RS Software a tiny software company is trying to make its presence felt by posting better results for the quarter ended September 08, wherein PAT of the company of Rs.178 lakhs for the quarter, far exceeds PAT of FY 08, which was at Rs.117 lakhs.
There seems to be no correlation between the profitability over the quarters, as also in regard to EPS stated by the company, for various periods. For FY 08, on equity base of Rs.744 lakhs, with PAT of R.117 lakhs, EPS is stated at 16 paise, while for September 08 quarter, on PAT of Rs.178 lakhs, EPS on equity of Rs.744 lakhs is stated at Rs.2.18.
The sole aim of the company is to create sensation by publishing its quarterly results with blocks of “Net Profit up 100 times” etc. The sole aim of the promoters of the company are to have market operations and to trap the investors at the higher levels. Share now ruling at Rs.18 had its 52 week high low of Rs.52 and Rs.15 and when established mid cap I.T. companies are available at a PE multiple of 3 to 4 times, who would be interested in these manipulative stocks.
Time seems to have come where management must refrain themselves from indulging in these gimmicks as also for the investors to take a fundamental view on the tock.
Source: sptulsian.com
