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Last Updated on: 19 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of R Systems International Ltd

Basic Stock Data

Last Updated: June 19, 2024, 2:27 pm

Market Cap 5,837 Cr.
Current Price 493
High / Low599/371
Stock P/E44.3
Book Value 51.7
Dividend Yield1.37 %
ROCE26.1 %
ROE24.3 %
Face Value 1.00
PEG Ratio4.32

Competitors of R Systems International Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
California Software Company Ltd 26.4 Cr. 17.123.2/12.042.6 7.900.00 %4.42 %5.21 % 10.0
Alphalogic Techsys Ltd 1,300 Cr. 277401/32.6314 8.480.00 %17.1 %12.3 % 5.00
Onward Technologies Ltd 925 Cr. 410740/33427.3 92.00.73 %21.8 %17.8 % 10.0
Avance Technologies Ltd 204 Cr. 1.031.71/0.2441.8 1.900.00 %%1.31 % 1.00
Subex Ltd 1,698 Cr. 30.145.8/22.4 5.920.00 %5.35 %13.5 % 5.00
Industry Average37,409.87 Cr716.7463.85125.680.71%20.23%19.77%6.86

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales248274306329343375398400404407457416417
Expenses217237257284302329344342350354375354363
Operating Profit31364945424654575453826353
OPM %12%13%16%14%12%12%14%14%13%13%18%15%13%
Other Income52565531254022
Interest1111111222333
Depreciation6678889101010171717
Profit before tax28544741373945484846624436
Tax %13%15%19%20%21%19%19%14%25%68%29%-3%24%
Net Profit25463833303237413614444627
EPS in Rs2.083.863.142.772.512.693.113.503.031.223.723.882.32

Last Updated: June 9, 2024, 2:23 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 5:59 am

MonthDec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Mar 2020Dec 2020Dec 2021Dec 2022Dec 2023TTM
Sales5966486055885937008098098811,1561,5161,6851,697
Expenses5185585335185606437367367649951,3161,4331,446
Operating Profit7891737133577373116161200252251
OPM %13%14%12%12%6%8%9%9%13%14%13%15%15%
Other Income434701716191515114210129
Interest11110022655910
Depreciation10111412131415152628355461
Profit before tax72112128763563727296170170200189
Tax %27%30%23%29%36%19%19%19%15%17%18%30%
Net Profit537898542351585882141140140132
EPS in Rs4.166.137.714.331.824.124.834.866.8411.9611.8111.8411.14
Dividend Payout %49%95%51%0%0%14%31%0%0%48%55%57%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2020-2021
YoY Net Profit Growth (%)143.10%
Change in YoY Net Profit Growth (%)0.00%

R Systems International Ltd has shown a consistent positive trend in YoY Net Profit Growth (%) in the last 1 years from 2020-2021 to 2020-2021.

Growth

Compounded Sales Growth
10 Years:11%
5 Years:19%
3 Years:24%
TTM:8%
Compounded Profit Growth
10 Years:10%
5 Years:22%
3 Years:19%
TTM:-10%
Stock Price CAGR
10 Years:29%
5 Years:63%
3 Years:54%
1 Year:23%
Return on Equity
10 Years:23%
5 Years:25%
3 Years:28%
Last Year:24%

Last Updated: June 16, 2024, 4:57 pm

R Systems International Ltd Balance Sheet

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Mar 2020Dec 2020Dec 2021Dec 2022Jun 2023
Equity Capital12131313121212121212121212
Reserves182219200230266259311326415448534583
Borrowings11112226235877128
Other Liabilities102114159111103119119148200174210253
Total Liabilities298347373356383392443493650692833976
Fixed Assets6574708080464572111127156145
CWIP110030220031
Investments01241262220341313140
Other Assets231271302235274323377384526552661830
Total Assets298347373356383392443493650692833976

Reserves and Borrowings Chart

R Systems International Ltd Cash Flow

MonthDec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Mar 2020Dec 2020Dec 2021Dec 2022Dec 2023
Cash from Operating Activity 487245443731641258796211
Cash from Investing Activity 074111-58-318-3219-8-223
Cash from Financing Activity -21-53-113-19-1-9-4610-116-86-41
Net Cash Flow2726-2735-22-926103-92-52

Free Cash Flow

MonthDec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Mar 2020
Free Cash Flow77.0090.0072.0069.0031.0055.0067.0093.00103.00123.00121.0073.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthDec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Mar 2020Dec 2020Dec 2021Dec 2022Dec 2023
Debtor Days6470636774716054566254
Inventory Days
Days Payable
Cash Conversion Cycle6470636774716054566254
Working Capital Days24-0223226553840444716
ROCE %34%40%30%27%13%21%22%26%36%31%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters51.58%51.58%51.67%51.67%51.67%51.67%51.67%51.67%51.93%51.93%51.93%51.93%
FIIs0.00%0.65%0.81%0.51%0.42%0.42%0.40%0.25%0.17%0.19%0.25%0.61%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.71%0.69%0.78%1.03%
Public48.42%47.77%47.51%47.82%47.91%47.91%47.93%48.08%47.22%47.20%47.06%46.45%
No. of Shareholders15,01522,71928,69134,95036,09235,20029,95430,09727,86328,58429,34130,437

