Ramco Systems

Why is Ramco Systems Ltd falling/rising?

As of 04-Aug, Ramco Systems Ltd's stock price is rising to Rs 592.50, reflecting a 5.0% increase after a trend reversal. This rise is supported by strong long-term performance and increased institutional investment, despite concerns about its fundamental financial health.

As of 04-Aug, Ramco Systems Ltd's stock price is rising, currently at Rs 592.50, reflecting an increase of Rs 28.2 or 5.0%. This upward movement follows a trend reversal after two consecutive days of decline. The stock has outperformed its sector by 5.65% today, indicating a positive shift in market sentiment.<BR><BR>Despite a negative performance over the past week and month, where the stock fell by 1.89% and 25.96% respectively, it has shown strong long-term performance, generating a 52.29% return over the past year and 98.89% over the last three years. This long-term outperformance, coupled with increasing participation from institutional investors—who have raised their stake by 1.19%—suggests growing confidence in the company's potential.<BR><BR>However, it is important to note that the stock's recent rise occurs amidst concerns regarding its long-term fundamental strength, as indicated by a -1.52% CAGR growth in operating profits over the last five years and a weak EBIT to Interest ratio of -12.50. Despite these challenges, the stock's current valuation appears attractive compared to its peers, with a PEG ratio of 0.1, suggesting that it may be undervalued relative to its growth prospects.<BR><BR>In summary, the rise in Ramco Systems Ltd's stock price can be attributed to a combination of a trend reversal after recent declines, strong long-term performance, and increased institutional investment, despite underlying concerns about its fundamental financial health.

Which are the latest news on Ramco Systems?

Are Ramco Systems Ltd latest results good or bad?

Ramco Systems Ltd's latest results are concerning, with a 97.60% decline in net profit to ₹0.60 crores and a 6.79% revenue drop quarter-on-quarter, leading to a 10% stock price decrease. The high tax rate and lowest operating margin in seven quarters raise questions about the company's financial sustainability.

The latest results for Ramco Systems Ltd are concerning. In Q1 FY27, the company reported a net profit of just ₹0.60 crores, which represents a dramatic decline of 97.60% compared to the previous quarter's profit of ₹25.05 crores. This significant drop in profitability is alarming and indicates severe operational challenges.<BR><BR>While the company did achieve a year-on-year revenue growth of 7.10%, the revenue declined by 6.79% on a quarter-on-quarter basis, suggesting weakening business momentum. Additionally, the operating margin fell to 14.73%, the lowest in seven quarters, highlighting ongoing issues in managing costs effectively.<BR><BR>Another critical concern is the unusually high tax rate of 83.77%, which consumed nearly all of the pre-tax profit, further exacerbating the profit collapse. This situation raises questions about the sustainability of the company's business model and its ability to generate consistent profits.<BR><BR>The market reacted negatively to these results, with the stock price dropping by 10% in a single day, reflecting investor disappointment and concern over the company's financial health. Overall, the latest results indicate a challenging environment for Ramco Systems, and the outlook appears uncertain.

Should I buy, sell or hold Ramco Systems Ltd?

When is the next results date for Ramco Systems Ltd?

The next results date for Ramco Systems Ltd is 23 July 2026.

The next results date for Ramco Systems Ltd is scheduled for 23 July 2026.

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

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