data explosion - bets

Good for you mate! Keep going long in this. Mega returns in the offing for everyone!

 

RS software going to b a big from UPI. Visa episode completely priced in and for thst it has came down from 600 to 60.
fair point is upi may bring big revolution in banking, it is being backed by RBI and nandan nilkeni, Ramesh damani and bill gates advising dat payment platform going to b next big thing and above all you are getting the opportunity to buy RS software at extreemly cheap and at far away from its high at the point of this big UPI event.

Dont lose this opportunity and buy in truckload.it may really surprise u all in higher side.

 

So much talk of RS Software. Can any one tell me how they will execute this project of UPI. Is it like they will make a product platform and sell to government and they will get one time profit OR ELSE they will be given a cut for each transaction made by UPI Software Platform they make. If its the first case i.e, one time profit for product development then its waste to buy the stock OR ELSE its the second case i.e, transaction based billing/profits then market would have already taken this stock to rocket...! But its still lying there where it was. The news is already 1 year old i guess.

 

@Mrityunjay if product development was a one time thing, then companies like Microsoft, Apple etc. would have shut shop a long time ago after releasing their products . Now I dont need to tell you that product development is a high margin and high growth business. They probably will be developing the product (and improving it) and also supporting the UPI infrastructure. It is not clear, but it is a big opportunity nevertheless.

 

I agree with your point that product development is high margin business.However i will not start comparing Microsoft and Apple with RS Software.As a investor i see that their highest OPM (Gross and not net) is 24.80% (Source Screener) in last 10 Years when they worked with VISA the most esteemed Enterprise with loads of cash as we can assume. With VISA their OPM were below 24.80. Here is the Indian Government as its client. Is our government spendthrift we have to decide.

Next Point:
I agree software once its sold it will have maintenance phase.But maintaining 1 Lac Crore Rupee does not mean it will earn even 0.001% of the transaction (which is what my point was - which we do not know what the model is). Once we know how they will execute their business it will be skeptical.

I and You are not the only one who are so smart that this stock has so much guaranteed potential that it is still available below PE of 12 and Price to Book below 1.5.

I will always be doubtful of making any money in which government is involved be it software company or coal company in a Energy starved nation.

I will be glad if any one still can put concrete info on how they will execute this UPI integration.Whether it will be transaction based profits of just development and maintenance profits ...!

My Regards

 

I think the company wants to use this to meet its global aspirations in this field. Recollect its management talking on these lines.

 

Well I was trying to rebut your point about product companies and their revenues. Apple and MS are the best examples to compare, but I never said that RS software can become that.

RS software was quoting at 4-5 PE a few months back, so it has has already expanded its pe about 2 times. While I agree that the exact business model should be understood and probably thats whats missing in terms of understanding.

I dont think they will be dealing with the govt. only, they might be dealing with 29 banks which will be on UPI ie. managing their infrastructure and adding new payment product features.

Paypal became a multi-billion dollar company on the premise of being leader in online payments. Also look at Paytm and the likes with their valuations running into billions. RS is not exactly doing that but even if they get 20-30% of that pie, then we are talking quite a lot in revenues and profits.

There are a lot of ifs and buts still on the business model, but at least they are into that space on which I am very bullish on.

 

You have opened a nice point that they might be dealing with banks..! Keep posting if you get any more info on this. Your points are worth thinking about.

Regards