Ramco Systems
BSE:532370
532370
BSE
₹7B
Market Cap
Company description
Ramco Systems Limited operates as an enterprise software company in India and internationally. The last earnings update was 84 days ago. More info.
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532370 Share Price and Events
7 Day Returns
-4.1%
BSE:532370
2.6%
IN IT
0.8%
IN Market
1 Year Returns
-53.8%
BSE:532370
19.3%
IN IT
-0.7%
IN Market
532370 Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Ramco Systems (532370) | -4.1% | -8.5% | -8% | -53.8% | -70.8% | 37.1% |
| IN IT | 2.6% | 4.6% | 8.5% | 19.3% | 49.1% | 80.2% |
| IN Market | 0.8% | 2.8% | 5.9% | -0.7% | 41.2% | 72.5% |
1 Year Return vs Industry and Market
- 532370 underperformed the IT industry which returned 19.3% over the past year.
- 532370 underperformed the Market in India which returned -0.7% over the past year.
Value
Is Ramco Systems undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Ramco Systems
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data
Below are the data sources, inputs and calculation used to determine the intrinsic value for Ramco Systems.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 2 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 16.9% |
| Perpetual Growth Rate | 10-Year IN Government Bond Rate | 7.6% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year IN Govt Bond Rate | 7.6% |
| Equity Risk Premium | S&P Global | 8.6% |
| IT Unlevered Beta | Simply Wall St/ S&P Global | 1.05 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.054 (1 + (1- 35%) (9.86%)) |
1.082 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.08 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.082 * 8.6%) |
16.85% |
Discounted Cash Flow Calculation for BSE:532370 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Ramco Systems is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (INR, Millions) | Source |
Present Value Discounted (@ 16.85%) |
|
|---|---|---|---|
| 2019 | -2.00 | Analyst x1 | -1.71 |
| 2020 | 445.00 | Analyst x1 | 325.90 |
| 2021 | 794.00 | Analyst x1 | 497.63 |
| 2022 | 1,125.31 | Est @ 41.73% | 603.55 |
| 2023 | 1,479.48 | Est @ 31.47% | 679.07 |
| 2024 | 1,838.94 | Est @ 24.3% | 722.32 |
| 2025 | 2,193.34 | Est @ 19.27% | 737.28 |
| 2026 | 2,538.92 | Est @ 15.76% | 730.36 |
| 2027 | 2,876.44 | Est @ 13.29% | 708.11 |
| 2028 | 3,209.27 | Est @ 11.57% | 676.11 |
| Present value of next 10 years cash flows | ₹5,678.61 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= ₹3,209.27 × (1 + 7.55%) ÷ (16.85% – 7.55%) |
₹37,102.39 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= ₹37,102.39 ÷ (1 + 16.85%)10 |
₹7,816.45 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= ₹5,678.61 + ₹7,816.45 |
₹13,495.06 |
| Equity Value per Share (INR) |
= Total value / Shares Outstanding
= ₹13,495.06 / 30.59 |
₹441.12 |
| Calculation | Result | |
|---|---|---|
| Non-primary Listing Adjustment Factor |
1 share in BSE:532370
represents 0.99566x
of
NSEI:RAMCOSYS
(This could be a different class, a depositary receipt, a different currency, or all of these things.) |
0.99566x |
| Value per Share (Listing Adjusted, INR) |
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 441.12 x 0.99566 |
₹439.20 |
| Value per share (INR) | From above. | ₹439.20 |
| Current discount | Discount to share price of
₹229.10
= -1 x (₹229.10 - ₹439.20) / ₹439.20 |
47.8% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Amount off the current price
Ramco Systems
is available for.
48%
Share price is
₹229.1
vs Future cash flow value of
₹439.2
Current Discount Checks
For
Ramco Systems
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
- Ramco Systems's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Ramco Systems's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Ramco Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Ramco Systems's earnings available for a low price, and how does
this compare to other companies in the same industry?
Raw Data
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in INR | ₹3.89 |
| NSEI:RAMCOSYS Share Price ** | NSEI (2019-04-22) in INR | ₹230.1 |
| India IT Industry PE Ratio | Median Figure of 84 Publicly-Listed IT Companies | 16.19x |
| India Market PE Ratio | Median Figure of 2,738 Publicly-Listed Companies | 16.33x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Ramco Systems.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NSEI:RAMCOSYS Share Price ÷ EPS (both in INR) = 230.1 ÷ 3.89 |
59.13x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Ramco Systems is overvalued based on earnings compared to the IN IT industry average.
