Are you looking for a detailed analysis of Ramky Infrastructure Share Price Target for the coming years?
Ramky Infrastructure Limited stands as a significant player in India’s rapidly expanding infrastructure landscape. As the nation’s economy surges forward, propelled by ambitious infrastructure development plans, companies like Ramky are poised to play a pivotal role. For investors tracking the pulse of this growth, understanding the potential trajectory of Ramky Infrastructure’s share price is of paramount importance.
This analysis delves into a year-by-year projection of Ramky Infrastructure’s share price targets, spanning from 2025 to 2030. By examining key growth drivers, market dynamics, and the company’s inherent strengths and limitations, we aim to provide a comprehensive outlook for investors seeking to understand the future value proposition of Ramky Infrastructure in the coming years.
Ramky Infrastructure: Market Overview
| Metric | Value |
|---|---|
| 52 Week High | ₹ 799 |
| 52 Week Low | ₹ 427.80 |
| Market Cap | ₹ 3,751.56 Cr. |
| Enterprise Value | ₹ 4,106.95 Cr. |
| No. of Shares | 6.92 Cr. |
| P/E | 11.87 |
| Face Value | ₹ 10 |
| Dividend Yield | 0 % |
| Cash | ₹ 91.09 Cr. |
| Debt | ₹ 446.48 Cr. |
| Promoter Holding | 69.81 % |
| EPS (TTM) | ₹ 45.68 |
| Sales Growth | 37.94% |
| ROE | 33.37 % |
Table of Contents
Ramky Infrastructure Share Price Target 2025 – 2030
| Year | Target Price (₹) |
|---|---|
| 2025 | 75 |
| 2026 | 85 |
| 2027 | 95 |
| 2028 | 105 |
| 2029 | 115 |
| 2030 | 125 |
Ramky Infrastructure Share Price Target: 2025-2030 – Year-by-Year in Depth Analysis
Ramky Infrastructure Share Price Target 2025
Target – ₹75
In 2025, Ramky Infrastructure is projected to reach a share price target of ₹75. This initial target is grounded in the expectation that the company will effectively leverage its current strong order book and capitalize on the expanding Indian infrastructure sector. The robust order book provides substantial revenue visibility for the near term, and continued government focus on infrastructure development is expected to create a favorable operating environment. Operational efficiencies gained in recent periods are anticipated to further enhance profitability as project execution progresses. This target reflects a strong start to the forecast period, driven by solid fundamentals and positive sector tailwinds.
Key Growth Drivers for 2025:
- Strong Order Book Execution: Converting the existing robust order book into revenue will be a primary driver.
- Infrastructure Sector Growth: Continued expansion of the Indian infrastructure sector will provide ample opportunities.
- Government Infrastructure Focus: Government spending and policy support for infrastructure will create a positive business environment.
- Operational Efficiencies: Ongoing improvements in operational efficiency will boost profitability.
Ramky Infrastructure Share Price Target 2026
Target – ₹85
For 2026, the share price target for Ramky Infrastructure is set at ₹85. This increase from the previous year’s target reflects the anticipation of sustained revenue growth and a notable improvement in profitability margins. As the company continues to execute its existing projects and strategically secure new contracts, the benefits of economies of scale and optimized operational processes are expected to become increasingly evident. Furthermore, a gradually improving market sentiment and increased investor confidence in Ramky Infrastructure’s execution capabilities are factored into this target. The company’s ability to maintain its growth trajectory and enhance profitability will be crucial in achieving this projected share price.
Key Growth Drivers for 2026:
- Sustained Revenue Growth: Building on the momentum of 2025 with continued project execution and new order wins.
- Improved Profitability Margins: Realizing benefits from scale, efficient operations, and potentially better contract terms.
- Positive Market Sentiment: Growing investor confidence in the infrastructure sector and Ramky Infrastructure specifically.
- New Contract Acquisitions: Successfully securing new projects to replenish and expand the order book.
Ramky Infrastructure Share Price Target 2027
Target – ₹95
By 2027, the forecasted share price target for Ramky Infrastructure rises to ₹95. This target anticipates a further consolidation of the company’s market position and enhanced operational performance. During this period, Ramky Infrastructure is expected to demonstrate even greater operational efficiencies and improved asset utilization, leading to a stronger bottom line and higher earnings per share (EPS). The target also considers the company’s proactive adoption of technological advancements and innovative project execution methodologies. These factors are expected to translate into enhanced financial performance, improved returns for investors, and increased market confidence in Ramky Infrastructure’s long-term vision.
