RS Software

RS Software is a medium size software company based in Kolkata. The company's major focus is on the online payment industry since it's inception in 1991. Apart from this, the company also indulges in development of application for Software companies.

Year 08-09 09-10 10-11 11-12 12-13 13-14
YoY Growth
11% 20%
Net Profit
5.23 11.94 22.33 28.86 37.93 53.58
YoY Growth
128% 87% 29% 31% 41%
Margin %
3% 7% 11% 11% 12% 14%
4yCAGR 15.27%
5yCAGR 16.29%

The above table shows the consolidated revenue and profit after tax of the company in Rs Crores. The company has the 5Y CAGR ar 18.03% and the margin stands at 14% for FY 13-14. The sales have been growing >20% since 4 years now. The company is able to sustain it's margins with the growth.

Looking at the balance sheet of the company, the following are the highlights:

  • The company is debt free
  • The reserves of the company have gone up from just around Rs. 8 crores in 2008-09 to Rs. 163.03 Crores in FY 13-14.
  • The equity of the company stands at Rs. 12.80 Crores


  • The company's EPS for FY 13-14 is around Rs. 42.9, the P/E ratio is at 4.90 on 25th May, 2014
  • The Dividend Yield of the company is 1.9% on 25th May, 2014
  • Market Cap of the company: Rs. 250 Crores
  • P/C Ratio: 4.43
  • Price/Book: 1.49

The company will benefit from the growing online payment culture. Indian public is opening up to the idea of online payments steadily. RS Software boasts itself to be the "e-payment" expert.


  • Promoter Shareholding is just 38.5%
  • Of the 61.5% public shareholding, just 6.5% is of FII's and Mutual Funds.
  • Retail Shareholders have a major holding
  • Family Owned model
From various platforms on the internet and after reading the views of employees, I have noticed that the company is a family run business, though the employees are generally satisfied.
  • Few projects have larger share of revenue
This point again has been noted from reviews of ex-employees and current one's that the company has few large projects on which the major chunk of the revenue depends. This means that if the company looses any of it's big projects, there can be a sharp fall in the revenues. Also, the falling USD will impact the company's earnings and it will have a tough time keeping up with the growth it has been enjoying till now. Here is an excerpt from the CMD, Mr. Raj Jain's interview with CNBC (Credit: Moneycontrol):

"We had a very good quarter and a good fiscal year. Our company is focused on a domain of electronic payment solutions and as a matter of fact for the IT outsourcing industry from India; the main focus companies are the ones that are projected to have the maximum benefit for the development of the market place. In the course of this year, we have done some excellent strategic work with one of our major stakeholders in acquiring processor in Europe. That particularly is responsible especially in Q4 to contribute to larger growth and this is expected to continue for the next several quarters to come."

Looking at the growth, margins, healthy reserves, zero debt and regular dividend paying nature of RS Software, one can expect good returns from the stock in the long run.
PS: This is my first post on this great forum and I apologies for any mistake of fact or any error from my side, I hope seniors and members will give their valuable feedback on the same and guide me to come up with many more posts. As a disclaimer, I am invested in this stock from the past 1 month.

Dear Raghav,

There is already an existing thread for RS Software. I would request you to post on this thread, so that the admin / mod can delete this thread.


Please search the thread before creating a new thread. This is a self moderated, self disciplined forum. We insist all the members to follow self discipline and oblidge. The repetition of threads should be avoided. Admin please move the Raghav’s post to the relevant thread and delete this thread. Every member please note that if the forum code of conduct is not adhered to then their membership/posting rights may be suspended.