Why is Ramco Systems falling/rising?

Jun 27 2025 09:27 PM IST
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As of 27-Jun, Ramco Systems Ltd is currently priced at 415.00, reflecting a 1.47% increase and outperforming its sector. Despite a strong one-year return of 30.13%, concerns about its long-term fundamentals, including negative operating profit growth, pose risks to future performance.
As of 27-Jun, Ramco Systems Ltd is experiencing a price increase, currently at 415.00, reflecting a change of 6.0 or 1.47% upward. Today's price summary indicates that the stock outperformed its sector by 1.76%, reaching an intraday high of Rs 418.9, which is a 2.42% increase. Despite a recent decline in delivery volume by 38.12% against the 5-day average, the stock remains liquid enough for trading. Over the past year, Ramco Systems has generated a return of 30.13%, significantly outperforming the market's return of 4.10%. However, it is important to note that the company has shown weak long-term fundamental strength, with a -194.23% CAGR growth in operating profits over the last five years, which raises concerns about its profitability and ability to service debt.

In the broader market context, the stock's short-term performance over the past week shows a return of +8.07%, compared to the Sensex's +2.00%, indicating a strong relative performance. While the stock has demonstrated impressive returns in the last year, its recent price movement is tempered by concerns regarding its long-term fundamentals, including negative operating profits and a low return on equity. These factors contribute to a complex picture where the stock is currently rising, yet faces significant risks that could impact its future performance.
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