- Ramco Systems is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does
Ramco Systems's expected growth come at a high price?
Raw Data
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 59.13x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts |
89.1%per year |
| India IT Industry PEG Ratio | Median Figure of 21 Publicly-Listed IT Companies | 1.32x |
| India Market PEG Ratio | Median Figure of 585 Publicly-Listed Companies | 1.32x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 59.13x ÷ 89.1% |
0.66x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Ramco Systems is good value based on expected growth next year.
Price based on value of assets
What value do investors place on
Ramco Systems's
assets?
Raw Data
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in INR | ₹188.45 |
| NSEI:RAMCOSYS Share Price * | NSEI (2019-04-22) in INR | ₹230.1 |
| India IT Industry PB Ratio | Median Figure of 108 Publicly-Listed IT Companies | 1.36x |
| India Market PB Ratio | Median Figure of 3,628 Publicly-Listed Companies | 1.11x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NSEI:RAMCOSYS Share Price ÷ Book Value per Share (both in INR) = 230.1 ÷ 188.45 |
1.22x |
* Primary Listing of Ramco Systems.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Ramco Systems is good value based on assets compared to the IN IT industry average.
X
Value checks
We assess Ramco Systems's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the IT industry average (and greater than 0)? (1 check) Ramco Systems has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
89.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is
Ramco Systems
expected to grow at an
attractive
rate?
- Ramco Systems's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
- Ramco Systems's earnings growth is expected to exceed the India market average.
- Ramco Systems's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
| Data Point | Source | Value (per year) |
|---|---|---|
| BSE:532370 Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts | 89.1% |
| BSE:532370 Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts | 19.4% |
| India IT Industry Earnings Growth Rate | Market Cap Weighted Average | 9.5% |
| India IT Industry Revenue Growth Rate | Market Cap Weighted Average | 9.4% |
| India Market Earnings Growth Rate | Market Cap Weighted Average | 18.5% |
| India Market Revenue Growth Rate | Market Cap Weighted Average | 11.7% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
Raw Data
All numbers in INR Millions and using
Trailing twelve months (TTM)
annual period rather than quarterly.
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 2 Analyst Estimates (S&P Global) | See Below |
| Date (Data in INR Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-03-31 | 8,044 | 1,444 | 1,278 | 1 |
| 2020-03-31 | 6,381 | 1,065 | 846 | 2 |
| 2019-03-31 | 5,477 | 578 | 176 | 1 |
| Date (Data in INR Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 5,193 | 119 | |
| 2018-09-30 | 5,008 | 184 | |
| 2018-06-30 | 4,845 | 210 | |
| 2018-03-31 | 4,692 | 70 | 113 |
| 2017-12-31 | 4,649 | 149 | |
| 2017-09-30 | 4,526 | 144 | |
| 2017-06-30 | 4,499 | 68 | |
| 2017-03-31 | 4,492 | 367 | 107 |
| 2016-12-31 | 4,618 | 249 | |
| 2016-09-30 | 4,622 | 300 | |
| 2016-06-30 | 4,552 | 371 | |
| 2016-03-31 | 4,409 | 188 | 241 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Raw Data
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 2 Analyst Estimates (S&P Global) | See Below |
All data from Ramco Systems Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in INR Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-03-31 | 40.10 | 40.10 | 40.10 | 1.00 |
| 2020-03-31 | 26.50 | 26.50 | 26.50 | 1.00 |
| 2019-03-31 | 5.50 | 5.50 | 5.50 | 1.00 |
| Date (Data in INR Millions) | EPS * |
|---|---|
| 2018-12-31 | 3.89 |
| 2018-09-30 | 6.01 |
| 2018-06-30 | 6.90 |
| 2018-03-31 | 3.70 |
| 2017-12-31 | 4.90 |
| 2017-09-30 | 4.71 |
| 2017-06-30 | 2.24 |
| 2017-03-31 | 3.54 |
| 2016-12-31 | 8.30 |
| 2016-09-30 | 10.10 |
| 2016-06-30 | 12.43 |
| 2016-03-31 | 8.22 |
*GAAP earnings excluding extraordinary items.
X
Ramco Systems has a total score of 4/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Future performance checks
We assess Ramco Systems's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Ramco Systems has a total score of 4/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Ramco Systems performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Below we compare
Ramco Systems's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it
has maintained that growth in the year.
- Ramco Systems has delivered over 20% year on year earnings growth in the past 5 years.
