Ramky Infrastructure Limited

Industrials — Engineering & Construction · NSE

₹269.00−₹1.25 (−0.46%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

Ramky Infrastructure Limited, together with its subsidiaries, provides integrated construction, infrastructure development, and management services primarily in India. The company operates through Construction Business and Developer Business segments.

IndustryEngineering & Construction

SectorIndustrials

Employees1,041

Annual revenue₹1,846 Cr

How does it make money?

Turns over ₹1,846 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹27 left at the operating level before interest, tax and depreciation. Each of its 1,041 employees supports ₹1.77 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.77 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 15.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE14.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +8% while net margin moved -78% 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+8%

Margin effect-78%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 2.7% — barely ahead of inflation
✗ Profit has declined at 38.1% a year
✗ Profit fell 47.2% in the latest year

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

88/ 100

Cheap

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

7.9x

3Y Median

12.5x

40 monthly readings · mean 11.2x · range 2.9x–23.3x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 37% below its 3y median of 12.5x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 74% below the peer median of 30.1x.

vs. its own history

Cheap

12.5x median over 40 months · -37%

vs. sector peers

Cheap

30.1x median of 3 peers · -74%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

4.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 64% over 3 years.
Very low debt
Debt/Equity of 0.27x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 80.8% to 12.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 83.2% to 15.4% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 2 high · 3 watch

🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 103% against revenue up 8% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹299 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 76% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.2 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 64% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 37% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 74% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Margins are being competed away
EBITDA margin has fallen from 28.9% to 26.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 103% against revenue up 8%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 2.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 80.8% to 12.5%. 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.

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

1EBITDA margin holds above 25%✓ 26.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹299 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✗ 2.7% CAGR
Latest reported year was 24.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 15.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹1,861 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.9x

Cheap

Cheap against the generic band

P/B Ratio

0.86x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹34.11

Profitable

Profitable on a per-share basis

ROE

12.5%

Moderate

Moderate capital efficiency

ROCE

15.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.27x

Low

Conservative leverage

Revenue Growth (YoY)

24.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-47.2%

Falling

Profits are shrinking

Dividend Yield

0.37%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹299 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

4.2%

Weak

Thin margins leave little room for error

Net Margin

12.2%

Good

Strong bottom-line conversion

Current Ratio

1.57

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.11

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

289.6 / 334.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

26.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,705 Cr	₹2,161 Cr	₹2,045 Cr	₹1,846 Cr	+2.7%
EBITDA	₹493 Cr	₹670 Cr	₹512 Cr	₹494 Cr	+0.1%
EBITDA Margin	28.9%	31.0%	25.0%	26.8%	—
PAT (Net Profit)	₹1,141 Cr	₹308 Cr	₹189 Cr	₹271 Cr	-38.1%
EPS	₹164.83	₹44.48	₹27.28	₹39.17	-38.1%
ROE	80.8%	18.0%	10.0%	12.5%	—
ROCE	83.2%	23.0%	16.3%	15.4%	—
Total Debt	₹1,650 Cr	₹834 Cr	₹570 Cr	₹591 Cr	-29.0%
Free Cash Flow	₹2,472 Cr	₹260 Cr	₹227 Cr	-₹299 Cr	—

🟢 Revenue has grown at 2.7% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (0.1% a year).

🔴 EBITDA Margin has fallen from 28.9% to 26.8% over 3 years (-2.2 pts).

🔴 PAT (Net Profit) has shrunk at 38.1% a year over 3 years.

🔴 EPS has shrunk at 38.1% a year over 3 years.

🔴 ROE has fallen from 80.8% to 12.5% over 3 years (-68.3 pts).

🔴 ROCE has fallen from 83.2% to 15.4% over 3 years (-67.8 pts).

🟢 Total Debt has shrunk at 29.0% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹2,472 Cr to -₹299 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,124 Cr

Total Liabilities

₹1,966 Cr

Cash & Equivalents

₹149 Cr

Operating Cash Flow

-₹262 Cr

Capex

-₹36 Cr

Shareholding (proxy)

Institutional Holding

0.3%

Insider Holding

73.8%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

18 Sept 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

1 positive1 mixed1 negative3 general

Ramky Infra Share Price

Upstox, 16 Oct

Ramky Infrastructure Share Price Hits Fresh 52-Week Low

Univest, 30 Sept

Ramky Infrastructure's (NSE:RAMKY) Solid Earnings May Rest On Weak Foundations

Simply Wall Street, 04 JunResults

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

Ramky Infrastructure shareholders approve ₹1 dividend, MD reappointment

scanx.trade, 26 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Ramky Infra Consolidated June 2026 Net Sales at Rs 471.23 crore, up 24.26% Y-o-Y

Moneycontrol.com, 24 Aug

Ramky Infra receives probe notice from Registrar of Companies

CNBC TV18, 07 MayRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation

MiddlingProfitability

WeakGrowth · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; Revenue growth stays above 4% a year · see Key things to watch ↑