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of February 18, 2025, Ramco Systems Ltd is Overvalued by 19.58% compared to the current share price ₹303.00

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

Last 5 Year EPS CAGR: -58.37%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (407.08 cr) compared to borrowings (122.54 cr), indicating strong financial stability.
  1. The stock has a low average ROCE of -4.67%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 112.33, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 109.58, which may not be favorable.
  4. The company has not shown consistent growth in sales (463.85) and profit (-44.62).

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: -45.81%
      • 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: 21.59%)
      • 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%: -77.7% (Industry Average ROE: 63.63%)
      • 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: 0 (Industry average Stock P/E: 78.55)
      • 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
      • 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 - Qualitative Analysis

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 Writing , modifying, testing of computer program to meet the needs of a particular client excluding web-page designing. Company's Total Operating Revenue is Rs. 274.98 Cr. and Equity Capital is Rs. 35.46 Cr. for the Year ended 31/03/2024.
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
Mrs. Soundara KumarIndependent Director
Mr. Sankar KrishnanNon Independent Director
Justice(Retd) P P S Janarthana RajaIndependent Director
Mr. A V DharmakrishnanNon Independent Director
Dr. M S KishnaIndependent Director
Mr. Aravind SrinivasanIndependent Director

FAQ

What is Ramco Systems Ltd's true worth and is it a good investment?

Let's break down Ramco Systems Ltd's valuation simply:

We calculate intrinsic value using the PE Ratio Method - comparing the company's current price-to-earnings ratio with its historical average and industry peers. Think of it like checking if a stock is "on sale" compared to its typical pricing.

As of 17 February 2025:

  • Calculated Fair Value: ₹585.31
  • Current Market Price: ₹303.00
  • Variance: 93.17% higher

This suggests Ramco Systems Ltd is currently undervalued by 93.17%. For context:

  • Market Cap: 1,126 Cr.
  • 52-Week Range: 523/262
  • Reserves (Sep 2024): ₹274 Cr
  • Liabilities: 711 Cr

Remember: The PE method gives a snapshot based on earnings multiples. While useful for quick comparisons, investors should also consider growth prospects, industry trends, and economic conditions. This calculation assumes historical PE ratios remain relevant - always verify with current market dynamics.

What is the Market Cap of Ramco Systems Ltd?

The Market Cap of Ramco Systems Ltd is 1,126 Cr..

What is the current Stock Price of Ramco Systems Ltd as on 17 February 2025?

The current stock price of Ramco Systems Ltd as on 17 February 2025 is ₹303.

What is the High / Low of Ramco Systems Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Ramco Systems Ltd stocks is 523/262.

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 83.6.

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 46.2 %.

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.

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