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Ramco Systems Limited (RAMCOSYS) Fair Value & Analysis

Technology · IN · Market cap ₹29.9B

RS Ramco Systems Limited RAMCOSYS · NSE
Price₹669.75
Fair Value₹222.65
Upside-66.8%
Quality67/100
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Healthy Growth
Thin margins · 6.0% net margin
Low debt · generates free cash flow
Ranks above peers (8/13)
Narrow moat 44/100
Evidence: High Range ₹166.99 – ₹282.76 Share as image

Fair value as of: Aug 8, 2026

From 24 valuation models · updated 3 days ago

Share price −16.9% over the past month.

A solid business, but screening 67% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹282.76). The favourable scenario is already priced in.
  • Solid but not exceptional quality (67/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

₹886.15 ₹191.05 Fair Value ₹222.65 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 8, 2026.

How to read this chart

60‑month range ₹191.05 – ₹886.15 · fair‑value band ₹166.99 – ₹282.76 · the ₹669.75 price screens above the ₹222.65 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 8, 2026.

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Analysis

Ramco Systems Limited (RAMCOSYS) currently trades at ₹669.75, while our model-based Fair Value estimate is ₹222.65, implying the stock looks roughly 66.8% overvalued today. The Quality Score stands at 67/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Ramco Systems Limited generated revenue of ₹7.0B at a net margin of 6.0%. Revenue grew 19.4% year over year. It earns a return on equity of 12.5%. The balance sheet holds a net cash position of ₹827M. Fundamentals as of Aug 8, 2026

Our scenario range runs from ₹166.99 (bear case) to ₹282.76 (bull case); at ₹669.75, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 23% below its 52-week high and 96% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -27% fair-value upside, at -67%, RAMCOSYS screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ₹223.32 ₹319.40 ₹458.74 80
Rev-Margin DCF ₹186.06 ₹273.63 ₹376.18 74
ROIC Compounder ₹173.06 ₹210.54 ₹254.20 72
All 24 models by family
DCF Models
FCF DCF ₹220.65 ₹330.38 ₹500.61 38
Owner Earnings ₹206.13 ₹307.35 ₹464.38 31
5Y Revenue Exit ₹186.06 ₹273.00 ₹383.66 39
5Y EBITDA Exit ₹324.84 ₹535.79 ₹785.40 41
5Y P/E Exit ₹195.76 ₹291.36 ₹392.00 38
10Y Revenue Exit ₹192.39 ₹275.27 ₹386.63 36
10Y EBITDA Exit ₹285.63 ₹458.94 ₹696.78 37
10Y P/E Exit ₹202.94 ₹288.10 ₹393.06 35
Earnings-Based
Graham-Dodd ₹75.70 ₹249.70 ₹333.96 54
Lynch FV ₹56.26 ₹80.38 ₹104.49 50
PEG = 1.0 ₹56.26 ₹80.38 ₹104.49 46
EPV ₹162.89 ₹184.47 ₹203.36 59
Multiples
P/E Multiple ₹166.99 ₹222.65 ₹278.31 63
P/S Multiple ₹141.94 ₹189.25 ₹236.56 58
P/B Multiple ₹141.94 ₹189.25 ₹236.56 55
EV/EBIT ₹241.69 ₹311.12 ₹380.55 53
EV/EBITDA ₹420.83 ₹549.97 ₹679.11 54
EV/Revenue ₹173.81 ₹233.98 ₹294.15 43
Asset-Based
NCAV (Graham) ₹46.56 ₹62.39 ₹93.12 50
Growth DCF
Growth DCF ₹223.32 ₹319.40 ₹458.74 80
Rev-Margin DCF ₹186.06 ₹273.63 ₹376.18 74
Economic Profit
Residual Income ₹86.16 ₹101.87 ₹202.99 61
ROIC Compounder ₹173.06 ₹210.54 ₹254.20 72
Growth Earnings
Growth-Adj P/E ₹141.73 ₹202.47 ₹263.21 68

Widest divergence: DCF Models (₹291.36) versus Asset-Based (₹62.39). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹7.0B
Revenue growth (YoY) +19.4%
Net margin 6.0%
Return on equity 12.5%
Free cash flow ₹610M FY2026
P/E ratio 71.6
More key figures
Operating margin 11.9%
EPS (TTM) ₹11.13
EPS growth (YoY) +362%
Net cash ₹827M FY2026

Figures from reported company fundamentals · as of Aug 8, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 66 · Market factors (momentum, volatility) 76

Profitability 53
Margins and returns on capital today
Quality Growth 91
Are margins and returns improving?
Cashflow 58
Earnings quality: real cash, not paper profit
Fin. Strength 80
Balance sheet, leverage, solvency risk
Investment 83
Disciplined investing over empire-building
Low Volatility 44
Calm price path (market factor)
Momentum 95
Price trend over the last 3–12 months (market factor)
52W Momentum 81
Distance to the 52-week high (market factor)
Net Issuance 38
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Ramco Systems Limited operates as an enterprise software company in the United States, Europe, the Asia-Pacific, India, and the Middle East, and Africa. It offers Aviation, Aerospace & Defense that includes maintenance, repair, and overhaul; engine MRO; maintenance & engineering; defense asset management; flight operations; and feet technical management.

