Buy RS Software; target Rs 180: Sunidhi Securities
Sunidhi Securities is bullish on RS Software India (RSSIL) and has recommended buy rating on the stock with a price target of Rs 180 in its October 21, 2013 research report.
October 22, 2013 / 15:07 IST
Sunidhi Securities' report on RS Software (India) (RSSIL)
"RSSIL continues to put significant thrust on innovations and in building competencies through the Payments Lab and School of Payments. RSSIL has made fresh hiring of 53 candidates in Q2FY14 in order to ramp up its delivery systems. It is confident that given the improving market conditions and the potential growth in the electronic payments industry, RSSIL will consistently tread a high growth trajectory. 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 in fiscal 2012-13 and reinforced its growth journey.""RSSIL has built solutions for the introduction of new standards such as EMV (Europay, MasterCard and Visa) and emerging payment areas like mobile and contactless payments, while enhancing the ability of its clients to manage their legacy systems. The domain focus makes RSSIL a partner of choice for its customers and an employer of choice for its employees. 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 RSSIL's commitment to ensure that this time around, it is fully capitalizing 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 Rs 148, the share is trading at a P/E of 4.3x on FY14E and 3.7x on FY15E. We reiterate BUY with an increased target price of Rs 180 in the medium termDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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