- Ramco Systems's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Ramco Systems's 1-year earnings growth is negative, it can't be compared to the IN IT industry average.
Earnings and Revenue History
Ramco Systems's
revenue
and
profit
over the past 5 years is shown below, any years where they have experienced a
loss will show up in red.
Raw Data
All data from Ramco Systems Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in INR Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 5,192.67 | 118.88 | 542.46 | |
| 2018-09-30 | 5,008.39 | 184.16 | 542.46 | |
| 2018-06-30 | 4,845.15 | 210.42 | ||
| 2018-03-31 | 4,692.19 | 112.85 | 542.46 | |
| 2017-12-31 | 4,649.47 | 149.48 | 517.81 | |
| 2017-09-30 | 4,526.14 | 144.16 | 517.81 | |
| 2017-06-30 | 4,498.54 | 67.63 | ||
| 2017-03-31 | 4,491.77 | 106.65 | 517.81 | |
| 2016-12-31 | 4,618.35 | 248.78 | 493.27 | |
| 2016-09-30 | 4,621.61 | 299.60 | 493.27 | |
| 2016-06-30 | 4,551.88 | 371.18 | ||
| 2016-03-31 | 4,409.45 | 241.44 | 493.27 | |
| 2015-12-31 | 4,254.77 | 331.18 | 1,115.13 | |
| 2015-09-30 | 4,057.32 | 294.39 | 1,115.13 | |
| 2015-06-30 | 3,863.14 | 226.87 | 1,115.13 | |
| 2015-03-31 | 3,604.86 | 126.72 | 347.68 | |
| 2014-12-31 | 3,326.99 | 87.38 | 345.10 | |
| 2014-09-30 | 3,044.20 | -47.79 | 1,031.16 | |
| 2014-06-30 | 2,805.83 | -172.82 | 1,031.16 | |
| 2014-03-31 | 2,630.65 | -237.53 | 1,031.16 | |
| 2013-12-31 | 2,589.62 | -299.07 | 873.47 | |
| 2013-09-30 | 2,575.11 | -313.53 | 873.47 | |
| 2013-06-30 | 2,534.79 | -347.97 | 873.47 | |
| 2013-03-31 | 2,392.72 | -404.37 | 873.47 | |
| 2012-12-31 | 2,210.86 | -420.38 | 880.49 | |
| 2012-09-30 | 2,202.26 | -336.70 | 880.49 | |
| 2012-06-30 | 2,133.56 | -244.52 | 880.49 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Ramco Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Ramco Systems used its assets less efficiently than the IN IT industry average last year based on Return on Assets.
- Ramco Systems's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Ramco Systems has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Past performance checks
We assess Ramco Systems's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Ramco Systems has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Ramco Systems's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Ramco Systems's finances.
The net worth of a company is the difference between its assets and liabilities.
- Ramco Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Ramco Systems's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of
Ramco Systems's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 4.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data
All data from Ramco Systems Company Filings, last reported 3 months ago.
| Date (Data in INR Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 5,762.56 | 704.87 | 1,718.13 |
| 2018-09-30 | 5,762.56 | 704.87 | 1,718.13 |
| 2018-06-30 | 5,545.70 | 380.02 | 1,742.36 |
| 2018-03-31 | 5,545.70 | 380.02 | 140.06 |
| 2017-12-31 | 5,431.92 | 529.90 | 1,705.11 |
| 2017-09-30 | 5,431.92 | 529.90 | 1,705.11 |
| 2017-06-30 | 5,407.38 | 50.00 | 1,461.02 |
| 2017-03-31 | 5,407.38 | 50.00 | 81.01 |
| 2016-12-31 | 5,245.55 | 314.22 | 1,405.37 |
| 2016-09-30 | 5,245.55 | 314.22 | 1,405.37 |
| 2016-06-30 | 6,224.30 | 0.00 | 73.62 |
| 2016-03-31 | 5,151.86 | 0.00 | 70.15 |
| 2015-12-31 | 5,920.53 | 0.00 | 160.62 |
| 2015-09-30 | 5,920.53 | 0.00 | 160.62 |
| 2015-06-30 | 2,530.80 | 2,975.66 | 108.59 |
| 2015-03-31 | 2,530.80 | 2,975.66 | 108.59 |
| 2014-12-31 | 2,459.30 | 2,795.36 | 160.78 |
| 2014-09-30 | 2,342.32 | 2,759.45 | 184.41 |
| 2014-06-30 | 1,077.83 | 3,659.90 | 116.40 |
| 2014-03-31 | 1,077.83 | 3,659.90 | 116.40 |
| 2013-12-31 | 1,064.93 | 3,467.17 | 193.77 |
| 2013-09-30 | 1,114.37 | 3,252.61 | 141.61 |
| 2013-06-30 | 1,285.53 | 2,870.23 | 132.88 |
| 2013-03-31 | 1,285.53 | 2,870.23 | 132.88 |
| 2012-12-31 | 1,388.54 | 2,505.26 | 128.32 |
| 2012-09-30 | 1,388.54 | 2,505.26 | 128.32 |
| 2012-06-30 | 1,656.01 | 1,995.86 | 114.04 |
- Ramco Systems's level of debt (12.2%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (325.7% vs 12.2% today).
