RS Software (India) Ltd.
BSE Code/ NSE: 517447/ RSSOFTWARE
Face Value: Rs 5
CMP: Rs 29
52 Weeks H/L (Rs): 71.30/25
Market Cap: Rs (crore): 77
Promoter’s Holding: 40.46%
No light seems to flicker in near future
RS Software (India) Limited provides software solutions to the electronic payment industry in India, the United Sates, and the United Kingdom. The company engages in the development, testing, and maintenance of software products. Its solutions cover digital payments, data analytics, merchant acquiring, security and compliance, QA and testing, and payment processing. The company serves financial institutions, banks, networks/associations, processors, digital merchants, and retailers.
Once upon a time this stock was darling stock for traders and investors. Its price went up to Rs415 level in FY15. Now it is available near Rs30. Many investors feel that it is throw away price but as per financial analysis it is not cheap stock even at this price.
Just look at its financial. It has an equity base of Rs12.85 crore. Reserve is around Rs175 crore which was around Rs216.43 crore in FY16. Current market cap is above Rs77 crore.
The Company is in digital payment industry. After demonetization digital payment mode increased in India but this Company had posted very poor performance in last three years. In fact Company has posted losses in last two financial years and in first nine months of this financial year. Company has informed about bright future in its annual report but performance is telling other story. At one stage Dolly Khanna, other HNIs and some Mutual Funds and FIIs were investors but now we don’t see any bright future for this Company. So don’t try to bottom fishing in this counter. Stock may fly with some rumors but that will be an exit opportunity only.
