Company has reported two profitable quarters after 7 years of loses.
Is anyone aware what’s happening in the company?
2 Likes
Latest Q result was mindblowing & hence continuous UCs with huge volume waiting to enter everyday
I read many negative comments about the promoter on this thread in past - like he didnt mention that 80-85% revenue was coming from Visa, dodging the questions on TV interview etc.
Is the bad time over for the company?
please share the view if anyone started tracking it recently
Disc : invested tracking Quantities.
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How do you get to take the position in continuous uc after the great quarterly result. I also want to invest but not getting chance to enter due to uc.
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I was going through the AR and linkedin posts and it seems their investments in product development has finally started to bear fruits specially in US markets.
If they are able to sustain Q3 results then a big rerating will happen in the company (just like what happened with NPST last year)
Payment/banking software/platform cos enjoy very high OPMs and trade at high valuation multiples
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RS SOFT CEO interview
Have done 100crs investment in last 5-7 yrs for developing software/platform in entire payments valuechain. Looks like these investments have started to bear fruits now. Recent quarters already show turnaround happening!!!
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I am not tracking the company now but i know during 2015-2017 the company made many tall claims and took the investors for a big ride. Raj Jain has a habit of promising big things. During those times, they used to say that they are working with NPCI and they are part of all the digital stakes India has build including UPI. However, the revenue never became visible and eventually the investors suffered. So we should not just judge them by 1-2 quarters of results.
Disc: Not invested.
4 Likes
I invested in RS Software way back in 2013. Made very good multibagger returns in this stock that time. This is a company which at that time did not disclose the name of its single biggest client. The share of this company grew more than 100 times and almost nobody still knew this company as it is a very secretive company.
After a gap of almost 6-7 years of negative returns, this company is finally turning out a new chapter in its life. It has invested 100-150 Crores of its own money in developing the backbone of new generation Indian payment system Unified Payment Interface (UPI). They have also produced Bharat Bill Payment System (BBPS) and various other popular softwares for Fraud Risk Management etc. Many other countries are now waking up to the huge payment revolution in India and they and their financial institutions want to copy this success in which RS Software can help them. These software implementation tenders can be in millions or billions which only the future can tell.
But one thing I have learnt from past times is that this company generally has a good performance window (fundamentally) of atleast 4-5 years, once it starts growing. If the company can just repeat its current quarter Consolidated EPS of Rs 3 in the coming quarters, then the yearly EPS in future can be easily Rs 12. I am not including extra Rs 2 per share of Depreciation being shown yearly in the P&L which if added will make the EPS Rs 14 as Depreciation is not actual cash going out of business.
If the company grows for the next 4-5 years as its products have finally started gaining traction, then sky is the limit and EPS could be Rs 40-Rs 100 in that long time frame. In good times a fast growing company could easily command a PE of anywhere close to 50 which can make this stock a Mega Multibagger like NPST (EPS*PE). Hence I am a long term investor in this company until and unless I get a serious red flag, on which I can easily sell my entire holding. Hoping for the best for this exciting fast growing company and multibagger returns for myself.
Disclosure: Invested in this company since almost one year for the very long term. Will sell in an instant in case of some serious red flag or the growth slowing. My calculations can be wrong. I am not a SEBI registered advisor. Please take anything I say with a pinch of salt. This is not a buy or sell recommendation. I have contract notes to prove my point.
Amit Goyal
9 Likes
The overall results seems to be pretty good, if viewed from the long term perspective. The best part about these March 2024 quarter results is that they prove that the results of the previous quarter December 2023 were not a one time fluke. The sales of March 2024 quarter are almost the same as the December 2023 quarter, but due to increased Employee benefits expense, the profits are a little less. The increased Employee benefits expense (Almost 60% increase) from December 2023 quarter is a huge positive sign for the upcoming quarters. Year on Year, the results are simply tremendous. When all of the Big IT companies across the world are firing their employees, this small IT company is hiring aggressively.
The opening of a branch office in Canada is a huge positive sign. The declaration of no dividend is somewhat negative. But the company is in an infant growth stage and it may be requiring cash for exploring new markets and clients. In a nutshell, the company has recovered from a period of 6-7 years of negative returns and degrowth to a higher orbit of growth with a very good chance of multi year growth ahead of it. It has a track record of becoming a 50 to 100 bagger, a couple of times earlier in its history.
So my personal thesis for investing in this stock is intact, that over a period of 4-5 years it EPS can grow to anywhere between 40-100 and in a bull market for a growing company, the rerated PE can reach anywhere between 50-100 (before this quarters result, the PE of this stock anyway reached approximately 63 on an TTM EPS of Rs 4.8 till December 2023). Even many other payment and fintech companies like NPST and Trust Fintech have PEs in excess of 100-120.
Hence I am still a long term investor in this company until and unless I get a serious red flag, on which I can easily sell my entire holding. Hoping for the best for this exciting fast growing company and mega multibagger returns for myself.
Disclosure: Invested in this company since one year for the very long term. I will sell in an instant in case of some serious red flags. My calculations can be wrong. I am not a SEBI registered advisor. Please take anything I say with a pinch of salt. This is not a buy or sell recommendation. I have contract notes to prove my point.
Amit Goyal
4 Likes
Did any one notice if they have plan for quarterly concall scheduled for Q4FY24? So far I have not noticed in any communication so wondering if I missed it?
1 Like