Current Rating and Its Implications
MarketsMOJO’s 'Sell' rating for Ramky Infrastructure Ltd indicates a cautious stance towards the stock, suggesting that investors may want to consider reducing exposure or avoiding new purchases at this time. This rating reflects a comprehensive evaluation of the company’s quality, valuation, financial trend, and technical indicators as they stand today. While the rating was revised on 09 February 2026, the detailed assessment below is based on the most recent data available as of 15 February 2026, ensuring an up-to-date perspective for market participants.
Quality Assessment: Average Fundamentals Amidst Debt Concerns
As of 15 February 2026, Ramky Infrastructure’s quality grade is assessed as average. The company’s ability to service its debt remains a significant concern, with an EBIT to Interest coverage ratio averaging just 1.70. This low ratio indicates limited cushion to meet interest obligations, raising questions about financial stability in a challenging environment.
The latest half-yearly results show a Return on Capital Employed (ROCE) at a modest 15.30%, which is the lowest in recent periods, signalling subdued operational efficiency. Profit Before Tax excluding other income (PBT less OI) for the quarter stands at ₹43.58 crores, reflecting a decline of 14.08% compared to previous quarters. Additionally, the Debtors Turnover Ratio is at a low 3.79 times, suggesting slower collection cycles and potential working capital pressures.
Valuation: Attractive but Reflective of Risks
The valuation grade for Ramky Infrastructure is currently attractive, implying that the stock trades at a relatively low price compared to its earnings and asset base. This valuation discount may be a reflection of the market’s cautious view on the company’s financial health and growth prospects. Investors should note that while the stock appears inexpensive, the underlying risks related to debt servicing and operational performance temper the attractiveness.
Financial Trend: Flat Performance with Underlying Challenges
The financial trend for Ramky Infrastructure is flat, indicating a lack of significant improvement or deterioration in recent quarters. The company’s performance has been largely stagnant, with key metrics such as profitability and operational efficiency showing little upward momentum. This flat trend is underscored by the stock’s returns over various time frames as of 15 February 2026: a 1-day decline of 1.07%, a 1-month drop of 6.23%, and a 3-month fall of 27.51%. Over the past year, the stock has underperformed the broader market, delivering a negative return of 6.64% while the BSE500 index gained 11.06%.
Technical Outlook: Bearish Momentum Persists
Technically, Ramky Infrastructure is graded bearish, reflecting downward momentum in the stock price and weak market sentiment. The recent price action shows a consistent decline over the medium term, with the stock losing 15.62% over six months and 15.92% year-to-date. This bearish technical stance suggests that the stock may face continued selling pressure unless there is a significant change in fundamentals or market conditions.
Additional Considerations: Promoter Pledging and Market Risks
Investors should also be aware that 25.7% of promoter shares are pledged, which can exert additional downward pressure on the stock price, especially in volatile or falling markets. High promoter pledging often signals potential liquidity risks and can be a red flag for long-term investors.
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What This Rating Means for Investors
The 'Sell' rating on Ramky Infrastructure Ltd advises investors to exercise caution. Given the company’s average quality, attractive valuation tempered by financial flatness, and bearish technical outlook, the stock currently presents more risks than opportunities. Investors holding the stock may consider trimming their positions to manage downside risk, while prospective buyers should carefully weigh the company’s debt servicing challenges and subdued financial trends before committing capital.
It is important to monitor upcoming quarterly results and any changes in promoter share pledging, as these factors could materially impact the stock’s outlook. Additionally, broader market conditions and sector-specific developments in the construction industry will influence Ramky Infrastructure’s performance going forward.
Summary of Key Metrics as of 15 February 2026
Market Capitalisation: Smallcap segment
Mojo Score: 37.0 (Sell Grade)
Quality Grade: Average
Valuation Grade: Attractive
Financial Grade: Flat
Technical Grade: Bearish
Debt Servicing (EBIT to Interest): 1.70
ROCE (Half Year): 15.30%
PBT less Other Income (Quarterly): ₹43.58 crores, down 14.08%
Debtors Turnover Ratio (Half Year): 3.79 times
Promoter Shares Pledged: 25.7%
Stock Returns: 1D -1.07%, 1W +2.37%, 1M -6.23%, 3M -27.51%, 6M -15.62%, YTD -15.92%, 1Y -6.64%
These figures collectively underpin the current 'Sell' rating and highlight the need for investors to approach Ramky Infrastructure Ltd with prudence.
Looking Ahead
While the company’s valuation appears attractive, the combination of flat financial trends, weak debt servicing ability, and bearish technical signals suggests limited upside in the near term. Investors should keep a close watch on operational improvements, debt reduction efforts, and market sentiment shifts that could alter the stock’s trajectory.
In summary, the 'Sell' rating reflects a balanced view of the risks and opportunities facing Ramky Infrastructure Ltd as of 15 February 2026, guiding investors to prioritise capital preservation and risk management in their portfolio decisions.
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