Ramco Systems Limited (RAMCOSYS) AI Stock Analysis

• Market Cap: ₹18.19B
• Dividend Yield: N/A
• Average Volume (3M): 10.51K
• Price to Earnings (P/E): 84.6
• Beta (1Y): 1.62
• Revenue Growth: 20.41%
• EPS Growth: N/A
• Country: IN
• Employees: 1,767
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.90
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: ₹471.00 ▼(-17.79% 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

Recurring revenue model

Ramco's mix of subscriptions, licensing, implementation and maintenance creates recurring revenue and multiple upsell paths. This durable business model enhances revenue predictability, customer stickiness and supports long-term investment in product and services capabilities.

Operating cash flow strength

Consistent positive operating cash flow despite net losses shows the core business generates cash. Sustained cash generation reduces reliance on external funding, funds ongoing product development and service delivery, and provides a buffer to navigate cyclical or execution challenges.

Top-line growth

Reported ~18% revenue growth indicates persistent demand for Ramco's HCM, ERP and aviation offerings. Continued top-line expansion supports scale, increases opportunities for cross-sell within enterprise accounts, and provides a foundation for margin recovery if costs are managed.

Negative Factors

Negative profitability

Persistent negative net margins mean revenues are not converting into sustainable profits. This erodes retained earnings, limits reinvestment capacity, pressures return metrics, and may force strategic trade-offs in pricing, investment or cost structure if improvement doesn't materialize.

Leverage and negative ROE

A balance of leverage with negative ROE implies debt amplifies weak earnings, constraining financial flexibility. This combination raises refinancing risk, limits ability to fund acquisitions or R&D, and weakens shareholders' long-term returns until profitability recovers.

Inconsistent free cash flow

Volatile free cash flow—despite positive operating cash flow—signals capex or working capital swings that can disrupt funding for growth or debt reduction. Inconsistent FCF increases uncertainty around self-funding strategic initiatives and raises potential need for external financing.

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 with inconsistent revenue growth and ongoing profitability challenges. The balance sheet is stable but affected by leverage and negative returns on equity. Positive operating cash flow trends are encouraging, but overall profitability needs improvement.

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: Positive
• Last Price: 572.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RAMCOSYS, the sentiment is Positive. The current price of 572.95 is above the 20-day moving average (MA) of 469.81, above the 50-day MA of 543.76, and above the 200-day MA of 478.99, indicating a neutral trend. The MACD of -24.66 indicates Negative momentum. The RSI at 52.72 is Neutral, neither overbought nor oversold. The STOCH value of 83.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:RAMCOSYS.

Ramco Systems Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPHASIS	73 Outperform	₹525.82B	29.17	―	1.94%	8.73%	11.33%
PERSISTENT	69 Neutral	₹959.18B	54.64	―	0.55%	23.27%	33.09%
LTIM	66 Neutral	₹1.78T	37.34	―	1.08%	8.72%	4.54%
INTELLECT	62 Neutral	₹115.07B	31.85	―	0.69%	15.87%	39.55%
ZENSARTECH	62 Neutral	₹152.90B	20.62	―	1.75%	9.16%	7.77%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RAMCOSYS	52 Neutral	₹18.19B	84.63	―	―	20.41%	―

Ramco Systems Limited Corporate Events

Ramco Systems Opens Special Window for Share Transfer Requests

Ramco Systems Limited announced the opening of a special window for the re-lodgement of transfer requests for physical shares, following a SEBI circular. The company has published notices in multiple newspapers and social media platforms to inform eligible shareholders about the process, which requires them to submit necessary documents for share transfer. The announcement is part of compliance with regulatory requirements and aims to facilitate the transfer process for shareholders, although no requests were received or processed in November 2025.