Ramco Systems Ltd. share price target

$22mn (DE at $20mn) as the strong bookings in Licence-based deals in ERP segment (up 18% QoQ) boosted revenue recognition in Q2. Company won new orders worth US$26.5mn in Q2FY21 up 24% on QoQ basis, coming back to its pre-Covid run rate. Unexecuted order book stood at US$164mn (2x revenue), providing good revenue visibility. Qualified pipeline stands at $211mn while ARR at $28mn (37% of rev). EBIDTA margins declined 355bps QoQ on account on increased subcontracting in Q2 as well as unfavorable Fx swing of almost 1mn$. Adjusted for Fx EBIDTA margins improved by 170bps QoQ at 28.6%....

Deal wins momentum intact remotely; tight cost initiatives revives OPM RMCS reported strong results with Revenue growth of 4.5% QoQ at $19.4mn as against our estimate of $16.5mn as deal signings normalizes in Q1 alongwith continued improvement on faster Go-lives. Company won new orders worth US$21.3mn in Q1FY21, taking the unexecuted order book to US$164mn (2x revenue). Order intake improved materially after a brief freeze in March'20 (signed $13mn in Q4); although sales continues to remain largely digital-led only....

RSL is an established player in ERP segment, with a track record of nearly three decades, and catering to a reputed clientele comprising industry majors such as the Danube Group, Emirates, Seagate, Air India and Schneider Electric, amongst others. It offers customised Human Capital Management (HCM) and ERP solutions for various industries and has developed considerable expertise in catering to the aviation and logistics sector. The overall growth prospects for both the domestic and global cloud-based ERP segment remain favourable, on the back of increasing...