Fundamental Analysis of R Systems International Ltd

Basic Stock Data

Last Updated: May 19, 2024, 9:02 am

Market Cap	5,700 Cr.
Current Price	482
High / Low	599/241
Stock P/E	43.3
Book Value	51.7
Dividend Yield	1.41 %
ROCE	26.0 %
ROE	24.2 %
Face Value	1.00
PEG Ratio	2.22

Data Source: screener.in

Competitors of R Systems International Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Cybertech Systems & Software Ltd	459 Cr.	147	215/119	20.2	70.0	1.35 %	16.7 %	12.0 %	10.0
63 Moons Technologies Ltd	1,963 Cr.	426	691/162	9.95	704	0.45 %	1.99 %	1.43 %	2.00
Ace Software Exports Ltd	114 Cr.	179	186/17.4	34.6	45.8	0.00 %	1.29 %	0.81 %	10.0
Rolta India Ltd	104 Cr.	6.25	7.45/1.45		547	0.00 %	6.48 %	%	10.0
Xchanging Solutions Ltd	1,377 Cr.	124	177/59.4	112	46.0	24.3 %	9.23 %	6.96 %	10.0
Industry Average	803.40 Cr	176.45		35.35	282.56	5.22%	7.14%	4.24%	8.40

Quarterly Result

Month	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Sales	248	274	306	329	343	375	398	400	404	407	457	416	417
Expenses	217	237	257	284	302	329	344	342	350	354	375	354	363
Operating Profit	31	36	49	45	42	46	54	57	54	53	82	63	53
OPM %	12%	13%	16%	14%	12%	12%	14%	14%	13%	13%	18%	15%	13%
Other Income	5	25	6	5	5	3	1	2	5	4	0	2	2
Interest	1	1	1	1	1	1	1	2	2	2	3	3	3
Depreciation	6	6	7	8	8	8	9	10	10	10	17	17	17
Profit before tax	28	54	47	41	37	39	45	48	48	46	62	44	36
Tax %	13%	15%	19%	20%	21%	19%	19%	14%	25%	68%	29%	-3%	24%
Net Profit	25	46	38	33	30	32	37	41	36	14	44	46	27
EPS in Rs	2.08	3.86	3.14	2.77	2.51	2.69	3.11	3.50	3.03	1.22	3.72	3.88	2.32

Last Updated: May 11, 2024, 4:57 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 27, 2024, 12:34 am

Month	Dec 2013	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Mar 2020	Dec 2020	Dec 2021	Dec 2022	Dec 2023
Sales	596	648	605	588	593	700	809	809	881	1,156	1,516	1,685
Expenses	518	558	533	518	560	643	736	736	764	995	1,316	1,433
Operating Profit	78	91	73	71	33	57	73	73	116	161	200	252
OPM %	13%	14%	12%	12%	6%	8%	9%	9%	13%	14%	13%	15%
Other Income	4	34	70	17	16	19	15	15	11	42	10	12
Interest	1	1	1	1	0	0	2	2	6	5	5	9
Depreciation	10	11	14	12	13	14	15	15	26	28	35	54
Profit before tax	72	112	128	76	35	63	72	72	96	170	170	200
Tax %	27%	30%	23%	29%	36%	19%	19%	19%	15%	17%	18%	30%
Net Profit	53	78	98	54	23	51	58	58	82	141	140	140
EPS in Rs	4.16	6.13	7.71	4.33	1.82	4.12	4.83	4.86	6.84	11.96	11.81	11.84
Dividend Payout %	49%	95%	51%	0%	0%	14%	31%	0%	0%	48%	55%	57%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2020-2021
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:	27%
5 Years:	59%
3 Years:	51%
1 Year:	94%

Return on Equity
10 Years:	23%
5 Years:	25%
3 Years:	28%
Last Year:	24%

Last Updated: May 17, 2024, 7:03 pm

R Systems International Ltd Balance Sheet

Month	Dec 2012	Dec 2013	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Mar 2020	Dec 2020	Dec 2021	Dec 2022	Jun 2023
Equity Capital	12	13	13	13	12	12	12	12	12	12	12	12	12
Reserves	182	219	200	230	266	259	311	326		415	448	534	583
Borrowings	1	1	1	1	2	2	2	6		23	58	77	128
Other Liabilities	102	114	159	111	103	119	119	148		200	174	210	253
Total Liabilities	298	347	373	356	383	392	443	493		650	692	833	976
Fixed Assets	65	74	70	80	80	46	45	72		111	127	156	145
CWIP	1	1	0	0	3	0	2	2		0	0	3	1
Investments	0	1	2	41	26	22	20	34		13	13	14	0
Other Assets	231	271	302	235	274	323	377	384		526	552	661	830
Total Assets	298	347	373	356	383	392	443	493		650	692	833	976

