BSE:532370

Stock Analysis Report

Executive Summary

Ramco Systems Limited operates as an enterprise software company in India and internationally.


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

How has Ramco Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532370's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.7%

532370

-1.7%

IN Software

-0.07%

IN Market


1 Year Return

-33.1%

532370

-16.5%

IN Software

9.5%

IN Market

Return vs Industry: 532370 underperformed the Indian Software industry which returned -16.5% over the past year.

Return vs Market: 532370 underperformed the Indian Market which returned 9.5% over the past year.


Shareholder returns

532370IndustryMarket
7 Day-2.7%-1.7%-0.07%
30 Day-26.0%-5.1%-1.3%
90 Day9.2%0.7%1.9%
1 Year-33.1%-33.1%-15.7%-16.5%11.5%9.5%
3 Year-59.1%-59.1%-15.0%-22.0%23.6%16.7%
5 Year-75.4%-75.4%-0.8%-15.2%35.5%22.9%

Price Volatility Vs. Market

How volatile is Ramco Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Ramco Systems undervalued compared to its fair value and its price relative to the market?

26.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 532370 (₹155.05) is trading below our estimate of fair value (₹207.54)

Significantly Below Fair Value: 532370 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 532370 is poor value based on its PE Ratio (19.1x) compared to the Software industry average (12.2x).

PE vs Market: 532370 is poor value based on its PE Ratio (19.1x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: 532370 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 532370 is good value based on its PB Ratio (0.8x) compared to the IN Software industry average (1x).


Next Steps

Future Growth

How is Ramco Systems forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

52.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532370's forecast earnings growth (52.4% per year) is above the savings rate (6.5%).

Earnings vs Market: 532370's earnings (52.4% per year) are forecast to grow faster than the Indian market (20.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 532370's revenue (13.1% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 532370's revenue (13.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 532370's Return on Equity is forecast to be low in 3 years time (9.7%).


Next Steps

Past Performance

How has Ramco Systems performed over the past 5 years?

-7.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532370 has high quality earnings.

Growing Profit Margin: 532370's current net profit margins (4.3%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: 532370's earnings have declined by -7.5% per year over the past 5 years.

Accelerating Growth: 532370's earnings growth over the past year (108.3%) exceeds its 5-year average (-7.5% per year).

Earnings vs Industry: 532370 earnings growth over the past year (108.3%) exceeded the Software industry -5.4%.


Return on Equity

High ROE: 532370's Return on Equity (4.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ramco Systems's financial position?


Financial Position Analysis

Short Term Liabilities: 532370's short term assets (₹3.9B) exceed its short term liabilities (₹2.7B).

Long Term Liabilities: 532370's short term assets (₹3.9B) exceed its long term liabilities (₹901.0M).


Debt to Equity History and Analysis

Debt Level: 532370's debt to equity ratio (15.5%) is considered satisfactory.

Reducing Debt: 532370's debt to equity ratio has reduced from 113% to 15.5% over the past 5 years.

Debt Coverage: 532370's debt is not well covered by operating cash flow (9.1%).

Interest Coverage: 532370's interest payments on its debt are well covered by EBIT (17.4x coverage).


Balance Sheet

Inventory Level: 532370 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 532370's debt is covered by short term assets (assets are 4.2x debt).


Next Steps

Dividend

What is Ramco Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.6%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 532370's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 532370's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 532370's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 532370's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 532370's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average board tenure


CEO

Virender Aggarwal (58yo)

7.8yrs

Tenure

0

Mr. Virender Aggarwal has been the Chief Executive Officer of Ramco Systems Ltd. since May 2012. Mr. Aggarwal served as Senior Vice President of Regional Business Unit-India, Middle of Satyam Computer Serv ...


Board Members

NamePositionTenureCompensationOwnership
Poosapadi Ramasubrahmaneya Venketrama Raja
Founder & Chairman 2.7yrs₹120.00k11.32% 536.9m
Poosapadi Venketrama Raja Ramasubramaniam Raja
Whole Time Director2.7yrs₹1.31m0.36% 17.1m
Muthiah Venkatachalam
Non-Executive Independent Director18.8yrs₹150.00kno data
Radhey Shyam Agarwal
Non-Executive Independent Director10.8yrs₹240.00kno data
Arrakundal Velayutha Dharmakrishnan
Non-Executive Director12.1yrs₹225.00k0.56% 26.5m
Soundara Kumar
Independent Director4.9yrs₹195.00kno data
Sankar Krishnan
Non-Executive Non-Independent Director1.8yrs₹165.00kno data
Perumal Subba Raja Janarthana Posapadi
Non-Executive Independent Director1.5yrs₹150.00kno data

3.8yrs

Average Tenure

61yo

Average Age

Experienced Board: 532370's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ramco Systems Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ramco Systems Limited
  • Ticker: 532370
  • Exchange: BSE
  • Founded: 1992
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: ₹4.743b
  • Shares outstanding: 30.60m
  • Website: https://www.ramco.com

Number of Employees


Location

  • Ramco Systems Limited
  • 64, Sardar Patel Road
  • Taramani
  • Chennai
  • Tamil Nadu
  • 600113
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532370BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2000
RAMCOSYSNSEI (National Stock Exchange of India)YesEquity SharesININRApr 2000

Biography

Ramco Systems Limited operates as an enterprise software company in India and internationally. The company offers Ramco Aviation Software, an enterprise-wide M&E/MRO software to address the needs of airlines, heli operators, MROs, and business aviation segments; Ramco VirtualWorks, a software meta model that captures data required to generate and deliver solutions in various technology platforms; and Ramco DecisionWorks for analytics/reporting. It also provides Ramco ERP on Cloud, a suite of products that covers enterprise functions, such as manufacturing; financial, supply chain, human capital, customer relationship, enterprise asset, and project management; process control; analytics; advanced planning and optimization; and connectors. In addition, the company offers Ramco Human Capital Management, a HR and talent management, and payroll software; and Ramco Logistics Software, a cloud based software that covers the needs of third-party logistics, freight forwarders, and parcel/courier service providers. Ramco Systems Limited was founded in 1992 and is headquartered in Chennai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 12:38
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.