RS Software has target of Rs 325: PN Vijay

RS Software has target of Rs 325, says PN Vijay, Portfolio Manager.

Vijay told CNBC-TV18, "RS Software is a Kolkata based midcap IT company. It works in a very interesting space. It works in an enterprise space where it provides fraud detection processes and payment processes to the industry. Its main clients are the credit card companies like Visa, MasterCard, American Express and others. It has almost got a monopoly in that market."
He further added, "With the increasing use of credit and debit cards and internet based commerce, they are in a winning streak and they should have huge earnings growth in years to come. They reported top-line growth of about 40 percent for the year as a whole 2011-12. This growth has only accelerated in Q1. I expect this growth to continue. They may have an earnings growth of about 40-45 percent in this financial year."
"The stock trades around Rs 175. On a trailing 12-month basis, it is about 6.5-7 multiplier. When you compare to the earnings growth, it is very attractive. It has more than doubled in the last six-eight months. So, one has to watch out for some profit taking, though it is very attractively priced. Apart from that, I don't see any great business risks in this stock. I give it a target of about Rs 325 in the next one year."