Reserves and Borrowings Chart

R Systems International Ltd Cash Flow

Month	Dec 2013	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023
Cash from Operating Activity	48	72	45	44	37	31	64	125	87	96	211
Cash from Investing Activity	0	7	41	11	-58	-31	8	-32	19	-8	-223
Cash from Financing Activity	-21	-53	-113	-19	-1	-9	-46	10	-116	-86	-41
Net Cash Flow	27	26	-27	35	-22	-9	26	103	-9	2	-52

Free Cash Flow

Month	Dec 2013	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Mar 2020
Free Cash Flow	77.00	90.00	72.00	69.00	31.00	55.00	67.00	93.00	103.00	123.00	121.00	73.00

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

Month	Dec 2013	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023
Debtor Days	64	70	63	67	74	71	60	54	56	62	54
Inventory Days
Days Payable
Cash Conversion Cycle	64	70	63	67	74	71	60	54	56	62	54
Working Capital Days	24	-0	22	32	26	55	38	40	44	47	16
ROCE %	34%	40%	30%	27%	13%	21%	22%	26%	36%	31%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Promoters	51.58%	51.58%	51.67%	51.67%	51.67%	51.67%	51.67%	51.67%	51.93%	51.93%	51.93%	51.93%
FIIs	0.00%	0.65%	0.81%	0.51%	0.42%	0.42%	0.40%	0.25%	0.17%	0.19%	0.25%	0.61%
DIIs	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.71%	0.69%	0.78%	1.03%
Public	48.42%	47.77%	47.51%	47.82%	47.91%	47.91%	47.93%	48.08%	47.22%	47.20%	47.06%	46.45%
No. of Shareholders	15,015	22,719	28,691	34,950	36,092	35,200	29,954	30,097	27,863	28,584	29,341	30,437

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Dec 22	Dec 21	Dec 20	Dec 19	Dec 18
FaceValue	1.00	1.00	1.00	1.00	1.00
Basic EPS (Rs.)	11.81	11.85	6.87	4.82	4.14
Diluted EPS (Rs.)	11.81	11.85	6.87	4.82	4.14
Cash EPS (Rs.)	14.76	14.30	9.01	6.10	5.24
Book Value[Excl.RevalReserv]/Share (Rs.)	46.11	38.91	35.67	28.28	26.20
Book Value[Incl.RevalReserv]/Share (Rs.)	46.11	38.91	35.67	28.28	26.20
Revenue From Operations / Share (Rs.)	128.12	97.68	73.63	67.67	56.79
PBDIT / Share (Rs.)	17.75	17.13	10.85	7.39	6.21
PBIT / Share (Rs.)	14.80	14.79	8.71	6.15	5.11
PBT / Share (Rs.)	14.38	14.38	8.08	6.01	5.09
Net Profit / Share (Rs.)	11.81	11.95	6.87	4.86	4.14
NP After MI And SOA / Share (Rs.)	11.81	11.95	6.87	4.86	4.14
PBDIT Margin (%)	13.85	17.53	14.73	10.92	10.92
PBIT Margin (%)	11.54	15.14	11.82	9.08	8.99
PBT Margin (%)	11.22	14.71	10.97	8.88	8.95
Net Profit Margin (%)	9.21	12.23	9.33	7.18	7.29
NP After MI And SOA Margin (%)	9.21	12.23	9.33	7.18	7.29
Return on Networth / Equity (%)	25.60	30.72	19.26	17.18	15.80
Return on Capital Employeed (%)	27.56	33.09	20.84	19.91	18.74
Return On Assets (%)	16.76	20.42	12.65	11.79	11.51
Long Term Debt / Equity (X)	0.00	0.00	0.01	0.01	0.00
Total Debt / Equity (X)	0.00	0.00	0.01	0.01	0.00
Asset Turnover Ratio (%)	1.30	1.03	0.91	0.97	0.87
Current Ratio (X)	3.18	3.28	3.40	3.15	3.43
Quick Ratio (X)	3.18	3.28	3.40	3.15	3.43
Dividend Payout Ratio (NP) (%)	55.05	0.00	0.00	37.24	16.74
Dividend Payout Ratio (CP) (%)	44.02	0.00	0.00	29.65	13.23
Earning Retention Ratio (%)	44.95	0.00	0.00	62.76	83.26
Cash Earning Retention Ratio (%)	55.98	0.00	0.00	70.35	86.77
Interest Coverage Ratio (X)	42.88	41.26	22.90	56.48	288.66
Interest Coverage Ratio (Post Tax) (X)	29.52	29.79	15.83	38.14	193.62
Enterprise Value (Cr.)	2774.23	3611.84	1202.25	695.59	470.76
EV / Net Operating Revenue (X)	1.83	3.13	1.37	0.85	0.67
EV / EBITDA (X)	13.21	17.82	9.27	7.87	6.15
MarketCap / Net Operating Revenue (X)	1.98	3.32	1.64	1.03	0.86
Retention Ratios (%)	44.94	0.00	0.00	62.75	83.25
Price / BV (X)	5.50	8.34	3.39	2.48	1.87
Price / Net Operating Revenue (X)	1.98	3.32	1.64	1.03	0.86
EarningsYield	0.04	0.03	0.05	0.06	0.08

