Ramco Systems Limited (RAMCOSYS) AI Stock Analysis

• Market Cap: ₹22.44B
• Dividend Yield: N/A
• Average Volume (3M): 10.51K
• Price to Earnings (P/E): 253.6
• Beta (1Y): 1.34
• Revenue Growth: 20.41%
• EPS Growth: N/A
• Country: IN
• Employees: 1,767
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 3.40
• Shares Outstanding: 37,411,926
• 10 Day Avg. Volume: 10,296
• 30 Day Avg. Volume: 10,514
• PEG Ratio: 0.41
• Price to Book (P/B): 3.84
• Price to Sales (P/S): 2.05
• P/FCF Ratio: 37.23
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: ₹578.00 ▼(-1.42% Downside)

Ramco Systems Limited's overall stock score reflects a challenging financial performance with inconsistent profitability and high valuation concerns. Technical analysis indicates mixed signals, with potential short-term weakness. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Subscription-Based Revenue Model

A subscription-based model provides predictable and recurring revenue streams, enhancing financial stability and long-term growth potential.

Specialized Industry Solutions

Specialized solutions in niche markets allow for premium pricing and differentiation, supporting sustained competitive advantage and profitability.

Positive Operating Cash Flow

Strong operating cash flow indicates effective cash generation, providing liquidity and financial flexibility for future investments and growth.

Negative Factors

Inconsistent Revenue Growth

Inconsistent revenue growth can hinder long-term strategic planning and investment, posing challenges to achieving stable financial performance.

Negative Profit Margins

Negative profit margins indicate challenges in cost management and pricing strategy, potentially affecting long-term financial health and shareholder returns.

Leverage Concerns

High leverage can limit financial flexibility and increase risk, impacting the company's ability to invest in growth opportunities and weather economic downturns.

Ramco Systems Limited Business Overview & Revenue Model

Company Description

Ramco Systems Limited operates as an enterprise software company in the Americas, Europe, the Asia-Pacific, the Middle East, and Africa. The company offers Ramco Aviation Software, an enterprise-wide maintenance and engineering/maintenance repair and overhaul (MRO) software to address the needs of airlines, heli operators, defense, MROs, and eVTOL, and drones/UAS. It also provides Ramco ERP on Cloud, a suite of products that covers enterprise functions, such as manufacturing; financing, 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 Enterprise Asset Management software allows to maintain, acquire, and manage their assets; Ramco Human Capital Management, a HR and payroll software; and Ramco Logistics Software, a cloud-based software that covers the needs of third-party logistics, freight forwarders, parcel/courier service providers, and network service providers. Further, it provides computer programming, consultancy, hosting, and related services. Ramco Systems Limited was founded in 1992 and is headquartered in Chennai, India.

How the Company Makes Money

Ramco Systems generates revenue primarily through its subscription-based model for its cloud software solutions, which include ERP and HRMS products. Key revenue streams include licensing fees for software usage, implementation services, and ongoing maintenance and support services. Additionally, the company may have significant partnerships with industry leaders that enhance its service offerings and broaden its market reach, contributing to its recurring revenue. The focus on sectors like aviation and logistics further provides specialized solutions that can command premium pricing, thereby boosting profitability.

Ramco Systems Limited Financial Statement Overview

Summary

Ramco Systems Limited shows a mixed financial picture. Revenue growth and operating cash flow are positive, but consistent profitability is a challenge. The balance sheet is stable, but leverage and negative returns on equity are concerns. Improving profitability and cash flow consistency is crucial for financial health.

Income Statement

The income statement shows a volatile performance with significant swings in profitability. Revenue growth has been inconsistent, with a notable increase in the most recent year. Despite a positive gross profit margin, the company has faced challenges in maintaining net profitability due to fluctuating EBIT and EBITDA margins. The net profit margin remains negative, reflecting ongoing profitability issues.

