I hold ramco from 150 levels – the key determinant would be how well they do in the US market where they are up against the large guys in this industry – workday, oracle. while they have the advantage of a india developed product, the customer friendliness remains to be seen. Operating leverage is massive in this business and this can go to about 25 % EBITDA at a teen growth. So, if they can do about Rs. 400 Cr. by FY 17 and do a 25 % margin, EBITDA should be about Rs 100 Cr. – so at this level, it looks fairly valued.
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