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

Fundamental Analysis of RS Software (India) Ltd

Basic Stock Data

Last Updated: June 19, 2024, 10:19 am

Market Cap 517 Cr.
Current Price 201
High / Low299/34.0
Stock P/E28.5
Book Value 18.9
Dividend Yield0.00 %
ROCE44.3 %
ROE45.8 %
Face Value 5.00
PEG Ratio0.27

Competitors of RS Software (India) Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
R Systems International Ltd 5,837 Cr. 493599/37144.3 51.71.37 %26.1 %24.3 % 1.00
Ramco Systems Ltd 1,164 Cr. 328450/245 87.90.00 %46.5 %57.2 % 10.0
Rolta India Ltd 69.3 Cr. 4.187.45/1.65 5470.00 %6.48 %% 10.0
63 Moons Technologies Ltd 1,707 Cr. 370691/1678.14 7260.54 %6.70 %6.49 % 2.00
Bharatiya Global Infomedia Ltd 4.58 Cr. 2.894.90/1.95 55.00.00 %1.86 %2.10 % 10.0
Industry Average37,468.98 Cr719.9864.02126.050.73%20.03%19.53%6.81

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales8.089.637.326.244.334.794.728.3712.2511.0810.9419.3018.23
Expenses12.1211.9810.3210.287.628.058.928.229.988.539.949.8912.43
Operating Profit-4.04-2.35-3.00-4.04-3.29-3.26-4.200.152.272.551.009.415.80
OPM %-50.00%-24.40%-40.98%-64.74%-75.98%-68.06%-88.98%1.79%18.53%23.01%9.14%48.76%31.82%
Other Income0.442.721.540.110.430.110.190.090.250.052.080.182.14
Interest0.120.000.000.000.000.000.000.000.220.050.050.040.04
Depreciation1.171.141.071.030.950.890.890.921.361.141.151.191.20
Profit before tax-4.89-0.77-2.53-4.96-3.81-4.04-4.90-0.680.941.411.888.366.70
Tax %0.00%0.00%0.00%0.00%-98.43%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Net Profit-4.88-0.77-2.53-4.96-7.57-4.05-4.90-0.680.941.411.888.376.71
EPS in Rs-1.80-0.21-0.93-1.87-2.88-1.52-1.84-0.210.400.580.763.062.64

Last Updated: June 9, 2024, 2:25 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 26, 2024, 9:56 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales3183823761907663656035283060
Expenses2693052831861111081039753403541
Operating Profit5077934-35-45-37-37-18-12-519
OPM %16%20%25%2%-46%-71%-57%-61%-50%-44%-16%32%
Other Income4712151296122414
Interest1100001171000
Depreciation356442345445
Profit before tax50779914-27-39-35-45-21-12-918
Tax %24%31%32%26%37%30%18%-64%-0%-31%0%0%
Net Profit38546711-17-26-28-74-21-16-918
EPS in Rs15.6720.9326.224.13-6.35-10.04-10.56-27.99-7.80-5.89-3.177.04
Dividend Payout %11%14%12%24%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)42.11%24.07%-83.58%-254.55%-52.94%-7.69%-164.29%71.62%23.81%43.75%300.00%
Change in YoY Net Profit Growth (%)0.00%-18.03%-107.66%-170.96%201.60%45.25%-156.59%235.91%-47.81%19.94%256.25%

Growth

Compounded Sales Growth
10 Years:-17%
5 Years:-2%
3 Years:19%
TTM:98%
Compounded Profit Growth
10 Years:-10%
5 Years:21%
3 Years:42%
TTM:309%
Stock Price CAGR
10 Years:5%
5 Years:51%
3 Years:68%
1 Year:387%
Return on Equity
10 Years:-9%
5 Years:-34%
3 Years:-4%
Last Year:46%

Last Updated: June 16, 2024, 10:02 pm

Balance Sheet

Last Updated: June 1, 2024, 11:16 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital121313131313131313131313
Reserves1121632112162011751466443261836
Borrowings000010008022
Other Liabilities1926202616161711891018
Total Liabilities1432012442552312031768972484368
Fixed Assets1218129813122015101010
CWIP011160600000
Investments305466701016445185810
Other Assets1011291651751161261125152293258
Total Assets1432012442552312031768972484368

Reserves and Borrowings Chart

RS Software (India) Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 418536119-39-37-30-41-159-10
Cash from Investing Activity -342-33-1010-2343173415-26
Cash from Financing Activity -1-4-6-11-4-3-0-1-3-1-80
Net Cash Flow56144024-647-14-9-1-1-3

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow50.0077.0093.004.00-36.00-45.00-37.00-37.00-26.00-12.00-7.0017.00

