Savvy and big-ticket investors are laying siege on the RS Software counter. At the rate at which the savvy investors are gobbling up RS Software’s stock, there will soon be nothing left for us if we don’t act fast.
Dolly Khanna, our favourite stock wizard was, as usual, first in queue. She was the first to spot the opportunity in RS Software as far back as December 2012. She quietly scooped up a chunk of 1,91,723 shares when the stock was languishing at Rs. 173. Nobody even noticed. Thereafter, she has been systematically buying the stock. You can tell Dolly’s confidence level in the stock by the fact that she has more than doubled her holdings to 420,787 shares.
A number of other heavy-duty investors have also shown deep interest in RS Software.
Barclays Wealth Trustees is the largest shareholder with 574,320 shares. Orange Mauritius Investments LP and SLG International Opportunities LP are right behind it with a holding of 218,771 and 192,100 shares. Sunil Singhania’s Reliance Capital holds 401,850 shares. In fact, Sunil Singhania bought a chunk of 70,000 shares for Reliance Capital as late as 10th July 2014 by paying Rs. 325 a piece.
Now, Vijay Aggrawal has joined the elite list of large shareholders of RS Software. On Monday, 11th August, he stormed the counter and grabbed a massive chunk of 90,000 shares at Rs. 437 each without even batting an eyelid. The fact that the stock has surged 40% in a month and 147% in 3 months didn’t bother him one little bit.
Savvy investors don’t show such confidence in a stock unless they know for sure that something good’s going on.
The important point is that it is not only the savvy investors but even a few analysts have started showing interest in the stock.
Sunidhi Securities, FirstCall Research and HDFC Securities have issued elaborate research reports in which they have analyzed RS Software threadbare and recommended a buy. Even the redoubtable Vineeta Mahnot, who has a long list of multi-baggers to her credit, has come out strongly in favour of RS Software.
Personally, I don’t think we can afford to just stand around like mere spectators while the savvy investors take home the cream. We need to stake our claim to the stock by urgently starting a SIP, if we haven’t already done so.