Shares of Ramco Systems hit an over four-year high of Rs 724, having surged 9 per cent on the BSE in the intra-day trade on Tuesday, in an otherwise subdued market. The stock of information technology (IT) consulting & software company was trading at its highest level since June 2016.
In the past 10 trading days, the stock has surged 35 per cent after the company announced that it has signed a multi-million-dollar agreement with a Global Fortune 500 major to unify and transform its Payroll for 18 countries in Asia Pacific region on Ramco's Managed Payroll Services. With this win, the company has added three Fortune 500 brands as clients for Ramco Global Payroll, in Q3 2020, it said.
In the past one month, the market price of Ramco Systems has outperformed the market by surging 49 per cent, as against a 7-per cent rise in the S&P BSE Sensex.
Earlier, in a separate regulatory filing, on December 21, global aviation software specialist Ramco Systems announced that it will implement its flagship aviation software, Ramco Aviation M&E MRO Suite for Iberia Maintenance (Iberia MRO), one of Europe’s leading MRO service providers in IAG Group.
Meanwhile, for July-September quarter, Ramco Systems had reported strong results with Revenue growth of 11 per cent QoQ at $22.27 million as the strong bookings in Licence-based deals in ERP segment (up 18 per cent QoQ) boosted revenue recognition in Q2. The company won new orders worth US$26.53 million in Q2FY21 up 24 per cent on QoQ basis, coming back to its pre-Covid run rate.
"Factoring in confident commentary across business segment, signing of marque partnership with Oracle/Workday, improved profitability and cash generation profile reinforces our positive stance on the business," said analysts at Dolat Capital in result update.
The board of directors of Ramco Systems is scheduled to meet on February 03, 2021, to consider and approve financial results for the quarter ended December 31, 2020 (Q3FY21).