- Debt is not well covered by operating cash flow (9.9%, less than 20% of total debt).
- Ramco Systems earns more interest than it pays, coverage of interest payments is not a concern.
X
Full details on the Health part of the Simply Wall St company analysis model.
Financial health checks
We assess Ramco Systems's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Ramco Systems has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Ramco Systems's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
0%
Current annual income from
Ramco Systems
dividends.
If you bought
₹2,000 of
Ramco Systems
shares you are expected to receive
₹0
in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you
can get in a
savings account?
It is up there with the
best dividend paying companies?
- Unable to evaluate Ramco Systems's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Ramco Systems's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
Raw Data
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 2 Analyst Estimates (S&P Global) | See Below |
| India IT Industry Average Dividend Yield | Market Cap Weighted Average of 40 Stocks | 1.6% |
| India Market Average Dividend Yield | Market Cap Weighted Average of 1400 Stocks | 1.4% |
| India Minimum Threshold Dividend Yield | 10th Percentile | 0.3% |
| India Bottom 25% Dividend Yield | 25th Percentile | 0.5% |
| India Top 25% Dividend Yield | 75th Percentile | 1.9% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in ₹) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-03-31 | ||
| 2020-03-31 | ||
| 2019-03-31 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as Ramco Systems has not reported any payouts.
- Unable to verify if Ramco Systems's dividend has been increasing as the company has not reported any payouts.
X
Full details on the Dividends part of the Simply Wall St company analysis model.
Income/ dividend checks
We assess Ramco Systems's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Ramco Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Ramco Systems has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
CEO
Virender
Aggarwal
| AGE | 57 |
| TENURE AS CEO | 6.9 years |
CEO Bio
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 Services Ltd. since April 2004. He served as the President of Emerging Markets at HCL Technologies Ltd. He also served as Senior Vice President of APAC-MEIA territories (Asia Pacific and Africa) at Satyam Computer Services Ltd. since April, 2004. He was responsible for management of business and delivery operations, which include the development centers across China, Australia, Malaysia, Singapore, Middle East and Japan. Prior to joining Satyam, he served as the Head of a large Indian Software and Training Company operating out of Singapore. He has more than 18 years experience, including eight years in general management positions. His other assignments included working for management consultancy firm - AF Ferguson and Co in India and various positions of responsibility in other organizations in the field of IT consulting. He has been a recipient of numerous prestigious industry awards, including the International Management Action Award for 2004 (IMAA), which was conferred on him by SPRING. He was the first Indian National to receive the award in Singapore. He was also instrumental in the acquisition of Knowledge Dynamics, a high-end local Singaporean Business Intelligence competency-focused organization. He has been a Director of Satyam Computer Services Ltd. and APAC-MEIA territories since April 2004. He serves as a Director of Knowledge Dynamics Pte. Ltd. He served as Director of Satyam Computer Services (Shanghai) Co Limited. Mr. Aggarwal has completed his Masters in Management at BITS, Pilani.
CEO Compensation
- Insufficient data for Virender to compare compensation growth.
- Insufficient data for Virender to establish whether their remuneration is reasonable compared to companies of similar size in India.
Management Team Tenure
Average tenure and age of the Ramco Systems management team in years:
1.8
Average Tenure
57
Average Age
- The average tenure for the Ramco Systems management team is less than 2 years, this suggests a new team.
