for what i found out the pe is at 7-8 due to their high dependence on one client-VISA, now according to last report they are trying to reduce this dependence and increase their client base, this year a rerating is due to what extent , let markets decide,within 1 month vst tillers got rerated from pe 8 to pe 20…anything is possible in bull markets sir.
One correction in my previous post.
Based on the latest AR, the company has 95 Crore as Cash in various formats (MF,FD,Current Account) vs 50 Crore mentioned in the post. This is approx. 25% of the company’s Market cap.
12% up today and much more to come, i really hope they announce bonus during agm.
I read some comments in Glassdoor and most employees seem to be concerned about the lack of client diversification. The story will get better if they get any work in RuPay.
I don’t think the best under the billion award tells anything about the management quality. Glodyne technoserve won the same award and the company collapsed and needless to say that the stock went from Rs 700 to 7. In Glassdoor, the CEO of RSS has the least approval rate among several Indian mid tier companies that I checked.
On the other hand, DK has increased her stake further to 3.8%. At this point I just hope that the company issued warrants to the promoters with an intent to increase their stake for the greater good.
Disc: Invested.
If the numbers are not real, all deals are off. Glodyne seemed to be such a case, apart from the fact that the promoters pledged their shares heavily, may be, knowing the real numbers and in connivance with the bankers. To hide this, they went on acquisition spree and then started announcing losses after losses. They have not even published AR after 2012. Is SEBI listening/reading?
While in the case of RSS, the promoters have bought heavily through warrants and increased their stake from 20% to 40% almost. There is no pledging and the company is sitting on a pile of cash. Company pays dividends regularly, I think from 2010, has issued bonus in the ratio of 28:10 in 2010 and has grown organically and not through acquisitions. DK has increased stake by 3.8%. These are all positive indicators. Market is expecting bonus this time around and that’s why there is a lot of momentum in the script. If that happens, you will see lots of positivity going forward for this stock.
I agree that you can’t make investment on the basis of awards and accolades.
@sathya, lets not compare this will companies like Glodyne, the company has been consistently doing and posting very good results and sitting on very good reserves and cash, zero pledge, zero debt, they have acquired a new processor in europe, business is doing very well and they are expecting more orders, DK is no ordinary investor, adding 60k every quarter, the lady seems to be taking her percentage up every quarter. Barclays wealth has added another whooping 4.5% stake last quarter.dividends increasing qtrly, shareholders may get around 8-10rs fy15, so good times ahead for RS, and really hope bonus is icing on the cake!!
I am optimistic about the prospects for the company and hence I stay invested. I just wanted to say that awards can be deceptive. Being cautious wont hurt 
Guys Sorry about a simple question Who is DK?
Thanks
Mukul
@Mukul
DK - Dolly Khanna
A very astute investor with stocks like TTK Prestige(exited now), Hawkins, Cera, Selan Exploration and other high fliers in her portfolio. she now owns close to 3.8% stake in this company.
This one’s doing well even in Tanking markets.
@anmol, Reliance wealth management bought 70k shares at 325.75 on 10th july. results on 17th july and AGM on 18th.
Hi,
I see in BSE website that the circuit for RSS has been revised to 10% from tomorrow. I was under the impression that the circuit will be revised when we have UC or LC on subsequent days, which doesn’t seem to be the case now.
http://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20140716-13
Is it just SEBI’s discretion? Can someone pls explain?
Cheers,
Sathya
AGM on Friday, 18th July in Kolkata.
Anyone attending?
Results are out:
sales up 10% yoy
Profits up 50% yoy
Company declares 1 Rs dividend.
gyanji, a good q1 and a good beginning for the year FY15, all four quarters dividends to be announced looks like, an earnings of atleast 56 for year end, whats your opinion.future looks bright for this gem
p.s.will add to my existing holding
September is generally the best quarter. It should give a much clearer hint as to where the final EPS for the year will land. Company has close to 100 crore in cash so dividend should not be an issue.
As expected, good numbers for Q1 though dividend is insignificant. Did anyone attend the AGM? Any updates on use of cash or Bonus?
dear all, Raj jains comments on annual general meet on 18th july @ kolakatta
Commenting on the results, Raj Jain, Chairman & Managing Director, RS Software India Ltd said, âFirst quarter financial performance is in line with our expectation and we expect to maintain our growth momentum in rest of the financial year, with focus on our profitability in particular. Our belief comes from the faster shift in the cashless transaction and e-commence market. The global electronic payments market is forecasted to reach $ 24 Trillion by 2018, riding on online and mobile use adding to an influx of payment optionsâ.
Recognitions:
*RS Software has been felicitated with Best Financial Performance award at The Economic Times Bengal Corporate Awards 2014
It’s good that management is confident of maintaining the growth momentum going forward but this is the same old stuff from the management. Do they have any concrete plan of actions regarding deployment of cash on the books? If nothing, then it’s high time that management understand the market expectations and start taking some market confidence building measures like one time high dividend, bonus or better yet, equity buyback. Do we have any concrete update from the management regarding development to reduce client concentration? These are some of the market concerns which are holding back re-rating of this stock.
It seems RSS is on the right path of valuation stages with increasing institutional interest. If management comes up with some market confidence building measures, It’ll be icing on the cake.
Sunidhi Securities recommends buy with target of Rs. 500:
Firstcall Research recommends buy with target of Rs. 430
:
Firstcall Research is bullish on RS Software (India) and has recommended buy rating on the stock with a target of Rs 430 in its July 19, 2014 research report
Disc: Invested and may add on dips
Firstcall Research is bullish on RS Software (India) and has recommended buy rating on the stock with a target of Rs 430 in its July 19, 2014 research report.
Firstcall Research is bullish on RS Software (India) and has recommended buy rating on the stock with a target of Rs 430 in its July 19, 2014 research report.
Firstcall Research is bullish on RS Software (India) and has recommended buy rating on the stock with a target of Rs 430 in its July 19, 2014 research report.
Firstcall Research is bullish on RS Software (India) and has recommended buy rating on the stock with a target of Rs 430 in its July 19, 2014 research report