Key Growth Drivers for 2027:
- Enhanced Operational Efficiencies: Continuous improvement in operational processes and cost optimization.
- Optimized Asset Utilization: Maximizing the efficiency and returns from the company’s asset base.
- Technological Advancements & Innovation: Leveraging technology to improve project execution, reduce costs, and gain a competitive edge.
- Stronger Earnings Per Share (EPS): The combined effect of revenue growth and enhanced profitability driving higher EPS.
Ramky Infrastructure Share Price Target 2028
Target – ₹105
In 2028, the share price target for Ramky Infrastructure is projected to reach ₹105. This target is driven by the anticipation of continued sector-wide growth in infrastructure development across India, coupled with Ramky Infrastructure’s expanding market presence and capabilities. As the pace of infrastructure development accelerates, Ramky Infrastructure is expected to be well-positioned to secure and effectively execute larger-scale and more complex projects. Furthermore, consistent improvements in key financial metrics such as Return on Capital Employed (ROCE) and Return on Equity (ROE) are expected to justify this higher target price. This reflects the company’s strengthening fundamentals and its ability to capitalize on the burgeoning infrastructure market.
Key Growth Drivers for 2028:
- Continued Sector-Wide Growth: Sustained expansion of the infrastructure sector providing a large and growing market.
- Expanding Market Presence: Ramky Infrastructure increasing its footprint and securing larger projects.
- Government Infrastructure Push: Ongoing government initiatives and investments in infrastructure development.
- Improving ROCE and ROE: Stronger financial returns attracting investor interest and supporting higher valuations.
Ramky Infrastructure Share Price Target 2029
Target – ₹115
For 2029, the share price target for Ramky Infrastructure moves to ₹115, indicating a transition towards a phase of mature and stable growth. During this year, the company is expected to demonstrate consistent and predictable revenue growth, coupled with effective cost management strategies. This focus on efficiency and stability is anticipated to result in healthy and sustainable profit margins. A proven track record of successful project completions and consistent financial discipline is expected to further solidify investor confidence in Ramky Infrastructure, supporting this steady and reliable increase in the projected share price.
Key Growth Drivers for 2029:
- Stable and Consistent Revenue Growth: Predictable revenue streams indicating a mature and reliable business model.
- Effective Cost Management: Maintaining tight control over costs to maximize profitability.
- Healthy Profit Margins: Sustainable and attractive profit margins driven by efficiency and stable revenues.
- Proven Track Record: Consistent project delivery and financial prudence building long-term investor trust.
Ramky Infrastructure Share Price Target 2030
Target – ₹125
By 2030, the share price target for Ramky Infrastructure is projected to reach ₹125, representing the culmination of a sustained and successful growth trajectory throughout the forecast period. At this stage, Ramky Infrastructure is anticipated to have firmly established itself as a leading and highly respected player within the Indian infrastructure sector. This target reflects expectations of long-term profitability, efficient capital allocation, a balanced and sustainable growth strategy, and potentially strategic expansion into new geographical markets or infrastructure verticals. Continued focus on technological innovation and a consistently robust order book are expected to be the primary drivers of sustained shareholder value creation for Ramky Infrastructure well into the next decade.
Key Growth Drivers for 2030:
- Established Leadership Position: Ramky Infrastructure recognized as a leader in the Indian infrastructure sector.
- Long-Term Profitability: Sustainable and growing profitability driven by efficiency and market leadership.
- Efficient Capital Allocation: Strategic and effective deployment of capital for optimal returns.
- Balanced Growth Strategy: Diversified growth across geographies and infrastructure segments.
- Continued Technological Innovation: Maintaining a competitive edge through technology adoption and innovation.
- Robust Order Book: pipeline of future projects ensuring long-term revenue visibility and growth.
Ramky Infrastructure: Strengths and Areas to Consider
A balanced perspective is crucial for evaluating any investment opportunity. Here’s an analysis of Ramky Infrastructure’s key strengths and potential limitations to help investors make informed decisions:
Strengths – Key Competitive Advantages:
- Impressive Profit Growth (Past 3 Years): Ramky Infrastructure has demonstrated robust profitability, achieving an outstanding profit growth of 88.30% over the past three years. This significant growth rate signals strong operational performance and effective management in driving bottom-line results. Such high profit growth is a compelling indicator of the company’s potential for future earnings expansion.
- Strong Revenue Growth Trajectory (Past 3 Years): The company has also exhibited healthy top-line performance, with a solid revenue growth of 30.63% over the last three years. Consistent revenue growth at this pace indicates a strong market demand for Ramky Infrastructure’s services and its ability to effectively capture and capitalize on infrastructure development opportunities.