Management Team
Pusapadi Ramasubrahmaneya Raja
TITLE
Founder & Chairman
COMPENSATION
₹1M
AGE
59
R. Ravi Chandran
TITLE
Chief Financial Officer
COMPENSATION
₹9M
AGE
57
P. Karthic
TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹570K
TENURE
1.8 yrs
P. V. Abinav Raja
TITLE
Whole Time Director
COMPENSATION
₹1M
AGE
24
Virender Aggarwal
TITLE
Chief Executive Officer
AGE
57
TENURE
6.9 yrs
M. Padmanabhan
TITLE
Director of Technology
COMPENSATION
₹12M
AGE
59
G. Vardhan
TITLE
Chief Marketing & Ecosystem Officer
R. Rajiv
TITLE
Chief Human Resources Officer
TENURE
1.3 yrs
Shyamala Jayaraman
TITLE
Senior Vice President of ERP
COMPENSATION
₹10M
AGE
49
K. Sunder
TITLE
Chief Knowledge Officer
Board of Directors Tenure
Average tenure and age of the Ramco Systems board of directors in years:
3
Average Tenure
60
Average Age
- The average tenure for the Ramco Systems board of directors is less than 3 years, this suggests a new board.
Board of Directors
P. V. Abinav Raja
TITLE
Whole Time Director
COMPENSATION
₹1M
AGE
24
TENURE
1.8 yrs
Muthiah Venkatachalam
TITLE
Non-Executive Independent Director
COMPENSATION
₹135K
AGE
60
TENURE
18 yrs
Pusapadi Ramasubrahmaneya Raja
TITLE
Founder & Chairman
COMPENSATION
₹1M
AGE
59
TENURE
1.8 yrs
Soundara Kumar
TITLE
Independent Director
COMPENSATION
₹135K
AGE
64
TENURE
4.1 yrs
A. Dharmakrishnan
TITLE
Non-Executive Director
COMPENSATION
₹150K
AGE
61
TENURE
11.3 yrs
Radhey Shyam Agarwal
TITLE
Non-Executive Independent Director
COMPENSATION
₹90K
AGE
76
TENURE
9.9 yrs
Sankar Krishnan
TITLE
Non-Executive Independent Director
AGE
50
TENURE
0.9 yrs
P. P. S. Raja
TITLE
Non-Executive Independent Director
TENURE
0.7 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (₹) | Value (₹) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 21. Feb 19 | Buy | Ramco Industrial And Technology Services limited | Company | 19. Feb 19 | 19. Feb 19 | 16,600 | ₹219.22 | ₹3,639,051 | ||
| 14. Feb 19 | Buy | Ramco Industrial And Technology Services limited | Company | 12. Feb 19 | 12. Feb 19 | 12,100 | ₹214.26 | ₹2,592,540 | ||
| 08. Oct 18 | Sell | V Balasubramaniam | Individual | 14. Sep 18 | 14. Sep 18 | -800 | ₹348.29 | ₹-278,630 | ||
| 20. Aug 18 | Sell | Sharadha Deepa | Individual | 17. Aug 18 | 17. Aug 18 | -4,077 | ₹383.49 | ₹-1,563,481 | ||
| 17. Aug 18 | Sell | Sharadha Deepa | Individual | 06. Aug 18 | 16. Aug 18 | -8,259 | ₹388.46 | ₹-3,208,252 | ||
| 24. Apr 18 | Sell | Subbaraman Ramaswamy | Individual | 19. Apr 18 | 23. Apr 18 | -10,776 | ₹486.62 | ₹-5,243,813 | ||
X
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
Management checks
We assess Ramco Systems's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Ramco Systems has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
Company Info
Description
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; and Ramco VirtualWorks, a software meta model that captures various data required to generate and deliver solutions in various technology platforms, as well as 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 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 incorporated in 1997 and is headquartered in Chennai, India.
Details
| Name: | Ramco Systems Limited |
| 532370 | |
| Exchange: | BSE |
| Founded: | 1997 |
| ₹7,151,072,142 | |
| 30,592,822 | |
| Website: | http://www.ramco.com |
| Address: |
Ramco Systems Limited 64, Sardar Patel Road, Taramani, Chennai, Tamil Nadu, 600113, India |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NSEI | RAMCOSYS | Equity Shares | National Stock Exchange of India | IN | INR | 12. Apr 2000 | |
| BSE | 532370 | Equity Shares | Mumbai Stock Exchange | IN | INR | 12. Apr 2000 |
Number of employees
Current staff
1,700
Ramco Systems
employees.
Industry
| IT Consulting and Other Services | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/22 12:36 |
| End of day share price update: | 2019/04/22 00:00 |
| Last estimates confirmation: | 2019/01/29 |
| Last earnings filing: | 2019/01/28 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/03/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
