Monday, December 29, 2014

R S Software : A value pick and get rich Indian stock



R  S Software - an Indian multi bagger stock
Price: Rs 551.60 ( 29th Dec 2014 )      Target: 3 bagger by 2017

Area of operation: Building Software for the e-Payment industry. Vast potential to scale up
Look at the impeccable track record in the past.



Return on Equity ( 2013 – 14 ) :   36.40 %
Return on Capital employed ( 2013 – 14 ) : 53.4%

Sales ( CAGR last 3 years ): 23.2 %            
Net Profit Growth ( CAGR last 3 years ): 36.40 %

Net Working Capital Cycle (13 – 14 ) : 30 days
Operating cash flow ( last 4 years ): 101 Cr

EPS CAGR Growth ( last 4 years ): 36.40 %

EPS ( TTM ): 48      Current P/E: 11.47
MCap to Sales ( TTM ): 2 Times
MCap to Operating Profit ( TTM ): 7.7 Times


A steady growth company in the sunrise sector with its market cap at only 7.7 times its operating profit. With healthy RoE and RoCE and good cash flows. A take over target by any of the IT major is a possibility. Grab it

Disclaimer: I will have a vested interest in the stock

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