Ramco Systems
Market Cap
₹4.7b
Last Updated
2020/02/24 12:38 UTC
Data Sources
Company Financials +
Executive Summary
Ramco Systems Limited operates as an enterprise software company in India and internationally.
Rewards
Risk Analysis
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
| 532370 | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.7% | -1.7% | -0.07% |
| 30 Day | -26.0% | -5.1% | -1.3% |
| 90 Day | 9.2% | 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
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
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Chairman | 2.7yrs | ₹120.00k | 11.32% ₹536.9m | |
| Whole Time Director | 2.7yrs | ₹1.31m | 0.36% ₹17.1m | |
| Non-Executive Independent Director | 18.8yrs | ₹150.00k | no data | |
| Non-Executive Independent Director | 10.8yrs | ₹240.00k | no data | |
| Non-Executive Director | 12.1yrs | ₹225.00k | 0.56% ₹26.5m | |
| Independent Director | 4.9yrs | ₹195.00k | no data | |
| Non-Executive Non-Independent Director | 1.8yrs | ₹165.00k | no data | |
| Non-Executive Independent Director | 1.5yrs | ₹150.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 532370 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Apr 2000 |
| RAMCOSYS | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Apr 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/24 12:38 |
| End of Day Share Price | 2020/02/24 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.