R Systems International Ltd (RSYSTEMS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Silver Touch

Network People

BLS E-Services

Capillary Tech.

Sasken Technol.

eMudhra

Zaggle Prepaid

R Systems Intl.

Saksoft

63 Moons Tech.

Aurionpro Sol.

Why is R Systems International Ltd ?

High Management Efficiency with a high ROE of 24.31%

Company has a Debt to Equity ratio (avg) of 0.01 times

Flat results in Jun 26

INTEREST(Latest six months) At Rs 19.07 cr has Grown at 80.93%
DPR(Y) Lowest at 38.15%

With ROE of 19.3, it has a Attractive valuation with a 2.7 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -41.28%, its profits have risen by 9.9% ; the PEG ratio of the company is 1.4

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -0.72% over the previous quarter and collectively hold 10.36% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -41.28% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to R Systems Intl. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is R Systems Intl. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

R Systems Intl.

-41.28%

-0.89

46.27%

Sensex

-1.65%

-0.12

13.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.82%

EBIT Growth (5y)

21.04%

EBIT to Interest (avg)

24.03

Debt to EBITDA (avg)

0.56

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

2.23

Tax Ratio

28.46%

Dividend Payout Ratio

38.15%

Pledged Shares

Institutional Holding

10.36%

ROCE (avg)

39.91%

ROE (avg)

24.31%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.68

EV to EBIT

9.92

EV to EBITDA

7.84

EV to Capital Employed

2.63

EV to Sales

1.34

PEG Ratio

1.42

Dividend Yield

2.41%

ROCE (Latest)

26.50%

ROE (Latest)

19.33%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

NET SALES(Q)

Highest at Rs 601.70 cr

PBDIT(Q)

Highest at Rs 110.65 cr.

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 333.97 cr

OPERATING PROFIT TO NET SALES(Q)

Highest at 18.39%

PBT LESS OI(Q)

Highest at Rs 79.14 cr.

-9What is not working for the Company

INTEREST(Latest six months)

At Rs 19.07 cr has Grown at 80.93%

DPR(Y)

Lowest at 38.15%

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Here's what is working for R Systems Intl.

Net Sales - Quarterly

Highest at Rs 601.70 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 110.65 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 18.39%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 79.14 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 79.14 cr has Grown at 29.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 60.98 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 333.97 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for R Systems Intl.

Interest - Latest six months

At Rs 19.07 cr has Grown at 80.93%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Dividend Payout Ratio (DPR) - Annually

Lowest at 38.15%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)