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthDec 23Dec 22Dec 21Dec 20Dec 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)11.8411.8111.856.874.82
Diluted EPS (Rs.)11.8411.8111.856.874.82
Cash EPS (Rs.)16.4814.7614.309.016.10
Book Value[Excl.RevalReserv]/Share (Rs.)72.0346.1138.9135.6728.28
Book Value[Incl.RevalReserv]/Share (Rs.)72.0346.1138.9135.6728.28
Revenue From Operations / Share (Rs.)142.38128.1297.6873.6367.67
PBDIT / Share (Rs.)22.3017.7517.1310.857.39
PBIT / Share (Rs.)17.7114.8014.798.716.15
PBT / Share (Rs.)16.9514.3814.388.086.01
Net Profit / Share (Rs.)11.8811.8111.956.874.86
NP After MI And SOA / Share (Rs.)11.8411.8111.956.874.86
PBDIT Margin (%)15.6613.8517.5314.7310.92
PBIT Margin (%)12.4311.5415.1411.829.08
PBT Margin (%)11.9011.2214.7110.978.88
Net Profit Margin (%)8.349.2112.239.337.18
NP After MI And SOA Margin (%)8.319.2112.239.337.18
Return on Networth / Equity (%)22.9125.6030.7219.2617.18
Return on Capital Employeed (%)22.1327.5633.0920.8419.91
Return On Assets (%)10.6516.7620.4212.6511.79
Long Term Debt / Equity (X)0.000.000.000.010.01
Total Debt / Equity (X)0.090.000.000.010.01
Asset Turnover Ratio (%)1.571.301.030.910.97
Current Ratio (X)1.703.183.283.403.15
Quick Ratio (X)1.703.183.283.403.15
Dividend Payout Ratio (NP) (%)57.4155.050.000.0037.24
Dividend Payout Ratio (CP) (%)41.3544.020.000.0029.65
Earning Retention Ratio (%)42.5944.950.000.0062.76
Cash Earning Retention Ratio (%)58.6555.980.000.0070.35
Interest Coverage Ratio (X)29.4842.8841.2622.9056.48
Interest Coverage Ratio (Post Tax) (X)16.7129.5229.7915.8338.14
Enterprise Value (Cr.)6538.572774.233611.841202.25695.59
EV / Net Operating Revenue (X)3.881.833.131.370.85
EV / EBITDA (X)24.7813.2117.829.277.87
MarketCap / Net Operating Revenue (X)3.851.983.321.641.03
Retention Ratios (%)42.5844.940.000.0062.75
Price / BV (X)10.625.508.343.392.48
Price / Net Operating Revenue (X)3.851.983.321.641.03
EarningsYield0.020.040.030.050.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 564.17

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 14.44% compared to the current price 493

Intrinsic Value: 621.98

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 26.16% compared to the current price ₹493

Last 5 Year EPS CAGR: 10.25%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 23.33%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 28.67, which is a positive sign.
  3. The company has higher reserves (317.33 cr) compared to borrowings (25.33 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (479.46 cr) and profit (111.92 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 57.92, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in R Systems International Ltd:
    1. Net Profit Margin: 8.34%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 22.13% (Industry Average ROCE: %)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 22.91% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 16.71
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.70
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 44.3 (Industry average Stock P/E: )
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.09
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

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FAQ

What is the latest fair value of R Systems International Ltd?

The latest fair value of R Systems International Ltd is ₹564.17.

What is the Market Cap of R Systems International Ltd?

The Market Cap of R Systems International Ltd is 5,837 Cr..

What is the current Stock Price of R Systems International Ltd as on 19 June 2024?

The current stock price of R Systems International Ltd as on 19 June 2024 is ₹493.

What is the High / Low of R Systems International Ltd stocks in FY 2024?

In FY 2024, the High / Low of R Systems International Ltd stocks is 599/371.

What is the Stock P/E of R Systems International Ltd?

The Stock P/E of R Systems International Ltd is 44.3.

What is the Book Value of R Systems International Ltd?

The Book Value of R Systems International Ltd is 51.7.

What is the Dividend Yield of R Systems International Ltd?

The Dividend Yield of R Systems International Ltd is 1.37 %.

What is the ROCE of R Systems International Ltd?

The ROCE of R Systems International Ltd is 26.1 %.

What is the ROE of R Systems International Ltd?

The ROE of R Systems International Ltd is 24.3 %.

What is the Face Value of R Systems International Ltd?

The Face Value of R Systems International Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in R Systems International Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE