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Ramco Systems Ltd

NSE: RAMCOSYS BSE: 532370

394.70

(-2.58%)

Mon, 30 Mar 2026, 09:36 am

Ramco Systems Analysis

dividend

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Pros

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    Cons

    • 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.

    future

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    Pros

    • Cash flow for Ramco Systems is expected to increase by more than 50% in 2 years time.
    • Ramco Systems's earnings are expected to grow significantly at over 20% yearly.
    • Ramco Systems's earnings growth is expected to exceed the India market average.
    • Ramco Systems's earnings growth is expected to exceed the low risk savings rate of 7.2%.
    • Ramco Systems's earnings are expected to exceed the low risk growth rate next year.
    • An improvement in Ramco Systems's performance (ROE) is expected over the next 3 years.
    • Ramco Systems's revenue growth is expected to exceed the India market average.
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    Cons

    • Ramco Systems is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
    • Performance (ROE) is not expected to exceed the current IN Software industry average.
    • Ramco Systems's revenue is expected to increase but not above the 50% threshold in 2 years time.
    • Ramco Systems's revenue is expected to grow by 9.5% yearly, however this is not considered high growth (20% yearly).

    health

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    Pros

    • Ramco Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • Ramco Systems is profitable, therefore cash runway is not a concern.
    • Ramco Systems is profitable, therefore cash runway is not a concern.
    • Debt is covered by short term assets, assets are 4.2x debt.
    • Ramco Systems's cash and other short term assets cover its long term commitments.
    • The level of debt compared to net worth has been reduced over the past 5 years (113% vs 15.5% today).
    • Interest payments on debt are well covered by earnings (EBIT is 17.4x coverage).
    • Ramco Systems's level of debt (15.5%) compared to net worth is satisfactory (less than 40%).
    • Low level of unsold assets.
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    Cons

    • Debt is not well covered by operating cash flow (9.1%, less than 20% of total debt).

    management

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    Pros

    • The tenure for the Ramco Systems board of directors is about average.
    • The tenure for the Ramco Systems management team is about average.
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    Cons

      misc

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      Pros

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        Cons

        • Ramco Systems is covered by less than 3 analysts.
        • Ramco Systems has significant price volatility in the past 3 months.

        past

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        Pros

        • Ramco Systems's 1-year earnings growth exceeds its 5-year average (108.3% vs -7.5%)
        • Ramco Systems has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
        • Ramco Systems's earnings growth has exceeded the IN Software industry average in the past year (108.3% vs -9.1%).
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        Cons

        • Ramco Systems's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
        • Ramco Systems used its assets less efficiently than the IN Software industry average last year based on Return on Assets.
        • Ramco Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

        value

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        Pros

        • Ramco Systems's share price is below the future cash flow value, and at a moderate discount (> 20%).
        • Ramco Systems is good value based on assets compared to the IN Software industry average.
        • BSE:532370 is up 100.9% outperforming the Software industry which returned 11.5% over the past month.
        • BSE:532370 is up 100.9% outperforming the market in India which returned 8% over the past month.
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        Cons

        • Ramco Systems's share price is below the future cash flow value, but not at a substantial discount (< 40%).
        • Ramco Systems is overvalued based on earnings compared to the IN Software industry average.
        • Ramco Systems is overvalued based on earnings compared to the India market.
        • 532370 underperformed the Software industry which returned -27.7% over the past year.
        • 532370 underperformed the Market in India which returned -14.5% over the past year.

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