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹549.38

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: 13.98% compared to the current price ₹482

Intrinsic Value: ₹656.47

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: 36.20% compared to the current price ₹482

Last 5 Year EPS CAGR: 19.49%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a high average ROCE of 23.33%, which is a positive sign. The stock has a low average Working Capital Days of 28.67, which is a positive sign. The company has higher reserves (317.33 cr) compared to borrowings (25.33 cr), indicating strong financial stability. The company has shown consistent growth in sales (519.33 cr) and profit (105.50 cr) over the years.	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: 9.21%
  - 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: 27.56% (Industry Average ROCE: 7.14%)
  - 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%: 25.60% (Industry Average ROE: 4.24%)
  - 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): 29.52
  - 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: 3.18
  - 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: 43.3 (Industry average Stock P/E: 35.35)
  - 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: 0.00
  - 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

R Systems International Ltd. is a Public Limited Listed company incorporated on 14/05/1993 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1993PLC053579 and registration number is 053579. Currently Company is involved in the business activities of Computer programming, consultancy and related activities. Company’s Total Operating Revenue is Rs. 577.50 Cr. and Equity Capital is Rs. 11.83 Cr. for the Year ended 31/12/2021.

INDUSTRY	ADDRESS	CONTACT
IT Consulting & Software	GF-1-A, 6, Devika Tower, Nehru Place, New Delhi Delhi 110019	investors@rsystems.com http://www.rsystems.com

Management
Name	Position Held
Dr. Satinder Singh Rekhi	Managing Director & CEO
Lt. Gen. (Retd.) Baldev Singh	President & Senior Executive Director
Mr. Avirag Jain	Director & CTO
Mr. Aditya Wadhwa	Ind. Non-Executive Director
Mrs. Ruchica Gupta	Ind. Non-Executive Director
Mr. Kapil Dhameja	Ind. Non-Executive Director

R Systems International Ltd. Share Price Update
Share Price	Value
Today	₹476.65
Previous Day	₹483.70

FAQ

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

The latest fair value of R Systems International Ltd is 549.38.

What is the Market Cap of R Systems International Ltd?

The Market Cap of R Systems International Ltd is 5,700 Cr..

What is the current Stock Price of R Systems International Ltd as on 21 May 2024?

The current stock price of R Systems International Ltd as on 21 May 2024 is 482.

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 ₹599/241.

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

The Stock P/E of R Systems International Ltd is 43.3.

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 1.41 %.

What is the ROCE of R Systems International Ltd?

The ROCE of R Systems International Ltd is 26.0 %.

What is the ROE of R Systems International Ltd?

The ROE of R Systems International Ltd is 24.2 %.

What is the Face Value of R Systems International Ltd?

The Face Value of R Systems International Ltd is 1.00.