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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of RS Software (India) Ltd

About the Company - RS Software (India) Ltd

RS Software (India) Ltd. is a Public Limited Listed company incorporated on 02/12/1987 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L72200WB1987PLC043375 and registration number is 043375. Currently Company is involved in the business activities of Computer consultancy and computer facilities management activities. Company’s Total Operating Revenue is Rs. 27.51 Cr. and Equity Capital is Rs. 12.85 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareFMC FORTUNA, 1st Floor, Kolkata West Bengal 700020vijendras@rssoftware.co.in
http://www.rssoftware.com
Management
NamePosition Held
Mr. Raj JainChairman & Managing Director
Mr. R RamarajDirector
Mr. C S MohanDirector
Mr. Richard LaunderDirector
Mrs. Sarita JainDirector

RS Software (India) Ltd. Share Price Update

Share PriceValue
Today₹171.70
Previous Day₹168.34

Basic Stock Data of RS Software (India) Ltd

Market Cap 348 Cr.
Current Price 135
High / Low136/21.1
Stock P/E28.7
Book Value 13.2
Dividend Yield0.00 %
ROCE24.4 %
ROE24.8 %
Face Value 5.00

Data Source: screener.in

Competitors of RS Software (India) Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sonata Software Ltd 23,908 Cr. 853888/36055.5 51.40.93 %39.1 %37.7 % 1.00
Megasoft Ltd 741 Cr. 100106/19.9 26.20.00 %7.72 %4.17 % 10.0
ABM Knowledgeware Ltd 220 Cr. 110148/73.018.0 1071.13 %8.33 %6.29 % 5.00
Tech Mahindra Ltd 1,25,748 Cr. 1,2881,416/98144.7 2712.50 %22.1 %17.6 % 5.00
FCS Software Solutions Ltd 882 Cr. 5.166.69/1.84573 2.090.00 %0.96 %0.35 % 1.00
Industry Average30,299.80 Cr471.23138.2491.540.91%15.64%13.22%4.40

RS Software (India) Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales9.217.538.089.637.326.244.334.794.728.3712.2511.0810.94
Expenses13.4412.0012.1211.9810.3210.287.628.058.928.229.988.539.94
Operating Profit-4.23-4.47-4.04-2.35-3.00-4.04-3.29-3.26-4.200.152.272.551.00
OPM %-45.93%-59.36%-50.00%-24.40%-40.98%-64.74%-75.98%-68.06%-88.98%1.79%18.53%23.01%9.14%
Other Income0.450.330.442.721.540.110.430.110.190.090.250.052.08
Interest0.010.020.120.000.000.000.000.000.000.000.220.050.05
Depreciation1.221.211.171.141.071.030.950.890.890.921.361.141.15
Profit before tax-5.01-5.37-4.89-0.77-2.53-4.96-3.81-4.04-4.90-0.680.941.411.88
Tax %-0.20%0.00%0.00%0.00%0.00%0.00%-98.43%0.00%0.00%0.00%0.00%0.00%0.00%
Net Profit-5.02-5.37-4.88-0.77-2.53-4.96-7.57-4.05-4.90-0.680.941.411.88
EPS in Rs-1.84-1.99-1.80-0.21-0.93-1.87-2.88-1.52-1.84-0.210.400.580.76

RS Software (India) Ltd Quarterly Chart

RS Software (India) Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales264.03318.16381.88376.42190.0076.1363.4365.3960.2835.4627.5230.1342.64
Expenses225.35268.53305.35283.04186.45111.11108.36102.5296.9253.2139.6135.0536.67
Operating Profit38.6849.6376.5393.383.55-34.98-44.93-37.13-36.64-17.75-12.09-4.925.97
OPM %14.65%15.60%20.04%24.81%1.87%-45.95%-70.83%-56.78%-60.78%-50.06%-43.93%-16.33%14.00%
Other Income0.954.417.2911.6215.4812.478.556.4412.331.934.290.642.47
Interest0.450.940.880.380.470.170.260.5716.620.520.080.340.32
Depreciation4.183.475.485.554.173.982.243.304.124.834.204.064.57
Profit before tax35.0049.6377.4699.0714.39-26.66-38.88-34.56-45.05-21.17-12.08-8.683.55
Tax %21.63%23.59%30.83%31.98%26.27%36.68%30.40%18.49%-64.35%-0.05%-31.04%0.00%
Net Profit27.4337.9353.5867.3910.61-16.60-26.44-28.16-74.03-21.19-15.84-8.693.55
EPS in Rs11.9815.6720.9326.224.13-6.35-10.04-10.56-27.99-7.80-5.89-3.171.53
Dividend Payout %12.54%11.17%14.33%12.38%24.22%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

RS Software (India) Ltd Profit & Loss Yearly Chart

RS Software (India) Ltd Growth

Compounded Sales Growth
10 Years:-21%
5 Years:-14%
3 Years:-21%
TTM:141%
Compounded Profit Growth
10 Years:%
5 Years:12%
3 Years:24%
TTM:173%
Stock Price CAGR
10 Years:7%
5 Years:44%
3 Years:91%
1 Year:577%
Return on Equity
10 Years:-6%
5 Years:-34%
3 Years:-30%
Last Year:-25%

