Ramco Systems

Why is Ramco Systems Ltd falling/rising?

As of 23-Jun, Ramco Systems Ltd's stock price is rising to 560.50, driven by a remarkable 401.6% growth in net profit and increased promoter confidence with a 2.65% stake increase. Despite some long-term concerns, the stock has significantly outperformed the benchmark Sensex, with a 44.87% return over the past year.

As of 23-Jun, Ramco Systems Ltd's stock price is rising, currently at 560.50, reflecting a change of 2.65 (0.48%) upward. This increase can be attributed to several positive factors. The company recently reported a remarkable growth in net profit of 401.6%, alongside positive results for the last five consecutive quarters. Additionally, the profit before tax (PBT) has grown significantly at 320.44%, and the profit after tax (PAT) has increased by 371.8%. The return on capital employed (ROCE) is also at a high of 18.96%, indicating strong operational efficiency.<BR><BR>Moreover, there is rising promoter confidence, as promoters have increased their stake in the company by 2.65% over the previous quarter, now holding 55.68% of the company. This increase in stake is often viewed as a sign of confidence in the company's future prospects. <BR><BR>In terms of market performance, the stock has outperformed the benchmark Sensex, generating a return of 44.87% over the past year, while the Sensex has declined by 6.96%. Furthermore, the stock has shown strong performance over the last three years, with a return of 126.19%, significantly outperforming the benchmark.<BR><BR>Despite some concerns regarding long-term fundamental strength, such as a -8.05% compound annual growth rate (CAGR) in operating profits over the last five years and a weak EBIT to interest ratio, the current positive financial results and rising promoter confidence are contributing to the stock's upward movement.

Which are the latest news on Ramco Systems?

Should I buy, sell or hold Ramco Systems Ltd?

How big is Ramco Systems?

As of 10th June, Ramco Systems Ltd has a market capitalization of 2,110.00 Cr, with recent net sales of 700.96 Cr and a net profit of 41.84 Cr. Shareholder's funds are 315.78 Cr, and total assets amount to 644.31 Cr.

As of 10th June, Ramco Systems Ltd has a market capitalization of 2,110.00 Cr, categorizing it as a Small Cap company.<BR><BR>In the latest four quarters, Ramco Systems reported Net Sales of 700.96 Cr and a Net Profit of 41.84 Cr.<BR><BR>The latest annual period for the balance sheet is March 2025, with Shareholder's Funds amounting to 315.78 Cr and Total Assets of 644.31 Cr.

Who are in the management team of Ramco Systems?

The management team of Ramco Systems includes key members such as P R Venketrama Raja (Chairman), P V Abinav Ramasubramaniam Raja (Whole-time Director), and several Non-Executive & Independent Directors. They are responsible for guiding the company and ensuring governance compliance.

The management team of Ramco Systems includes the following key members:<BR><BR>1. **P R Venketrama Raja** - Chairman (Non-Executive)<BR>2. **M M Venkatachalam** - Non-Executive & Independent Director<BR>3. **A V Dharmakrishnan** - Non-Executive & Non-Independent Director<BR>4. **R S Agarwal** - Non-Executive & Independent Director<BR>5. **Soundara Kumar** - Non-Executive & Independent Director<BR>6. **P V Abinav Ramasubramaniam Raja** - Whole-time Director<BR>7. **Sankar Krishnan** - Non-Executive & Non-Independent Director<BR>8. **Vijaya Raghavan NE** - Company Secretary & Compliance Officer<BR>9. **P P S Janarthana Raja** - Non-Executive & Independent Director<BR><BR>This team plays a crucial role in steering the company and ensuring compliance with governance standards.

Who are the peers of the Ramco Systems?

Ramco Systems' peers include Tanla Platforms, C.E. Info System, Moschip Tech, Technvision Ven., Nucleus Soft, Blue Cloud Soft, Unicommerce, Quick Heal Tech, and Subex. In terms of management risk, growth, and capital structure, they vary, with Ramco Systems showing average management risk and below average capital structure, while its 1-year return is 19.57%.

