R S Software

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by rkpatel09, Mar 26, 2015.

  1. rkpatel09

    rkpatel09 New Member

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    Why R S Software is going down n down mainly after stock split?...
    Is there anything wrong?

    It was one of the star performers of your blog.
     
  2. Meenakshi Razdan

    Meenakshi Razdan Administrator Staff Member Moderator

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    My guess is that there is a problem with VISA, its only/major client. There is a news item in TOI that "Visa signs $200 million contract with Infosys". This may mean that some of the work flowing to RS Software may flow to Infosys.

    This event was listed as a risk factor in the research reports of HDFC Sec etc.
     
  3. rkpatel09

    rkpatel09 New Member

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    thanks mam...should we buy at these levels or avoid..
     
  4. Meenakshi Razdan

    Meenakshi Razdan Administrator Staff Member Moderator

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    Well, the stock is cheap at this stage ... but unless we know what caused the severe fall, can we take the risk? That is the big dilemma. If you wait for clarity, it may be too late because the stock may jump. On the other hand, if you buy now and there is bad news, you could lose money.

    I think everything depends on the investors' temperament and confidence level.
     
  5. rkpatel09

    rkpatel09 New Member

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    I would like to wait and see what happens...
     
  6. emmanuel leorn

    emmanuel leorn New Member

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    First Source Solutions looks a much better Company compared to RS Solutions..... Better Sales Better Profits better Margins.... But here is my Question.... Why is this Stock priced at rs 160 plus and why is First source solutions languishing at rs 28
     
  7. Meenakshi Razdan

    Meenakshi Razdan Administrator Staff Member Moderator

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    RS Software has been surging to double digits today and yesterday. I wonder if there is any positive news or what is the reason.
     
  8. adijsg

    adijsg Member

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    In IT sector can go for helios and matheson quotting at a redicilous PE of 2.46 and book value of 117 cmp 42 can be a multi bagger downside is limited no more tha 37 uside may be 120 in a year only thing is debt and they are trying to reduce it
     
  9. Meenakshi Razdan

    Meenakshi Razdan Administrator Staff Member Moderator

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    Wow! Hit the upper circuit of 20%. Great show by RSSoftware.
     
  10. Guru Vachaal

    Guru Vachaal Let's discuss the fundamentals..

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    I see no critical problem with the fundamentals of RS Software Ltd. FY15-16 is likely to recover the recent price decline.

    I am holding it since last 1 year.

    :)
     
  11. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    If there was no critical problem why the stock price fell so sharp? Some big shareholders appear to have sold. I am still worried about the future of the stock. Also we must wait for results before taking a buy decision.
     
  12. Guru Vachaal

    Guru Vachaal Let's discuss the fundamentals..

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    Srouta, Friend..Do you know the legendary investor Lt. Shri chandrakant sampat? He had 4 mool-mantras of selecting a pick.

    1) No debt
    2) Less capital expenditure
    3) ROE > 25
    4) Div yield > 3 or 4%

    RS Software has all these qualities.

    Regarding the downfall, I would just call it technical correction as last year it had multiplied the price 4 times.

    Company may announce aquisition or merger soon.

    One client dependency is the risk.
     
  13. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    This is possible.

    This is the big worry.
     
  14. Guru Vachaal

    Guru Vachaal Let's discuss the fundamentals..

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    Where there is worry, there is Opportunity.

    It will be trading 10 Times higher in the absence of our worries but at that time buyers will burn their hands..
     
  15. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Very good point! Equities are about taking risk and getting reward! :)
     
  16. visitkumaresh

    visitkumaresh New Member

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    As Meenakshi mentioned now it is like risk to reward ratio in rss will decide the future my bet is as long as we able avg our price in such a way market cap to sales < 1 we may trade the stock in short term but clarity will come only after jun fy 16 don't go by March results if you watch Richard Nicholas of usa has sold his stock holding. Major worry is not Infosys getting visa contract it is hitachi which is coming out with new payment product software if approved by visa it will have a huge impact on the revenue of rss and remember rss has no other product protfolio
     
  17. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Who is Richard Nicholas? Where is the news that he has sold? What about Dolly Khan a? Is she in or out? Where is news about Hitachi? Pl give link. Is it okay to buy or not?
     
  18. Guru Vachaal

    Guru Vachaal Let's discuss the fundamentals..

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    Do not worry :)

    Nicholas has sold just a part of his holding and Dolly is also still invested.

    If there is something that can bring serious troubles to your life is your own PANIC.
     
  19. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Okay Sir. I am cool
     
  20. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Congrats Sir. Great call. Stock is up 17%. How I wish I had bought more and more and more :)
     
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