Raminfo Limited

Technology — Software - Application · BSE

₹42.18−₹4.05 (−8.76%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:02 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Raminfo Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Raminfo Limited provides technology solutions to government, fintech, healthcare, energy, IoT, analytics, and engineering sectors in India.

IndustrySoftware - Application

SectorTechnology

Employees282

Annual revenue₹41 Cr

How does it make money?

Turns over ₹41 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹26 left at the operating level before interest, tax and depreciation. Each of its 282 employees supports ₹14.7 lakh of revenue a year, the signature of a people-led business.

EBITDA margin26.3%

Net margin4.5%

Revenue / employee₹14.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What is its competitive advantage?Little sign of one

Returns on capital of 4.4% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE4.4%

ROE2.6%

Peer median ROE32.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -49% while net margin moved -38% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-49%

Margin effect-38%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 20.1% a year
✗ Profit has declined at 31.7% a year

Quality vs. Valuation

Company Quality

35/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

67/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

17.6x

3Y Median

16.0x

40 monthly readings · mean 17.4x · range 7.0x–40.0x

Sector Median

16.5x

median of 4 sector peers

🟡Currently trading close to its 3y median of 16.0x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 16.5x.

vs. its own history

Fair

16.0x median over 40 months · +10%

vs. sector peers

Fair

16.5x median of 4 peers · +6%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

17.6x

P/B

0.56x

EV/EBITDA

3.0x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 14.9% to 26.3% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 18.3% to 2.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 27.1% to 4.4% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 609% against revenue growth of -49% — stock may not be moving.

Red Flags

6 items require attention · 4 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 5.97x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Inventory building faster than salesFinancial
Inventory up 609% against revenue up -49% — stock may not be moving.
🟡Profit is decliningFinancial
Net profit is down 68% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 22% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 14.9% to 26.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 5.97x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 18.3% to 2.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 24%✓ 26.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹19 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 4.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 7.2x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹35 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.6x

Fair

Fairly valued against the generic band

P/B Ratio

0.56x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.4

Profitable

Profitable on a per-share basis

ROE

2.6%

Weak

Weak capital efficiency

ROCE

4.4%

Weak

Low return on total capital employed

Debt/Equity

5.97x

High

High leverage

Revenue Growth (YoY)

125.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

314.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹19 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹42.18

Operating Margin

-1.5%

Weak

Thin margins leave little room for error

Net Margin

3.6%

Average

Average bottom-line conversion

Current Ratio

1.95

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.31

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

43.6 / 43.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

43.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹81 Cr	₹82 Cr	₹21 Cr	₹41 Cr	-20.1%
EBITDA	₹12 Cr	₹15 Cr	₹7 Cr	₹11 Cr	-3.4%
EBITDA Margin	14.9%	17.7%	32.2%	26.3%	—
PAT (Net Profit)	₹6 Cr	₹6 Cr	₹2 Cr	₹2 Cr	-31.7%
EPS	₹8.69	₹9.49	₹2.36	₹2.25	-36.3%
ROE	18.3%	10.4%	2.8%	2.6%	—
ROCE	27.1%	14.8%	4.2%	4.4%	—
Total Debt	₹4 Cr	₹11 Cr	₹8 Cr	₹4 Cr	+3.3%
Free Cash Flow	-₹6 Cr	-₹8 Cr	-₹12 Cr	-₹19 Cr	—

🔴 Revenue has shrunk at 20.1% a year over 3 years.

🔴 EBITDA has shrunk at 3.4% a year over 3 years.

🟢 EBITDA Margin has risen from 14.9% to 26.3% over 3 years (+11.4 pts).

🔴 PAT (Net Profit) has shrunk at 31.7% a year over 3 years.

🔴 EPS has shrunk at 36.3% a year over 3 years.

🔴 ROE has fallen from 18.3% to 2.6% over 3 years (-15.7 pts).

🔴 ROCE has fallen from 27.1% to 4.4% over 3 years (-22.7 pts).

🔴 Total Debt has grown at 3.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹123 Cr

Total Liabilities

₹51 Cr

Total Debt

₹4 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

-₹17 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

38.0%

Corporate Actions

Ex-Dividend Date

04 Aug 2023

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 mixed5 general

Raminfo shareholders approve all AGM resolutions with high majority

scanx.trade, 28 Sept

Ram Info Reschedules Board Meeting to Aug 14 for Q1FY26 Results

scanx.trade, 12 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

RAMINFO Stock Price and Chart — BSE:RAMINFO

TradingView, 25 Jul

RAMINFO LIMITED Share Price

Upstox, 06 Apr

Raminfo-led consortium bags ₹474-cr. rooftop solar projects order from RRECL

The Hindu, 17 Jun

Raminfo (BSE:530951) - Stock Analysis

Simply Wall Street, 02 Dec

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak8.8/20

🟡Financial HealthAdequate10.6/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak4.6/15

🟢ValuationAttractive10.6/15

🔴RiskHigh4/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 24%26.3%
✗Free cash flow remains positive-₹19 Cr
✓Debt / EBITDA stays below 2x0.4x
✗ROCE stays above 8%4.4%
✓Interest cover stays above 4x7.2x