Why is R S Software (India) Ltd ?
1
Weak Long Term Fundamental Strength with a 19.66% CAGR growth in Operating Profits over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -10.16
2
The company has declared negative results in Dec'2024 after 7 consecutive positive quarters
- NET SALES(Q) At Rs 12.68 cr has Fallen at -31.0 %
- PBT LESS OI(Q) At Rs 2.02 cr has Fallen at -64.2 %
- PAT(Q) At Rs 1.60 cr has Fallen at -73.6 %
3
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 07-Apr-25 and has generated -4.84% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
4
Underperformed the market in the last 1 year
- Even though the market (BSE 500) generated negative returns of -0.93% in the last 1 year, its fall in the stock was much higher with a return of -76.68%
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Software )
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is R S Software (I) for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
R S Software (I)
-76.68%
-1.44
53.21%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
0.10%
EBIT Growth (5y)
19.66%
EBIT to Interest (avg)
-10.16
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.19
Tax Ratio
0
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
3.37%
ROCE (avg)
49.94%
ROE (avg)
13.25%
Valuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
26
Price to Book Value
2.80
EV to EBIT
9.29
EV to EBITDA
7.27
EV to Capital Employed
3.47
EV to Sales
2.29
PEG Ratio
0.21
Dividend Yield
0.38%
ROCE (Latest)
37.30%
ROE (Latest)
29.73%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
Bullish
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
Mildly Bearish
Technical Movement
1What is working for the Company
NO KEY POSITIVE TRIGGERS
-16What is not working for the Company
NET SALES(Q)
At Rs 12.68 cr has Fallen at -31.0 %
PBT LESS OI(Q)
At Rs 2.02 cr has Fallen at -64.2 %
PAT(Q)
At Rs 1.60 cr has Fallen at -73.6 %
PBDIT(Q)
Lowest at Rs 2.78 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 21.92%
EPS(Q)
Lowest at Rs 0.62
Loading Valuation Snapshot...
Here's what is not working for R S Software (I)
Net Sales - Quarterly
At Rs 12.68 cr has Fallen at -31.0 %
over average Net Sales of the previous four quarters of Rs 18.37 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 2.02 cr has Fallen at -64.2 %
over average PBT of the previous four quarters of Rs 5.64 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 1.60 cr has Fallen at -73.6 %
over average PAT of the previous four quarters of Rs 6.06 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Net Sales - Quarterly
Lowest at Rs 12.68 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 2.78 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 21.92%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 2.02 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 0.62
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)