Peers: The peers of Ramco Systems are Tanla Platforms, C.E. Info System, Moschip Tech., Technvision Ven., Nucleus Soft., Blue Cloud Soft., Unicommerce, Quick Heal Tech, and Subex.<BR><BR>Quality Snapshot: Excellent management risk is observed at C.E. Info System and Nucleus Soft., while Average management risk is found at Tanla Platforms, Technvision Ven., Blue Cloud Soft., Quick Heal Tech, Subex, and Ramco Systems. Good management risk is noted at Moschip Tech. and Unicommerce. Below Average management risk is present at Moschip Tech. Growth is Excellent at Moschip Tech., Blue Cloud Soft., and Unicommerce, while Below Average growth is seen at Tanla Platforms, C.E. Info System, Technvision Ven., Ramco Systems, Nucleus Soft., Quick Heal Tech, Subex, and the rest. Capital Structure is Excellent for Tanla Platforms, C.E. Info System, Nucleus Soft., and Technvision Ven., while Average capital structure is found at Blue Cloud Soft., and Good at Moschip Tech., Quick Heal Tech, and Subex, with Ramco Systems having a Below Average capital structure.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Technvision Ven. at 36.48%, while C.E. Info System has the lowest at -56.54%. Ramco Systems' 1-year return is 19.57%, which is higher than C.E. Info System but lower than Technvision Ven. Additionally, several peers, including C.E. Info System, Unicommerce, Quick Heal Tech, Nucleus Soft., and Subex, have negative six-month returns.

What does Ramco Systems do?

Ramco Systems Ltd is a small-cap global provider of enterprise software solutions, part of the Ramco Group, with net sales of 185 Cr and a net profit of 25 Cr for the quarter ending March 2026. Key metrics include a market cap of INR 2,110 Cr, a P/E ratio of 32.00, and a return on equity of 18.10%.

Overview:<BR>Ramco Systems Ltd is a global provider of enterprise solutions and services in the software products industry, categorized as a small-cap company.<BR><BR>History:<BR>Established in February 1989, Ramco Systems Limited is part of the Chennai-based Ramco Group. The latest quarterly results reported net sales and net profit for the period ending March 2026.<BR><BR>Financial Snapshot:<BR>Net Sales: 185 Cr (Quarterly Results - Mar 2026) <BR>Net Profit: 25 Cr (Quarterly Results - Mar 2026) <BR>Market Cap: INR 2,110 Cr (Small Cap)<BR><BR>Key Metrics:<BR>P/E: 32.00 <BR>Industry P/E: 20 <BR>Dividend Yield: 0.00% <BR>Debt Equity: -0.24 <BR>Return on Equity: 18.10% <BR>Price to Book: 5.81 <BR><BR>Contact Details:<BR>Address: 47 PSK Nagar, Rajapalayam, Tamil Nadu: 626108 <BR>Tel: 91-4563-235688 <BR>Email: secretarial@ramco.com <BR>Website: http://www.ramco.com

Are Ramco Systems Ltd latest results good or bad?

Ramco Systems Ltd's latest Q4 FY26 results show strong revenue growth with net sales up 19.39% year-on-year and net profit soaring 668.40% quarter-on-quarter. However, concerns remain regarding declining operating margins and low return ratios, suggesting ongoing challenges that could impact long-term growth.

Ramco Systems Ltd's latest results for Q4 FY26 indicate a significant turnaround, showcasing both revenue growth and a substantial increase in net profit. The company reported net sales of ₹185.36 crores, which is a 19.39% increase year-on-year and the highest quarterly revenue in its recent history. Additionally, the net profit surged to ₹25.05 crores, representing a remarkable 668.40% increase quarter-on-quarter and a 371.75% increase year-on-year.<BR><BR>While these results reflect a positive momentum, there are underlying concerns. The operating margin slightly declined to 24.33%, and the company has faced a weak five-year growth trajectory, with return ratios like ROE at just 0.64% and ROCE at -22.88%. This indicates ongoing challenges in capital efficiency and profitability sustainability.<BR><BR>Overall, the recent quarterly performance can be seen as a positive development, but the company still grapples with structural issues that could affect its long-term growth prospects. Investors should remain cautious and monitor future performance to determine if this turnaround is sustainable.

When is the next results date for Ramco Systems Ltd?

The next results date for Ramco Systems Ltd is 21 May 2026.

The next results date for Ramco Systems Ltd is scheduled for 21 May 2026.

Is Ramco Systems technically bullish or bearish?

