Buy RS Software; target of Rs 145: Sunidhi Securities

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26 Aug, 2025 12:21

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Sunidhi Securities is bullish on RS Software (India) and has recommended buy rating on the stock with a target of Rs 145 in its July 17, 2012 research report.

“RS Software (India) (RSSIL) was incorporated as a private limited company on December 2, 1987 and was converted into a public limited company on February 5 1992. Over the years, RSSIL has grown with global leaders in the electronic payments industry backed by strong application management fundamentals that continue to power its core execution engine. RS Software’s offices are located in the US, UK, Singapore and India, employing over 900 professionals. Some of the clients RSSIL serve are Visa, Visa EU, Visa CEMEA, Maclane, Pemco, Vignon.”

“During FY12, net profit rose 30% to Rs29 crore on 33% higher sales of Rs264 crore. EPS stood at Rs25.1. A dividend of 30% was paid. During Q1FY13, net profit has shot up by a whopping 92% to Rs9.6 crore on 42% higher revenue of Rs80.0 crore. OPM and NPM stood at 16.6% and 12% respectively. Q1FY13 EPS stands at Rs8.3.”

“The cornerstone of RS Software’s value proposition is its understanding of the payment transaction’s entire life cycle and a unique methodology customized for managing software applications for the electronic payment industry in the areas of development, maintenance, migration and support. RSSIL is one of global leaders in providing technology solutions to the electronic payments industry from India and this explains why it has outperformed the Indian software export industry growth by a factor of 1.5x in fiscal 2011-12 and reinforced its growth journey.  RSSIL is building a robust global sales engine that complements the high priority accorded to the company's dominant customers and leveraging at the same time unusual growth potential. Longer term operational and strategic planning is being put in place. The credible performance has only reinforced the company's commitment to ensure that this time around, the company is fully prepared to capitalize on the next wave of growth for the Indian companies, with Indian IT industry expected to grow 3 times in the next 10 years. This coincides with the inflexion point for growth in the payments industry.”

“At the CMP of Rs104, the share is trading at a P/E of 3.1x on FY13E and 2.5x on FY143E. We recommend BUY with a target of Rs145 (at a P/E of 4.4 on FY13E) in the medium term,” says Sunidhi Securities research report.

FIIs holding more than 30% in Indian cos

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