4X Multibagger Stocks as Value Pick · R S Software · Oct15

R S Software

Value Pick : Summary

About Business :

RSSL was set up as a private limited company by Shri R. R. Jain of Kolkata in December, 1987. The company is primarily engaged in software development, maintenance, testing and software project management under client server and web based technologies. Shri Jain is a first generation entrepreneur, who has, to his credit, more than two decades of working experience in software & electronic payment services industry in USA.

SWOT Analysis :

Strengths

  • R S Software has MOAT in its exclusive focus in the domain area of electronic payments industry.
  • Long and satisfactory track record in providing maintenance services to e-payment industry where credibility & reliability is everything.
  • Just bagged a long term sarkari contract for India’s digital payment infrastructure which will do wonders in this era of smart phone revolution in India.

weaknesses

  • The dominance of one client ( VISA ) in R S Software's turnover.
  • Focussed on only one specific industry of payment gateway where many start-ups have entered as new players in recent years.
  • R S Software's exposure to foreign exchange fluctuation risk.

opportunities

  • R S Software is constantly looking to expand in four specific areas of A: Digital payments; B: Testing; C: Analytics; D: Building of core payment infrastructure as pointed out by the Director recently
  • Cash rich R S Software is looking for acquisition of companies in US which fits the bill for its plan of expansion.

threats

  • Rumours of VISA dropping some of the business with R S Software.
  • Intense competition in recent years.

Business Verdict :

R S Software has shown consistent increase of turnover over last 10 years with very healthy profit margins.It has saved lot of cash on its balance sheet which is enough for its wither & to get business growing.

With rumours of VISA dropping R S Software has triggered in its steep fall of approximately 70% from its peak but results contradicting these rumours partially. R S Software is a Multibagger stock in India available undervalued which is like an opportunity to invest in Mobile revolution in India & around the world fueled by iOS & Android Machines.

Official Website

Quality Analysis
Value Matrix

What are Value Picks ?

Value picks are stocks of companies that are believed to be undervalued at NSE or BSE. It is an outcome of huge sattebaaji directed by Stock brokers in that stock making Markets overreact to good and bad news, resulting in stock price movements that do not correspond with the company's long-term business or fundamentals.

You can learn Value Pick Multibagger Stock course & start your own research in depth. After completing the Value Pick Multibagger Stock course You have to apply methods & circle of competence on your researched Value Picks.

Is Value Pick Tax Free ?

YES, Profit arising from holding Equity shares for 1 Year or more is covered under Long Term Capital Gain ( LTCG) as per Income Tax Act 1961 ( Section 54 )

regards,

jasmeet singh

Founder & Investor

SEBI Registered (Under Process)

Jasmeet Singh

About me :

I am passionate about 3 things in my life Financial System, Fitness & Photography

I got introduced to Financial system through Forex Trading back in 2007 during my 3rd Year of Engineering & It was too complex yet magnificent. Officially I entered Indian Stock Market in early 2008 at the very beginning of Global Financial Crisis, but what the hell did I know for me it was the last semester & time to get serious about my passion ie, Counter Strike

Legends :

RoCE : Return on Capital Employed (Effective)

PAT(Avg.) : Net Profit after tax ( Average )

CMP : Current Market Price

MoS : Margin of Safety

DISCLAIMER

This analysis is my personal opinion shared on public media (Blog) & is not a recommendation of any sort in any manner. I am currently not registered with SEBI in any capacity but in process of being a registered Research Analyst with SEBI. I have no financial interest in aforesaid company & don't hold any stock on the date of writing this post.