As of December 4, 2025, the technical trend is bullish with strong indicators like MACD and Bollinger Bands supporting this view, although caution is advised due to a mildly bearish signal from Dow Theory.

As of 4 December 2025, the technical trend has changed from mildly bullish to bullish. The current stance is bullish with strong indicators supporting this view. The MACD is bullish on both the weekly and monthly time frames, and Bollinger Bands also indicate a bullish trend in both time frames. Daily moving averages are bullish, reinforcing the positive momentum. However, the Dow Theory shows a mildly bearish signal on the weekly chart, which suggests some caution. Overall, the strength of the bullish stance is supported by multiple indicators, despite the mixed signals from Dow Theory and OBV.

How has been the historical performance of Ramco Systems?

Ramco Systems has shown fluctuating net sales and profitability, with net sales increasing to 591.34 Cr in March 2025 from 525.83 Cr in March 2024, despite a negative profit before tax of -26.54 Cr. The company improved its operating profit to 81.17 Cr and cash flow from operations to 113 Cr, indicating a recovery despite ongoing challenges.

Answer:<BR>The historical performance of Ramco Systems shows a fluctuating trend in net sales and profitability over the years, with a notable recovery in the latest fiscal year.<BR><BR>Breakdown:<BR>Ramco Systems reported net sales of 591.34 Cr for the year ending March 2025, an increase from 525.83 Cr in March 2024 and 492.22 Cr in March 2023, although lower than the 626.31 Cr recorded in March 2021. The total operating income followed a similar pattern, reaching 591.34 Cr in March 2025. The company faced total expenditure of 515.70 Cr in March 2025, significantly reduced from 680.24 Cr in March 2024, contributing to an operating profit (PBDIT) of 81.17 Cr, a substantial improvement from the negative figures in the previous two years. However, the profit before tax remained negative at -26.54 Cr, while the profit after tax was -34.29 Cr, indicating ongoing challenges despite the operational recovery. The total assets of the company were reported at 644.31 Cr in March 2025, slightly up from 640.41 Cr in March 2024, while total liabilities also increased marginally to 644.31 Cr. The cash flow from operating activities improved to 113 Cr in March 2025, reflecting a positive trend in cash generation, with a net cash inflow of 17 Cr for the year.

Is Ramco Systems overvalued or undervalued?

As of November 6, 2025, Ramco Systems is considered very expensive and overvalued with a PE ratio of 276.41 and negative ROCE and ROE, despite a strong stock performance of 52.35% year-to-date.

As of 6 November 2025, the valuation grade for Ramco Systems has moved from risky to very expensive, indicating a significant shift in its market perception. The company is currently overvalued, with a PE ratio of 276.41, a Price to Book Value of 8.84, and an EV to EBIT of 113.08, all of which are substantially higher than industry norms. In comparison, TCS, a peer in the software products industry, has a PE ratio of 21.66 and an EV to EBITDA of 8.47, while Infosys shows a PE of 21.66 and an EV to EBITDA of 4.9, highlighting the stark contrast in valuation metrics.<BR><BR>Despite Ramco Systems' impressive stock performance, with a year-to-date return of 52.35% compared to the Sensex's 6.62%, the underlying financial ratios suggest that the stock is not justified at its current price level. The company's ROCE and ROE are notably negative at -35.64% and -29.04%, respectively, further supporting the conclusion that Ramco Systems is overvalued in the current market environment.

Who are the top shareholders of the Ramco Systems?

The top shareholders of Ramco Systems include Ramco Industries Limited as the largest promoter with 19.07%, institutional investors holding 15.15% (including mutual funds and FIIs), and individual investors owning 25.92% of the shares. HDFC Trustee Company Limited is the highest public shareholder with a 5.55% stake.

The top shareholders of Ramco Systems include several key players. The majority of the shares are held by promoters, with Ramco Industries Limited being the largest promoter, holding 19.07%. In terms of institutional investors, 3 mutual fund schemes collectively hold 5.55%, and 26 foreign institutional investors (FIIs) own 9.6%. Additionally, HDFC Trustee Company Limited, through the HDFC Flexi Cap Fund, is the highest public shareholder with a stake of 5.55%. Individual investors collectively hold 25.92% of the shares.

Has Ramco Systems declared dividend?

No Dividend History Available