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INVESTMENT INSIGHTS

Check Before You Invest : RS Software (India) Ltd

BSE: 517447 NSE: RSSOFTWARE ISIN: INE165B01029
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does RS Software (India) Ltd belong to?
RS Software (India) Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is RS Software (India) Ltd a good quality company?
RS Software (India) Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is RS Software (India) Ltd undervalued or overvalued?
RS Software (India) Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is RS Software (India) Ltd a good buy now?
RS Software (India) Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of RS Software (India) Ltd?
RS Software (India) Ltd revenue growth is -3.7% for FY-2025 , which is below its 5 year CAGR of -0.9% , indicating slower growth.
Q.2 Gross Profit margin of RS Software (India) Ltd?
RS Software (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.7% for FY-2025 , which is above its 5 year median of -3.4% , indicating increasing margins.
Q.3 Operating Profit Margin of RS Software (India) Ltd?
RS Software (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.62% for FY-2025 , which is above its 5 year median of -5.32% indicating increasing margins.
Q.4 Net Profit Margin of RS Software (India) Ltd?
RS Software (India) Ltd Net Profit Margin is 12.46% for FY-2025 , is above with its 5 year median of -13.5%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 18.7 -3.4
Operating Profit Margin 17.62 -5.32
Net Profit Margin 12.46 -13.5
Q.5 Return on Asset of RS Software (India) Ltd?
RS Software (India) Ltd Return on Asset is 7.55%, which is above its 5 year historical median of -5.45%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of RS Software (India) Ltd?
RS Software (India) Ltd Return on equity is 9.11% for FY-2025 , which is above its historical median of -6.97%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of RS Software (India) Ltd?
RS Software (India) Ltd Return on capital employed is 9.4% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of RS Software (India) Ltd?
RS Software (India) Ltd Cash conversion cycle is 34 days, above its historical median of 34 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.61 0.4
ROE 9.11 -6.97
ROCE 9.4 -5.79
Cash Conversion Cycle 34 days 34 days
Q.9 Debt to Equity ratio of RS Software (India) Ltd?
RS Software (India) Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.01 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of RS Software (India) Ltd?
RS Software (India) Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of RS Software (India) Ltd?
Promoters hold 40.88% of the RS Software (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of RS Software (India) Ltd vs industry peers?
RS Software (India) Ltd revenue CAGR is -0.90% , compared to the industry median CAGR of 2.87% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 57.3 23.3
Gross Profit 10.7 1.8
Operating Profit 10.1 1
Net Profit 7.1 0.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.61 0.44
ROE 9.11 3.97
ROCE 9.4 6.41
Cash Conversion Cycle (days) 33.83 36

Valuation & price assessment

Q.1 Stock return of RS Software (India) Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -10.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price -10.7% 7% 13.9% -44.5%
Q.3 Valuation ratios of RS Software (India) Ltd vs historical?
The current P/E is similar that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 0.00 22.96
Price to Book 1.41 0.75 2.61
Price to Sales 3.31 1.17 4.40
EV to EBITDA -6.7 0.00 17.20

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