- Sustained High Return on Equity (ROE): Ramky Infrastructure has maintained an impressive average Return on Equity (ROE) of 26.44% over the past three years. This excellent ROE demonstrates the company’s efficiency in generating profits from shareholders’ investments. It signifies strong profitability and effective utilization of equity capital, making it attractive for investors seeking high returns.
- Sustained High Return on Capital Employed (ROCE): Similarly, Ramky Infrastructure has consistently achieved a healthy Return on Capital Employed (ROCE) of 30.16% over the past three years. This robust ROCE highlights the company’s effectiveness in generating profits from its total capital employed, including both equity and debt. It underscores efficient capital management and strong operational profitability.
- Comfortable Debt Servicing Capacity (Healthy Interest Coverage Ratio): With a healthy interest coverage ratio of 8.11, Ramky Infrastructure demonstrates a strong capacity to comfortably meet its interest obligations. This indicates a low risk of financial distress related to debt servicing and provides financial stability, even in fluctuating economic conditions.
- Attractive Valuation Relative to Growth (Low PEG Ratio): Ramky Infrastructure’s PEG ratio of 0.17 is exceptionally low. This suggests that the company’s stock price is significantly undervalued when considering its high earnings growth potential. A very low PEG ratio often points to a compelling investment opportunity, offering growth at a bargain valuation.
- Efficient Cash Flow Generation (Strong CFO/PAT Ratio): A CFO/PAT ratio of 1.41 indicates robust cash flow management at Ramky Infrastructure. This ratio, greater than 1, implies that the company is generating cash from its operations that exceeds its reported profits. Strong cash flow generation provides financial flexibility for reinvestment, debt reduction, and potential dividend payouts.
Limitations – Areas for Investor Consideration:
- Significant Contingent Liabilities: Ramky Infrastructure has reported contingent liabilities of ₹536.63 Cr. Contingent liabilities are potential obligations that may arise depending on the outcome of future events. While not current debts, these liabilities represent a potential financial risk that investors should be aware of and monitor. Understanding the nature and likelihood of these liabilities materializing is important.
- Elevated Promoter Pledging: Promoter pledging at 25.70% is considered relatively high. Pledging of shares by promoters is often used to raise funds, but high levels of pledging can be viewed negatively by the market. It can raise concerns about promoter financial stress or potential share overhang if pledges are invoked. Investors should monitor the trend of promoter pledging and understand the reasons behind it.
Ramky Infra Shareholding Pattern
| Shareholder | Percentage |
|---|---|
| Promoter | 69.81% |
| Public | 28.94% |
| FII | 0.74% |
| DII | 0.51% |
Peer Comparison
| COMPANY | PRICERs. | MCAPCr. | P/E | EPSRs. | ROE% | EV/EBITDA |
|---|---|---|---|---|---|---|
| Ceigall India | 294.05 | 5,119.01 | 17.82 | 16.49 | 37.13 | 9.99 |
| Enviro Infra Engine. | 262.80 | 4,612.05 | 40.43 | 6.50 | 53.76 | 26.90 |
| Nirlon | 511.70 | 4,611.34 | 22.00 | 23.26 | 53.06 | 11.14 |
| EMS | 789.80 | 4,381.38 | 23.96 | 32.94 | 23.72 | 16.37 |
| Patel Engineering | 48 | 4,030.21 | 15.40 | 3.10 | 9.52 | 6.29 |
| Ramky Infrastructure | 542.15 | 3,771.28 | 11.93 | 45.68 | 33.37 | 7.62 |
| Oriana Power | 3,233.39 | 58.65 | 27.13 | 58.92 | 40.23 | |
| KP Energy | 419.95 | 2,798.31 | 37.34 | 11.24 | 38.42 | 22.83 |
| SEPC | 17.41 | 2,768.47 | 123.04 | 0.14 | 1.98 | 36.72 |
| Bajel Projects | 238 | 2,751.86 | 140.29 | 1.70 | 1.52 | 35.51 |
Ramky Infra Financials:
Profit & Loss (All Figures in Cr. Adjusted EPS in Rs.)
