Ramco Systems Ltd (RAMCOSYS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Tanla Platforms

Subex

Fractal Analyt.

Unicommerce

Blue Cloud Soft.

C.E. Info System

Moschip Tech.

Ramco Systems

Nucleus Soft.

Technvision Ven.

Quick Heal Tech

Why is Ramco Systems Ltd ?

Weak Long Term Fundamental Strength with a -1.52% CAGR growth in Operating Profits over the last 5 years

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -12.50
The company has been able to generate a Return on Equity (avg) of 3.62% signifying low profitability per unit of shareholders funds

Flat results in Jun 26

PAT(Q) At Rs 0.60 cr has Fallen at -36.2%
PBDIT(Q) Lowest at Rs 25.45 cr.
OPERATING PROFIT TO NET SALES (Q) Lowest at 14.73%

With ROE of 18.1, it has a Very Expensive valuation with a 6.8 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 68.04%, its profits have risen by 561.2% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Ramco Systems for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ramco Systems

68.04%

1.04

65.41%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.77%

EBIT Growth (5y)

-1.52%

EBIT to Interest (avg)

-12.50

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

1.24

Tax Ratio

3.73%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

13.24%

ROCE (avg)

-21.82%

ROE (avg)

3.62%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.80

EV to EBIT

36.76

EV to EBITDA

14.84

EV to Capital Employed

8.60

EV to Sales

3.23

PEG Ratio

0.07

Dividend Yield

ROCE (Latest)

25.12%

ROE (Latest)

18.10%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

PAT(9M)

At Rs 50.41 cr has Grown at 1,385.97%

ROCE(HY)

Highest at 18.96%

-12What is not working for the Company

PAT(Q)

At Rs 0.60 cr has Fallen at -36.2%

PBDIT(Q)

Lowest at Rs 25.45 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 14.73%

PBT LESS OI(Q)

Lowest at Rs 1.26 cr.

NON-OPERATING INCOME(Q)

is 63.48 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs 0.16

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Here's what is not working for Ramco Systems

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 1.26 cr has Fallen at -78.01%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 0.60 cr has Fallen at -36.2%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 25.45 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 14.73%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 1.26 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 63.48 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Earnings per Share (EPS) - Quarterly

Lowest at Rs 0.16

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)