Ramco Systems

Why is Ramco Systems Ltd falling/rising?

As of 02-Sep, Ramco Systems Ltd's stock is declining by 1.83%, underperforming its sector, with weak long-term fundamentals and disappointing recent financial results contributing to the negative sentiment. Despite increased investor participation, challenges in profitability and debt servicing are evident, leading to a perception of the stock as expensive.

As of 02-Sep, Ramco Systems Ltd's stock price is currently falling, with a change of -10.8, representing a decrease of 1.83%. This decline is reflected in today's performance, where the stock underperformed its sector by 1.08%. The stock touched an intraday low of Rs 575, marking a decrease of 2.64% during the trading session.<BR><BR>Despite a positive trend in investor participation, with a notable increase in delivery volume by 18.63% against the 5-day average, the overall sentiment appears to be negatively impacted by weak long-term fundamental strength. The company has experienced a -1.52% compound annual growth rate (CAGR) in operating profits over the last five years, indicating challenges in sustaining profitability. Additionally, the company's ability to service its debt is weak, as evidenced by a poor EBIT to Interest ratio of -12.50.<BR><BR>Furthermore, the recent quarterly results have shown a significant decline, with a profit after tax (PAT) of Rs 0.60 crore falling by 36.2%, and the lowest operating profit to net sales ratio recorded at 14.73%. These factors contribute to a perception of the stock as expensive, with a price-to-book value of 6.2, despite its historical performance of generating a 36.31% return over the past year. Overall, the combination of weak fundamentals and disappointing recent financial results is driving the stock price lower.

Which are the latest news on Ramco Systems?

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's strategic direction and ensuring regulatory 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 guiding the company's strategic direction and ensuring compliance with regulatory requirements.

What does Ramco Systems do?

Ramco Systems Ltd is a global provider of enterprise software solutions, established in 1989, with a market capitalization of INR 2,203 Cr. As of June 2026, it reported net sales of 173 Cr and a net profit of 1 Cr.

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>Ramco Systems Limited was established in February 1989. The latest quarterly results reported net sales and profit for June 2026.<BR><BR>Financial Snapshot:<BR>- Net Sales: 173 Cr (Quarterly Results - Jun 2026)<BR>- Net Profit: 1 Cr (Quarterly Results - Jun 2026)<BR>- Market-cap: INR 2,203 Cr (Small Cap)<BR><BR>Key Metrics:<BR>- P/E: 34.00<BR>- Industry P/E: 22<BR>- Dividend Yield: 0.00%<BR>- Debt Equity: -0.24<BR>- Return on Equity: 18.10%<BR>- Price to Book: 6.22<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

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., Subex, Unicommerce, and Quick Heal Tech. In terms of performance, Ramco Systems has a 1-year return of 36.35%, with below-average management and capital structure risks compared to its peers.

Peers: The peers of Ramco Systems are Tanla Platforms, C.E. Info System, Moschip Tech., Technvision Ven., Nucleus Soft., Blue Cloud Soft., Subex, Unicommerce, and Quick Heal Tech.<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., Subex, and Quick Heal Tech. Below Average management risk is noted for Moschip Tech. and Ramco Systems. Growth is Excellent at Moschip Tech. and Unicommerce, while Average growth is seen at Technvision Ven. and Blue Cloud Soft., and Below Average growth is present at Tanla Platforms, C.E. Info System, Ramco Systems, Nucleus Soft., Subex, and Quick Heal Tech. Excellent capital structure is noted for Tanla Platforms, C.E. Info System, Nucleus Soft., and Technvision Ven., while Good capital structure is found at Moschip Tech., Subex, and Quick Heal Tech., and Below Average capital structure is observed at Ramco Systems and Blue Cloud Soft.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Moschip Tech. at 26.97%, while Quick Heal Tech. has the lowest at -52.52%. Ramco Systems has a 1-year return of 36.35%, which is higher than both of these peers. Additionally, the six-month return is negative for Technvision Ven., Nucleus Soft., Blue Cloud Soft., and Quick Heal Tech.

How big is Ramco Systems?

As of 31st August, Ramco Systems Ltd has a market capitalization of 2,203.00 Cr, with recent net sales of 712.41 Cr and a net profit of 41.50 Cr. Shareholder's funds are 349.97 Cr, and total assets amount to 722.06 Cr as of March 2026.

As of 31st August, Ramco Systems Ltd has a market capitalization of 2,203.00 Cr, categorizing it as a Small Cap company.<BR><BR>In the latest four quarters, Ramco Systems reported Net Sales of 712.41 Cr and a Net Profit of 41.50 Cr.<BR><BR>The latest reporting period for the balance sheet is March 2026, with Shareholder's Funds amounting to 349.97 Cr and Total Assets of 722.06 Cr.

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.

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