| PARTICULARS | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
|---|---|---|---|---|---|
| Net Sales | 1,253.58 | 912.20 | 1,297.91 | 1,473.99 | 2,033.19 |
| Total Expenditure | 1,215.52 | 854.44 | 1,152.11 | 1,171.81 | 1,548.80 |
| Operating Profit | 38.05 | 57.76 | 145.80 | 302.19 | 484.39 |
| Other Income | 88.69 | 96.97 | 235.25 | 97.27 | 103.93 |
| Interest | 89.50 | 75.16 | 96.37 | 71.75 | 68.29 |
| Depreciation | 26.12 | 18.49 | 18.17 | 26.65 | 34.50 |
| Exceptional Items | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 11.12 | 61.09 | 266.51 | 301.06 | 485.53 |
| Tax | 8.39 | 7.14 | 148.14 | 86.59 | 125.31 |
| Net Profit | 2.74 | 53.95 | 118.37 | 214.47 | 360.22 |
| Adjusted EPS (Rs.) | 0.40 | 7.80 | 17.11 | 30.99 | 52.06 |
Balance Sheet (All Figures are in Crores.)
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
|---|---|---|---|---|---|
| Equity and Liabilities | |||||
| Share Capital | 69.20 | 69.20 | 69.20 | 69.20 | 69.20 |
| Total Reserves | 443 | 496.83 | 616.73 | 830.68 | 1,189.95 |
| Borrowings | 403.29 | 346.69 | 329.25 | 340.09 | 300.11 |
| Other N/C liabilities | -87.35 | -88.26 | 28.70 | 76.10 | 173.60 |
| Current liabilities | 1,102.13 | 1,010.80 | 921.02 | 996.40 | 1,125.19 |
| Total Liabilities | 1,930.27 | 1,835.26 | 1,964.90 | 2,312.46 | 2,858.04 |
| Assets | |||||
| Net Block | 60.96 | 47.79 | 73.70 | 143.90 | 175.98 |
| Capital WIP | 0.01 | 0 | 13.05 | 2.61 | 0 |
| Intangible WIP | 0 | 0 | 0 | 0 | 0 |
| Investments | 389.34 | 396.53 | 405.08 | 412.53 | 408.04 |
| Loans & Advances | 388.34 | 396.02 | 425.58 | 464.89 | 514.40 |
| Other N/C Assets | 4.19 | 40.34 | 62 | 75.59 | 60.96 |
| Current Assets | 1,087.44 | 954.58 | 985.48 | 1,212.95 | 1,698.64 |
| Total Assets | 1,930.27 | 1,835.26 | 1,964.90 | 2,312.46 | 2,858.04 |
Cash Flows (All Figures are in Crores.)
| PARTICULARS | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
|---|---|---|---|---|---|
| Profit from operations | 11.12 | 61.09 | 266.51 | 301.06 | 485.53 |
| Adjustment | 65.69 | 52.44 | 37.92 | 53.36 | 39.23 |
| Changes in Assets & Liabilities | -9.52 | 58.50 | -90.91 | -164.16 | -133 |
| Tax Paid | 5.91 | 42.37 | 14.38 | 14.20 | -51.07 |
| Operating Cash Flow | 73.20 | 214.40 | 227.89 | 204.46 | 340.69 |
| Investing Cash Flow | 65.53 | -30.21 | -66.82 | -134.99 | -113.29 |
| Financing Cash Flow | -137.39 | -189.80 | -157.92 | -76.88 | -217.11 |
| Net Cash Flow | 1.34 | -5.62 | 3.16 | -7.40 | 10.29 |
Conclusion:
Ramky Infrastructure presents a compelling growth narrative, with projected share price targets indicating a strong upward trend from 2025 to 2030. Fueled by robust order books, impressive historical financial performance, and tailwinds from India’s expanding infrastructure sector, the company demonstrates significant potential for value creation. Highlighted strengths in profitability, revenue growth, and efficient cash flow management, coupled with an attractive valuation, paint a promising picture. However, investors should be cognizant of existing contingent liabilities and promoter pledging levels, which warrant ongoing monitoring. Overall, Ramky Infrastructure offers a potentially rewarding investment opportunity within the dynamic infrastructure space, contingent upon continued strong execution and prudent risk management. A balanced approach, considering both the company’s robust growth prospects and the identified limitations, is essential for informed investment decisions.
Disclaimer:
Disclaimer: The share price targets, and analysis provided in this article are for informational and educational purposes only and should not be considered financial advice. Investment in the stock market is inherently risky and subject to market fluctuations. The projections presented are based on current analysis, publicly available data, and market expectations as of early 2025, all of which are subject to change. Past performance is not indicative of future results. Investors are strongly advised to conduct their own independent research, consider their personal financial circumstances and risk appetite, and consult with a qualified financial advisor before making any investment decisions regarding Ramky Infrastructure or any other security. We are not SEBI registered advisors, and this analysis does not constitute a buy, sell, or hold recommendation for any stock.