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Check Before You Invest : R Systems International Ltd

BSE: 532735 NSE: RSYSTEMS ISIN: INE411H01032
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does R Systems International Ltd belong to?
R Systems International Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is R Systems International Ltd a good quality company?
R Systems International Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is R Systems International Ltd undervalued or overvalued?
R Systems International Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is R Systems International Ltd a good buy now?
R Systems International 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 R Systems International Ltd?
R Systems International Ltd revenue growth is 0.8% for FY-2024 , which is below its 5 year CAGR of 18.4% , indicating slower growth.
Q.2 Gross Profit margin of R Systems International Ltd?
R Systems International Ltd Gross profit margin which is the profit after deduction of direct costs, is 23.2% for FY-2024 , which is in line with its 5 year median of 23.2% , indicating stable margins.
Q.3 Operating Profit Margin of R Systems International Ltd?
R Systems International Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.09% for FY-2024 , which is below its 5 year median of 19.12% indicating decreasing margins.
Q.4 Net Profit Margin of R Systems International Ltd?
R Systems International Ltd Net Profit Margin is 16.3% for FY-2024 , is in line with with its 5 year median of 16.3%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 23.2 23.2
Operating Profit Margin 19.09 19.12
Net Profit Margin 16.3 16.3
Q.5 Return on Asset of R Systems International Ltd?
R Systems International Ltd Return on Asset is 19.92(x), which is below its 5 year historical median of 22.35(x), indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of R Systems International Ltd?
R Systems International Ltd Return on equity is 30.75% for FY-2024 , which is in line with its historical median of 30.75%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of R Systems International Ltd?
R Systems International Ltd Return on capital employed is 37.01% for FY-2024 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of R Systems International Ltd?
R Systems International Ltd Cash conversion cycle is 37 , below its historical median of 41 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.22 1.26
ROE 30.75 30.75
ROCE 37.01 37.02
Cash Conversion Cycle 37 41
Q.9 Debt to Equity ratio of R Systems International Ltd?
R Systems International Ltd Debt-to-Equity ratio is 0.02 , which is above with the industry average of 0.01 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of R Systems International Ltd?
R Systems International Ltd Debt to cash flow from operations is 0.05 , which is at a healthy level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of R Systems International Ltd?
Promoters hold 51.88% of the R Systems International Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of R Systems International Ltd vs industry peers?
R Systems International Ltd revenue CAGR is 18.40% , compared to the industry median CAGR of 2.48% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 911.4 23.6
Gross Profit 211.4 1.9
Operating Profit 173 1.2
Net Profit 149 0.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.22 0.45
ROE 30.75 4.09
ROCE 37.01 6.4
Cash Conversion Cycle 36.74 36

Valuation & price assessment

Q.1 Stock return of R Systems International Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 15.4% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 15.4% 17.6% 0.2% -19.3%
Q.3 Valuation ratios of R Systems International Ltd vs historical?
The current P/E is lower 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 13.9 25.24 22.96
Price to Book 4.49 4.32 2.61
Price to Sales 2.81 3.12 4.40
EV to EBITDA 10.05 17.51 17.20

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