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

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days4445463467583435106511169
Inventory Days0000
Days Payable
Cash Conversion Cycle4445463467583435106511169
Working Capital Days323144201028910213425010013494
ROCE %47%51%49%3%-15%-22%-21%-27%-31%-23%-24%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters40.67%40.67%40.67%40.67%40.67%40.67%40.67%40.67%40.67%40.67%40.67%40.67%
FIIs1.95%1.95%2.22%2.21%1.95%1.95%1.95%1.95%1.95%1.95%1.95%0.99%
DIIs0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%
Government0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%
Public57.32%57.32%57.04%57.06%57.32%57.33%57.31%57.31%57.33%57.31%57.31%58.28%
No. of Shareholders25,65725,28726,52127,83727,81127,21226,85626,42725,37723,81122,93321,555

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)7.18-3.19-6.40-8.24-28.13
Diluted EPS (Rs.)7.18-3.19-6.40-8.24-28.13
Cash EPS (Rs.)8.96-1.80-4.52-6.36-27.20
Book Value[Excl.RevalReserv]/Share (Rs.)19.1011.9415.4522.1330.55
Book Value[Incl.RevalReserv]/Share (Rs.)19.1011.9415.4522.1330.55
Revenue From Operations / Share (Rs.)23.1611.7210.7113.7923.45
PBDIT / Share (Rs.)9.03-1.71-3.06-6.25-15.75
PBIT / Share (Rs.)7.21-3.29-4.70-8.13-17.35
PBT / Share (Rs.)7.14-3.38-4.70-8.24-17.52
Net Profit / Share (Rs.)7.14-3.38-6.16-8.24-28.80
NP After MI And SOA / Share (Rs.)7.04-3.17-5.88-7.80-27.99
PBDIT Margin (%)38.98-14.61-28.62-45.32-67.15
PBIT Margin (%)31.13-28.08-43.88-58.95-73.98
PBT Margin (%)30.82-28.82-43.88-59.71-74.72
Net Profit Margin (%)30.82-28.82-57.52-59.73-122.82
NP After MI And SOA Margin (%)30.41-27.03-54.95-56.53-119.38
Return on Networth / Equity (%)37.22-26.72-38.53-35.98-93.26
Return on Capital Employeed (%)35.68-24.77-29.65-31.53-55.28
Return On Assets (%)26.50-18.85-31.61-28.01-81.26
Long Term Debt / Equity (X)0.000.000.000.140.00
Total Debt / Equity (X)0.000.000.000.140.00
Asset Turnover Ratio (%)1.070.490.370.380.42
Current Ratio (X)3.343.194.668.677.60
Quick Ratio (X)3.343.194.668.677.60
Interest Coverage Ratio (X)125.61-19.77-15755.60-59.52-91.14
Interest Coverage Ratio (Post Tax) (X)100.32-37.99-31665.60-77.45-165.68
Enterprise Value (Cr.)472.2749.8469.6959.8817.42
EV / Net Operating Revenue (X)7.931.652.531.690.28
EV / EBITDA (X)20.35-11.32-8.85-3.73-0.43
MarketCap / Net Operating Revenue (X)8.311.892.891.760.47
Price / BV (X)10.171.872.021.120.36
Price / Net Operating Revenue (X)8.311.892.891.760.47
EarningsYield0.03-0.14-0.19-0.32-2.53

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 251.64

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: 25.19% compared to the current price 201

Intrinsic Value: 515.35

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: 156.39% compared to the current price ₹201

Last 5 Year EPS CAGR: 104.80%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (117.58 cr) compared to borrowings (1.08 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (140.25 cr) and profit (5.83 cr) over the years.
  1. The stock has a low average ROCE of -1.08%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 94.33, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 50.00, 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 RS Software (India) Ltd:
    1. Net Profit Margin: 30.82%
      • 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: 35.68% (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%: 37.22% (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): 100.32
      • 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: 3.34
      • 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: 28.5 (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: 0.00
      • 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

No data availabale for About the Company
INDUSTRYADDRESSCONTACT
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Management Data not Available

FAQ

What is the latest fair value of RS Software (India) Ltd?

The latest fair value of RS Software (India) Ltd is ₹251.64.

What is the Market Cap of RS Software (India) Ltd?

The Market Cap of RS Software (India) Ltd is 517 Cr..

What is the current Stock Price of RS Software (India) Ltd as on 19 June 2024?

The current stock price of RS Software (India) Ltd as on 19 June 2024 is ₹201.

What is the High / Low of RS Software (India) Ltd stocks in FY 2024?

In FY 2024, the High / Low of RS Software (India) Ltd stocks is 299/34.0.

What is the Stock P/E of RS Software (India) Ltd?

The Stock P/E of RS Software (India) Ltd is 28.5.

What is the Book Value of RS Software (India) Ltd?

The Book Value of RS Software (India) Ltd is 18.9.

What is the Dividend Yield of RS Software (India) Ltd?

The Dividend Yield of RS Software (India) Ltd is 0.00 %.

What is the ROCE of RS Software (India) Ltd?

The ROCE of RS Software (India) Ltd is 44.3 %.

What is the ROE of RS Software (India) Ltd?

The ROE of RS Software (India) Ltd is 45.8 %.

What is the Face Value of RS Software (India) Ltd?

The Face Value of RS Software (India) Ltd is 5.00.

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 RS Software (India) 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