RS Software (India) Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital11.4712.1112.8012.8412.8512.8512.8512.8512.8512.8512.8512.8512.85
Reserves77.57111.86163.02211.12216.43200.77175.05146.2864.3142.8526.4017.6321.04
Borrowings0.000.000.000.000.001.260.000.000.007.800.092.412.01
Other Liabilities22.1218.7925.5120.0325.6216.5015.5616.5811.398.068.5110.3312.68
Total Liabilities111.16142.76201.33243.99254.90231.38203.46175.7188.5571.5647.8543.2248.58
Fixed Assets11.8212.1617.8112.018.637.9413.2311.8319.9815.2010.379.558.63
CWIP0.250.370.740.740.796.460.206.240.000.000.000.000.00
Investments33.2229.6854.1765.7770.38100.6963.8645.3617.544.548.161.420.38
Other Assets65.87100.55128.61165.47175.10116.29126.17112.2851.0351.8229.3232.2539.57
Total Assets111.16142.76201.33243.99254.90231.38203.46175.7188.5571.5647.8543.2248.58

RS Software (India) Ltd 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

RS Software (India) Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days37.6443.5744.5345.5734.2567.3657.8334.3334.57105.5151.2010.66
Inventory Days0.000.000.000.00
Days Payable
Cash Conversion Cycle37.6443.5744.5345.5734.2567.3657.8334.3334.57105.5151.2010.66
Working Capital Days17.9231.9331.0744.0119.56102.4689.25102.26133.82249.82100.40134.10
ROCE %51.38%47.24%51.04%48.70%3.32%-14.85%-21.82%-21.28%-27.01%-30.89%-22.55%-24.36%

RS Software (India) Ltd Financial Efficiency Indicators Chart

RS Software (India) Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
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%1.95%1.95%2.22%2.21%1.95%1.95%1.95%1.95%1.95%1.95%
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%57.32%57.32%57.04%57.06%57.32%57.33%57.31%57.31%57.33%57.31%
No. of Shareholders21,97624,41625,65725,28726,52127,83727,81127,21226,85626,42725,37723,811

RS Software (India) Ltd Shareholding Pattern Chart

No. of RS Software (India) Ltd Shareholders

This stock is not held by any mutual fund

RS Software (India) Ltd ROCE Trend

RS Software (India) Ltd EPS Trend

RS Software (India) Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)-3.19-6.40-8.24-28.13-10.57
Diluted EPS (Rs.)-3.19-6.40-8.24-28.13-10.57
Cash EPS (Rs.)-1.80-4.52-6.36-27.20-9.28
Book Value[Excl.RevalReserv]/Share (Rs.)11.9415.4522.1330.5563.24
Book Value[Incl.RevalReserv]/Share (Rs.)11.9415.4522.1330.5563.24
Revenue From Operations / Share (Rs.)11.7210.7113.7923.4525.44
PBDIT / Share (Rs.)-1.71-3.06-6.25-15.75-11.66
PBIT / Share (Rs.)-3.29-4.70-8.13-17.35-12.94
PBT / Share (Rs.)-3.38-4.70-8.24-17.52-13.05
Net Profit / Share (Rs.)-3.38-6.16-8.24-28.80-10.57
NP After MI And SOA / Share (Rs.)-3.17-5.88-7.80-27.99-10.18
PBDIT Margin (%)-14.61-28.62-45.32-67.15-45.83
PBIT Margin (%)-28.08-43.88-58.95-73.98-50.88
PBT Margin (%)-28.82-43.88-59.71-74.72-51.31
Net Profit Margin (%)-28.82-57.52-59.73-122.82-41.53
NP After MI And SOA Margin (%)-27.03-54.95-56.53-119.38-40.00
Return on Networth / Equity (%)-26.72-38.53-35.98-93.26-16.10
Return on Capital Employeed (%)-24.77-29.65-31.53-55.28-20.15
Return On Assets (%)-18.85-31.61-28.01-81.26-14.94
Long Term Debt / Equity (X)0.000.000.140.000.00
Total Debt / Equity (X)0.000.000.140.000.00
Asset Turnover Ratio (%)0.490.370.380.420.32
Current Ratio (X)3.194.668.677.609.06
Quick Ratio (X)3.194.668.677.609.06
Interest Coverage Ratio (X)-19.77-15755.60-59.52-91.14-105.83
Interest Coverage Ratio (Post Tax) (X)-37.99-31665.60-77.45-165.68-94.92
Enterprise Value (Cr.)49.8469.6959.8817.4251.23
EV / Net Operating Revenue (X)1.652.531.690.280.78
EV / EBITDA (X)-11.32-8.85-3.73-0.43-1.71
MarketCap / Net Operating Revenue (X)1.892.891.760.471.11
Price / BV (X)1.872.021.120.360.44
Price / Net Operating Revenue (X)1.892.891.760.471.11
EarningsYield-0.14-0.19-0.32-2.53-0.36

RS Software (India) Ltd Profitability Ratios (%)

RS Software (India) Ltd Liquidity Ratios

RS Software (India) Ltd Liquidity Ratios (%)

RS Software (India) Ltd Interest Coverage Ratios (X)

RS Software (India) Ltd Valuation Ratios

Fair Value / Intrinsic Value of RS Software (India) Ltd

Fair Value: ₹95.83

The stock is overvalued by 29.01% compared to the current price ₹135

*Investments are subject to market risks

Strength and Weakness of RS Software (India) Ltd

StrengthWeakness
  1. The company has higher reserves (113.41 cr) compared to borrowings (1.04 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (148.57 cr) and profit (7.08 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of -9.28 and average Dividend Yield of -51.15%.
  2. The stock has a low average ROCE of 3.24%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 88.05, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 47.25, which may not be favorable.

Should I Buy RS Software (India) Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in RS Software (India) Ltd:
    1. Net Profit Margin: -28.82%
      • 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: -24.77% (Industry Average ROCE: 6.02%)
      • 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. Interest Coverage Ratio (Post Tax): -37.99
      • 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.
    4. Quick Ratio: 3.19
      • 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.
    5. ✗ Stock P/E: 28.7 (Industry average Stock P/E: 16.6)
      • 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.
    6. ✓ 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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