Full company description

Ramco Systems Limited operates as an enterprise software company in the United States, Europe, the Asia-Pacific, India, and the Middle East, and Africa. It offers Aviation, Aerospace & Defense that includes maintenance, repair, and overhaul; engine MRO; maintenance & engineering; defense asset management; flight operations; and feet technical management. It also provides ERP, including enterprise asset management, production, finance, and supply chain, project and facility management. In addition, the company offers payroll, comprising daily HR, payroll workspace, managed services, BInGO, and Chia AI assistant. Further, it provides logistics software, such as transport management, warehouse management, fleet management, finance and accounting, hub management and rating and billing. Additionally, the company offers computer programming, consultancy, hosting, and related services. Ramco Systems Limited was incorporated in 1997 and is headquartered in Chennai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Ramco Systems Limited reported revenue of ₹7.0B in FY2026 versus ₹5.3B in FY2022, a compound +7.2%/yr. Reported net income was ₹418M in FY2026.

Growth Quality 67/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹7.0B
Latest YoY
+18.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.5%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.3%
Avg. growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.7%
Revenue +7.2%/yr
FY22 ₹5.3B
FY23 ₹4.9B
FY24 ₹5.3B
FY25 ₹5.9B
FY26 ₹7.0B
Net income
FY22 −₹734M
FY23 −₹2.1B
FY24 −₹2.4B
FY25 −₹342M
FY26 ₹418M

RAMCOSYS screens 67% overvalued. Compare with SAP SE →

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Cite: Fair Value Calculator (2026). "Ramco Systems Limited Fair Value". https://www.fairvalue-calculator.com/stock/RAMCOSYS

Peer Group

Software - Application · 710 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 67 · Top 25%
Fair Value upside −67% · Below median
Return on equity (TTM) 12% · Above median
Return on assets 5% · Above median
Net margin (TTM) 6% · Above median
Operating margin (TTM) 12% · Above median
Revenue growth 19% · Above median

Valuation Multiples vs Software - Application median · lower = cheaper

P/E (TTM) 71.6× · Pricier than 75% of peers
P/B 8.55× · Pricier than 75% of peers
P/S (TTM) 4.27× · Pricier than 75% of peers
P/FCF 0.5× · Cheaper than 75% of peers
EV/EBITDA 21.4× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 97 · sector 38
PAST 50 · sector 13
HEALTH 100 · sector 98
DIVIDEND 0 · sector 28

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Software - Application stocks, each showing price versus our Fair Value estimate (as of Aug 8, 2026).

Stock Price Fair Value vs Fair Value
SAP SE SAPS C$12.69 C$16.26 +28%
Shopify Inc SHOP C$173.23 C$20.54 -88%
Uber Technologies, Inc UBER $72.67 $51.11 -30%
Salesforce, Inc CRM $170.77 $182.10 +7%
ServiceNow, Inc NOW $107.71 $33.12 -69%
Cadence Design Systems, Inc CDNS $384.17 $80.41 -79%
Snowflake Inc SNOW $271.87 $34.04 -87%
Adobe Inc ADBE $230.61 $379.48 +65%
Automatic Data Processing, Inc ADP $241.92 $177.51 -27%
Intuit Inc INTU $291.09 $258.69 -11%

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Frequently asked questions

Is Ramco Systems Limited (RAMCOSYS) overvalued or undervalued?
As of Aug 8, 2026, our model estimates a fair value of ₹222.65 versus a price of ₹669.75, about −67% (overvalued).
What is the fair value of RAMCOSYS?
Our model-based fair value for Ramco Systems Limited is ₹222.65 (as of Aug 8, 2026), built from audited fundamentals. The current price is ₹669.75.
What is the quality score of RAMCOSYS?
Ramco Systems Limited has a Quality Score of 67/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Ramco Systems Limited (RAMCOSYS)?
Ramco Systems Limited reported trailing-twelve-month revenue of about ₹7.0B (latest available figure, as of Aug 8, 2026).
What is the net profit margin of RAMCOSYS?
The net profit margin of Ramco Systems Limited is about 6.0%, meaning it keeps roughly 6.0% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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