R S Software

I see a lot of discussion about this stock...but I have a question ? from highs of 87 the stock reached 800 then fell is down to 200 ..why ?

 

There was stock split. Old FV 10, new FV Rs. 5 on 21st January 2015. In one year, the stock is up 99%. The 52 week high is Rs. 415 on 23 September 2014. It is favourite stock of Dolly Khanna. Unfortunately, the VISA fear has spoilt sentiment in stock. Today, stock is down more than 50% from peak.

 

I saw this news item at value picker:

https://www.finextra.com/news/fullstory.aspx?newsitemid=26496

People at valuepicker are stating that VISA May be going independent of RS Software.

 

If i study the shareholding pattern correctly, Dolly khanna is holding 861638 shares in Mar 15 quarter against 445739 shares in Dec 14 quarter. Which implies increase of 415889 shares. At the same time percent of shares held is decreased to 3.36 in Mar 15 quarter to 3.47 in Dec 14 quarter. This means two things

1) The equity of company has expanded.
2) Dolly khanna has increased the stake significantly in this quarter.

Please correct my observations if wrong.

 

@Bholu- Reason is stock split.

 

@ srouta: Dont get confused my friend.

Fall is due to flat revenue growth. Rumor has negligible impact.

 

RS Software (I) Ltd may finish its M&A activity within next 4-6 months and employee cost is down because lots of business has been shifted to India (now they are remunerating in rupee than dollar) and they are hiring freshers to improve the cost structure.

- (Management via Email)

 

Any latest on RS Software? my holding on this is now worth 40% of what it was a year back...is there any hope on this stock??

 

Guru Vachal is expert in stock but he is not answering. Maybe he also have heavy loss from stock. What other stocks you have in portfolio? What is % of RSS in portfolio. If loss is bearable better hold because stock is factored in worst outcome (cancellation of VISA) so further downside may not happen. Now only good thing may happen if some new client comes to RSS. Also new opportunities in payments bank, PayTM etc may help Co.

 

RS Software is focusing on UPI and have good potential to scale back up to original levels. However, it will take some time (1-2 years at least). If you have the patience, then hold.

 

Is it reliable tool?

 

No. Not 100%. But, if 100% of moneycontrol users have voted for it, you can think over it. You have to do your own homework before taking any decision.
None of the advice / comments by experts on tv or other media is 100% reliable. You have to do your own homework before taking any decision.TV anchors always say that you should consult your financial advisor before investing.