R S Software (India) Ltd. BSE Code: 517447 NSE Code: RSSOFTWARE Last Close: Rs.15.
R S Software (India) Ltd. is a Kolkata based software company engaged with the world’s largest payment card association/network since last 16 years. The company has an equity of just Rs.7.44 cr. For the September 2008 quarter, it has posted marvellous results. While net sales jumped by 43.30% to Rs.36.57 cr., net profit zoomed 8800% to Rs.1.78 cr. For the first six months, net sales zoomed 37.58% to Rs.67.11 cr. while net profit was Rs.2.61 cr. against a loss of Rs.68 lakh in previous corresponding period. The company has recorded an EPS of Rs.2.39 against Rs.0.03 in September 2007 quarter. At current levels, the stock is trading at a P/E ratio of 4.3. Its 52-week high/low is Rs.52/15. This means that the stock is available at its 52-week low and appears to be a risk-free investment bet. Buy at every decline with stop loss of Rs.11.50. On the upper side, the stock will go up to Rs.22.50-25 level in the next 3-4 months.
R S Software (India) Ltd. is a Kolkata based software company engaged with the world’s largest payment card association/network since last 16 years. The company has an equity of just Rs.7.44 cr. For the September 2008 quarter, it has posted marvellous results. While net sales jumped by 43.30% to Rs.36.57 cr., net profit zoomed 8800% to Rs.1.78 cr. For the first six months, net sales zoomed 37.58% to Rs.67.11 cr. while net profit was Rs.2.61 cr. against a loss of Rs.68 lakh in previous corresponding period. The company has recorded an EPS of Rs.2.39 against Rs.0.03 in September 2007 quarter. At current levels, the stock is trading at a P/E ratio of 4.3. Its 52-week high/low is Rs.52/15. This means that the stock is available at its 52-week low and appears to be a risk-free investment bet. Buy at every decline with stop loss of Rs.11.50. On the upper side, the stock will go up to Rs.22.50-25 level in the next 3-4 months.
Paramount Communications (Rs.9.21) has completed Phase II of its expansion project, which commenced commercial production in February 2008 and the installed capacity for power cables increased to 58500 KMs per annum. This includes all types of electric cables viz. LT/HT Power Cables, Control Cables, Instrumentation Cables, Thermocouple Cables, Railway Signalling Cables etc. The company's export business has increased from Rs.8.27 cr. to Rs.43.17 cr. during the year recording excellent growth. The company can now target further growth in export business catering to several export markets through its whollyowned subsidiary, AEI Cables Ltd., UK, which is one of the oldest cable manufacturers in the world with an excellent global track record. The company targets 100% growth in exports in the next financial year. The stock has fallen from its high of Rs.63 to current level while its book value is Rs.23. It is likely to report strong consolidated results in the current year with falling raw material prices of copper, aluminium, PVC that will help the company to improve margins from Q4 of the current year. Risk factor is its high debts. Investors can accumulate this stock for investment at current levels. Face value of the stock is Rs.2.
Source: Moneytimes (Internet)
