Ramco SystemsNSE:RAMCOSYS +20.00%63 Interest Coverage is 22.66 as of Mar. 2026, which is 97% above its 10-year median of 11.53. GuruFocus rates NSE:RAMCOSYS with a GF Score™ of 63/100 and a GF Value™ of ₹457.94 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,705 Software companies, Ramco Systems ranks better than 57.48% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Ramco Systems's
Operating Income
for the
three
months ended in Mar. 2026 was ₹207 Mil. Ramco Systems's Interest Expense for the
three
months ended in Mar. 2026 was ₹-9 Mil.
Ramco Systems's interest coverage for the quarter that ended in Mar. 2026 was 22.66.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Ramco Systems's Interest Coverage or its related term are showing as below:
NSE:RAMCOSYS'
s Interest Coverage Range Over the Past 10 Years
Min: 2.57 Med: 11.53 Max: 44
Current: 44
NSE:RAMCOSYS's Interest Coverage is ranked better than 57.48% of 1705
companies
in the Software industry
Industry Median: 24.67
vs NSE:RAMCOSYS: 44.00
Ramco Systems (NSE:RAMCOSYS) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Ramco Systems Interest Coverage Related Terms
Ramco Systems Interest Coverage Historical Data
* Premium members only.
The historical data trend for Ramco Systems's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
NSE:RAMCOSYS vs CRM, SHOP, UBER: Interest Coverage Comparison
For the Software - Application subindustry, Ramco Systems's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ramco Systems Interest Coverage vs Software Industry
For the Software industry and Technology sector, Ramco Systems's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Ramco Systems's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ramco Systems (NSE:RAMCOSYS) has a Interest Coverage of 22.66 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ramco Systems and its competitors. This is 97% above median its historical median of 11.53. Over the past decade, Ramco Systems' Interest Coverage has ranged from 2.57 to 44.00. According to the industry distribution chart, Ramco Systems ranks #725 out of 1705 companies in the Software industry, placing it in the top 42.5%.
Is Ramco Systems' Interest Coverage too high?
Ramco Systems' current Interest Coverage of 22.66 is 97% above median its 10-year median of 11.53. Over the past 10 years, this metric has ranged from a low of 2.57 to a high of 44.00. The Software industry median Interest Coverage is 24.67. Ramco Systems' value of 22.66 is 8.1% below this industry median. Based on the distribution chart, Ramco Systems ranks #725 out of 1705 companies in the Software industry, which is above the industry midpoint. Overall, Ramco Systems has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ramco Systems' Interest Coverage compare to CRM and SHOP?
According to the Software industry distribution chart, Ramco Systems ranks #725 out of 1705 companies for Interest Coverage. This puts Ramco Systems in the upper half of its industry. The industry median Interest Coverage is 24.67. Ramco Systems' value of 22.66 is 8.1% below this benchmark. Historically, Ramco Systems' own Interest Coverage has ranged from 2.57 to 44.00 over the past decade. While the company's 10-year median is 11.53 vs. the industry median of 24.67, Ramco Systems has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 24.67, based on 1,705 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ramco Systems's current Interest Coverage of 22.66 is 8.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ramco Systems and its competitors. For the Software industry, the median Interest Coverage is 24.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ramco Systems's current Interest Coverage is 22.66, which is 97% above median its own 10-year median of 11.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ramco Systems stock overvalued right now?
Based on GuruFocus' analysis, Ramco Systems (NSE:RAMCOSYS) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹457.94, compared to a current price of ₹673.80 — trading 47.1% above its estimated fair value. The current Interest Coverage is 22.66, which is 97% above median its 10-year median of 11.53 and 8.1% below the Software industry median of 24.67. Ramco Systems' overall GF Score™ is 63/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Ramco Systems (NSE:RAMCOSYS), the current Interest Coverage is 22.66 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ramco Systems (NSE:RAMCOSYS) Overvalued in 2026?
Based on GuruFocus' analysis, Ramco Systems stock appears to be overvalued.
The current stock price of ₹673.80 is trading 47.1% above its estimated GF Value™ of ₹457.94.
GuruFocus considers Ramco Systems to be Significantly Overvalued.
Key valuation signals for NSE:RAMCOSYS:
Interest Coverage: 22.66 (97% above median its 10-year median of 11.53)
GF Value™: ₹457.94 vs. price of ₹673.80 (47.1% above fair value)
Industry Position: 8.1% below the Software median (#725 of 1705)
No single metric tells the full story. See the NSE:RAMCOSYS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ramco Systems Ltd develops software and software products for human capital management, payroll, enterprise resource management, monitoring and evaluation, and maintenance, repair, and overhaul providers in the Aviation industry. The company develops software through its enterprise application assembly and delivery platform Ramco VirtualWorks for transaction systems and Ramco Decision Works for analytics/reporting. The product portfolio of the company includes aviation, aerospace & defense management software, enterprise resource planning software, and payroll & logistics software on the cloud. It as only one operating segment which is Software Solutions & Services.
63GF Score
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