Balance Sheet

The balance sheet indicates a moderate financial position with stable equity but some concerns over leverage. The debt-to-equity ratio is manageable, indicating a balanced approach to financing. However, the return on equity is negative due to net losses, which may impact future financial flexibility. The equity ratio suggests a solid asset base supported by shareholder equity.

Cash Flow

Cash flow analysis reveals a positive trend in operating cash flow, which is encouraging for liquidity. Free cash flow growth has been inconsistent, but recent improvements are noteworthy. The operating cash flow to net income ratio is strong, indicating effective cash generation despite net losses. However, free cash flow to net income remains a concern due to negative earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.16B	5.91B	5.26B	4.92B	5.31B	6.26B
Gross Profit	3.59B	1.50B	2.49B	1.91B	2.51B	3.58B
EBITDA	915.26M	646.03M	-1.51B	-1.31B	80.86M	1.87B
Net Income	-136.56M	-342.48M	-2.42B	-2.07B	-733.59M	557.77M
Balance Sheet
Total Assets	0.00	6.69B	6.68B	9.33B	8.75B	9.41B
Cash, Cash Equivalents and Short-Term Investments	710.84M	726.39M	176.94M	723.85M	876.71M	153.41M
Total Debt	0.00	541.51M	627.01M	1.06B	555.92M	628.22M
Total Liabilities	-3.19B	3.49B	3.53B	3.97B	2.91B	2.86B
Stockholders Equity	3.19B	3.16B	3.11B	5.33B	5.81B	6.52B
Cash Flow
Free Cash Flow	0.00	325.64M	149.98M	-772.61M	41.87M	963.49M
Operating Cash Flow	0.00	1.13B	1.04B	402.92M	918.41M	1.66B
Investing Cash Flow	0.00	-1.06B	-766.98M	-1.27B	-850.91M	-660.66M
Financing Cash Flow	0.00	134.13M	-559.96M	1.48B	-94.52M	-1.03B

Ramco Systems Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 586.30
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RAMCOSYS, the sentiment is Neutral. The current price of 586.3 is below the 20-day moving average (MA) of 600.53, below the 50-day MA of 602.60, and above the 200-day MA of 457.03, indicating a neutral trend. The MACD of 0.87 indicates Positive momentum. The RSI at 45.37 is Neutral, neither overbought nor oversold. The STOCH value of 14.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:RAMCOSYS.

Ramco Systems Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LTIM	78 Outperform	₹1.84T	37.72	―	1.08%	8.72%	4.54%
INTELLECT	73 Outperform	₹142.18B	35.25	―	0.69%	15.87%	39.55%
MPHASIS	73 Outperform	₹559.86B	31.27	―	1.94%	8.73%	11.33%
PERSISTENT	73 Outperform	₹1.02T	60.44	―	0.55%	23.27%	33.09%
ZENSARTECH	62 Neutral	₹168.23B	23.99	―	1.75%	9.16%	7.77%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RAMCOSYS	52 Neutral	₹22.44B	253.64	―	―	20.41%	―

Ramco Systems Limited Corporate Events

Ramco Systems Approves Executive Trading Plan Under SEBI Regulations

Ramco Systems Limited has announced the approval of a trading plan submitted by Mr. Rohit Mathur, Executive Vice President, in compliance with SEBI’s Prohibition of Insider Trading Regulations and the company’s Code of Conduct. This plan, approved on October 13, 2025, outlines the sale of equity shares within a specified trading period, reflecting the company’s adherence to regulatory frameworks and commitment to transparent trading practices.

Ramco Systems Approves CHRO’s Trading Plan in Compliance with SEBI Regulations

Ramco Systems Limited announced the approval of a trading plan submitted by its Chief Human Resource Officer, Rajiv Kumar, in compliance with SEBI’s insider trading regulations. The plan involves the sale of 6,000 shares over a five-day trading period, with specific price limits set. This move is part of Ramco’s adherence to regulatory requirements, ensuring transparency and compliance in its trading activities.