Key Events This Week
9 Feb: Quarterly results reveal flat performance with record net sales and PAT
10 Feb: Quality grade upgraded from below average to average
11-13 Feb: Stock retreats amid margin pressure and weak market sentiment
13 Feb: Week closes at Rs.470.35, outperforming Sensex decline
9 February: Quarterly Results Spark Initial Rally
Ramky Infrastructure Ltd kicked off the week with a strong 4.63% gain to close at Rs.478.05, buoyed by its quarterly results for December 2025. The company reported record net sales of ₹488.92 crores and a profit after tax of ₹78.52 crores, marking the highest quarterly figures in recent history. Earnings per share stood at ₹11.35, signalling improved profitability on a per-share basis.
Despite these encouraging topline and PAT numbers, the company’s core operating profit before tax (excluding other income) declined by 14.08% to ₹43.58 crores. This indicated that a significant portion of profitability was supported by non-operating income, which accounted for 58.64% of PBT in the quarter. Operational metrics such as return on capital employed (ROCE) remained subdued at 15.30%, the lowest in recent periods, reflecting ongoing efficiency challenges.
The stock’s strong performance on this day contrasted with the Sensex’s more modest 1.04% gain, highlighting investor optimism about the stabilisation of Ramky’s financials despite lingering concerns.
10 February: Quality Upgrade Boosts Sentiment
Following the positive quarterly results, Ramky Infrastructure’s quality grade was upgraded from below average to average on 1 January 2026, with a Mojo Score of 37.0 and a Mojo Grade of Sell. This upgrade reflected improvements in profitability metrics such as return on equity (ROE) at 16.53% and return on capital employed (ROCE) at 12.22%, alongside robust five-year EBIT growth of 38.60% outpacing sales growth of 10.62%.
The stock gained a further 0.78% to close at Rs.481.80, its weekly high, outperforming the Sensex’s 0.25% rise. However, concerns remained over elevated leverage, with a debt to EBITDA ratio averaging 5.87 and net debt to equity at 1.45, alongside a modest EBIT to interest coverage ratio of 1.70. Institutional holding was low at 2.02%, and pledged shares accounted for 25.70%, signalling potential risks.
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11-13 February: Profit Taking Amid Operational Concerns and Market Weakness
After reaching the weekly high on 10 February, Ramky Infrastructure’s stock retreated over the next three trading sessions. On 11 February, the price slipped 0.65% to Rs.478.65 despite the Sensex gaining 0.13%, reflecting profit booking and caution over margin pressures highlighted in the quarterly results.
The downtrend accelerated on 12 and 13 February, with the stock falling 1.22% and 0.52% respectively, closing the week at Rs.470.35. This decline coincided with a weakening Sensex, which dropped 0.56% and 1.40% on those days, indicating broader market headwinds impacting the stock.
Operational challenges such as a declining debtors turnover ratio to 3.79 times and the lowest half-yearly debt-equity ratio of 0.30 times suggest working capital pressures and cautious capital management. The company’s reliance on non-operating income to support profitability and modest interest coverage ratio continue to temper enthusiasm.
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Daily Price Performance vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.478.05 | +4.63% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.481.80 | +0.78% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.478.65 | -0.65% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.472.80 | -1.22% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.470.35 | -0.52% | 36,532.48 | -1.40% |
Key Takeaways
Positive Signals: Ramky Infrastructure demonstrated resilience with record quarterly net sales and PAT, signalling stabilisation after prior declines. The quality grade upgrade to average reflects improved profitability metrics and earnings growth momentum. The stock outperformed the Sensex by 3.48% over the week, closing higher despite market weakness.
Cautionary Notes: Core operating profit declined, with heavy reliance on non-operating income raising sustainability concerns. Operational efficiency remains a challenge, with low ROCE and slower debtor turnover. Elevated leverage and modest interest coverage ratios pose financial risks, compounded by low institutional holding and significant pledged shares. The stock’s retreat in the latter half of the week underscores sensitivity to margin pressures and broader market volatility.
Conclusion
Ramky Infrastructure Ltd’s week was characterised by a blend of optimism and caution. The company’s record quarterly revenue and profit figures, alongside a quality upgrade, provided a foundation for early gains and outperformance relative to the Sensex. However, operational challenges, margin pressures, and financial leverage tempered enthusiasm, leading to a partial pullback in the stock price as the week progressed.
Investors should closely monitor Ramky’s ability to convert improved earnings into sustainable core profitability and operational efficiency, while managing leverage and working capital effectively. The stock’s performance this week reflects a transitional phase, balancing positive fundamental developments against persistent risks in a volatile market environment.
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