Promoters Bought 6,38,383 Shares: This Smallcap Company’s Stock Rallied and Hit Upper Circuit After Securing Multi-Year Canadian Federal Contract for Its Aviation Software!
Promoters increased their stake in Q1 FY25 from 51.79 per cent to 53.59 per cent.
Incorporated in 1997, Ramco Systems Ltd is engaged in ERP software solutions and related services. As part of the Ramco Group, it provides multi-tenant cloud and mobile-based enterprise software, covering areas such as customized Global Payroll, ERP, Logistics, and M&E MRO for Aviation, SRP, and EAM services. The company, known for its expertise in the aviation sector, has recently expanded into the U.S. defence sector.
Ramco Systems has been selected by Transport Canada’s Aircraft Services Directorate (ASD) to provide its Aviation Software as the Aircraft Inventory & Maintenance Management System (AIMMS). This selection followed a detailed Request for Proposal (RFP) process. The contract involves implementing a cloud-based solution for aircraft inventory and maintenance management at ASD.
Ramco's software will offer an integrated solution for both rotary and fixed-wing fleets across Canadian bases, supporting various government departments. The system will replace existing solutions, featuring modules for Maintenance and Supply Chain Management, and ensure compliance with Canadian Aviation Regulations (CARs). Additionally, Ramco will assist ASD in enhancing process efficiencies and transitioning to a paperless operation through its Ramco Anywhere mobile apps.
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Currently, shares of Ramco Systems Ltd are at around Rs 392.10 per share, it rallied and hit the upper circuit. The company’s current market capitalization stands at Rs 1413.70 crore. Additionally, the shares have delivered a return of over 40 per cent in the past 1 year.
As per the Quarterly Results, in Q1 FY25, Ramco Systems Ltd recorded a revenue of Rs 137 crore representing a de-growth of 137 per cent YoY from Rs 140 crore. The operating profit for Q1 FY25 stood at Rs 3 crore along with an operating profit margin of 3 per cent. The net loss for Q1 FY25 stood at Rs 20 crore compared to a loss of Rs 47 crore last year same quarter. Looking at the annual performance, the company generated a revenue of Rs 526 crore in FY24. The operating loss for FY24 was Rs 153 crore with a net loss of Rs 242 crore compared to a net profit of Rs 207 crore in FY23.
Investors must keep this Small-Cap company on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.