BSE:532735

Stock Analysis Report

R Systems International

Executive Summary

R Systems International Limited provides information technology solutions and business process outsourcing (BPO) services worldwide.

Rewards

Earnings grew by 13.9% over the past year

Risk Analysis

Earnings have declined by -15.33% per year over past 5 years

High level of non-cash earnings

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Excellent balance sheet average dividend payer.

Share Price & News

How has R Systems International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532735's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.6%

532735

1.7%

IN IT

-0.4%

IN Market


1 Year Return

90.1%

532735

5.7%

IN IT

11.1%

IN Market

Return vs Industry: 532735 exceeded the Indian IT industry which returned 5.7% over the past year.

Return vs Market: 532735 exceeded the Indian Market which returned 11.1% over the past year.


Shareholder returns

532735IndustryMarket
7 Day5.6%1.7%-0.4%
30 Day37.9%0.4%-1.5%
90 Day83.7%5.1%3.3%
1 Year94.2%90.1%8.5%5.7%13.0%11.1%
3 Year75.5%68.6%74.0%63.8%25.3%18.6%
5 Year37.4%23.4%56.3%41.9%35.4%23.1%

Price Volatility Vs. Market

How volatile is R Systems International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is R Systems International undervalued compared to its fair value and its price relative to the market?

19.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532735 (₹95.45) is trading above our estimate of fair value (₹40.95)

Significantly Below Fair Value: 532735 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532735 is poor value based on its PE Ratio (19.8x) compared to the IT industry average (11.5x).

PE vs Market: 532735 is poor value based on its PE Ratio (19.8x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532735's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532735 is overvalued based on its PB Ratio (3.4x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

How is R Systems International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.3%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as R Systems International has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has R Systems International performed over the past 5 years?

-15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532735 has a high level of non-cash earnings.

Growing Profit Margin: 532735's current net profit margins (7.2%) are lower than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: 532735's earnings have declined by -15.3% per year over the past 5 years.

Accelerating Growth: 532735's earnings growth over the past year (13.9%) exceeds its 5-year average (-15.3% per year).

Earnings vs Industry: 532735 earnings growth over the past year (13.9%) exceeded the IT industry 7.6%.


Return on Equity

High ROE: 532735's Return on Equity (17.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is R Systems International's financial position?


Financial Position Analysis

Short Term Liabilities: 532735's short term assets (₹3.7B) exceed its short term liabilities (₹1.0B).

Long Term Liabilities: 532735's short term assets (₹3.7B) exceed its long term liabilities (₹251.7M).


Debt to Equity History and Analysis

Debt Level: 532735's debt to equity ratio (0.9%) is considered satisfactory.

Reducing Debt: 532735's debt to equity ratio has increased from 0.4% to 0.9% over the past 5 years.

Debt Coverage: 532735's debt is well covered by operating cash flow (1611.2%).

Interest Coverage: 532735's interest payments on its debt are well covered by EBIT (37.1x coverage).


Balance Sheet

Inventory Level: 532735 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 532735's debt is covered by short term assets (assets are 126.6x debt).


Next Steps

Dividend

What is R Systems International's current dividend yield, its reliability and sustainability?

3.14%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%0.6%markettop25%2.5%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 532735's dividend (3.14%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 532735's dividend (3.14%) is in the top 25% of dividend payers in the Indian market (2.51%)


Stability and Growth of Payments

Stable Dividend: 532735's dividend payments have been volatile in the past 10 years.

Growing Dividend: 532735's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.1%), 532735's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.8yrs

Average management tenure


CEO

Satinder Rekhi (68yo)

8.8yrs

Tenure

₹39,737,573

Compensation

Mr. Satinder Singh Rekhi served as Executive Director of Corporate at ECnet Ltd. Mr. Rekhi is the Founder of Indus Software Pvt. Ltd. in 1993 and serves as its Chairman and Chief Executive Officer. Mr. Re ...


CEO Compensation Analysis

Compensation vs Market: Satinder's total compensation ($USD555.66K) is above average for companies of similar size in the Indian market ($USD298.20K).

Compensation vs Earnings: Satinder's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Satinder Rekhi
Founder8.8yrs₹39.74m12.44% 1.4b
Baldev Singh
President & Senior Executive Director22.4yrs₹7.50m0.085% 9.7m
Nand Sardana
Chief Financial Officer8.4yrs₹6.97m0.11% 12.0m
Avirag Jain
CTO & Whole-time Director2.5yrs₹7.59m0.000080% 9.1k
Bhasker Dubey
Company Secretary & Compliance Officer2yrs₹1.15mno data
Mandeep Sodhi
Chief Operating Officer of R Systems USA Operations0yrsno data0.49% 55.9m
Harsh Verma
VP of Global Innovative Research & Head of Mobility Solutions0yrsno datano data
Khosrow Hassibi
Chief Data Scientist0yrsno datano data
Jefferey Johnstone
Director of Client Services0yrsno datano data
Damian Clinton
Senior Sales Director0yrsno datano data

7.8yrs

Average Tenure

56yo

Average Age

Experienced Management: 532735's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Satinder Rekhi
Founder8.8yrs₹39.74m12.44% 1.4b
Baldev Singh
President & Senior Executive Director22.4yrs₹7.50m0.085% 9.7m
Avirag Jain
CTO & Whole-time Director2.5yrs₹7.59m0.000080% 9.1k
Ruchica Gupta
Non-Executive Independent Director5.6yrs₹275.00kno data
Aditya Wadhwa
Non-Executive Independent Director3.7yrs₹250.00kno data
Kapil Dhameja
Non-Executive Independent Director3.7yrs₹225.00kno data

3.7yrs

Average Tenure

68yo

Average Age

Experienced Board: 532735's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

R Systems International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: R Systems International Limited
  • Ticker: 532735
  • Exchange: BSE
  • Founded: 1993
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹11.416b
  • Shares outstanding: 119.60m
  • Website: https://www.rsystems.com

Number of Employees


Location

  • R Systems International Limited
  • C-40, Sector-59
  • Noida
  • Uttar Pradesh
  • 201307
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532735BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2006
RSYSTEMSNSEI (National Stock Exchange of India)YesEquity SharesININRApr 2006

Biography

R Systems International Limited provides information technology solutions and business process outsourcing (BPO) services worldwide. The company offers ECnet Pro trading platform, a supply chain management and business-to-business platform that allows to collaborate and complete purchase related processes and transactions; Computaris Convergent Charging solution to converge real-time rating, charging, and billing; mobile broadband management solutions; Computaris mobile virtual network operator in a White Box solution for MVNOs business exigencies; and value added services It also provides services in the areas of data and analytics consulting, data engineering, business insights, advanced analytics, and customer experience analytics; robotic process automation; quality assurance and engineering, digital transformation, and advisory and consulting; outsourced product development; application development; BPO and KPO services; and packaged solutions. The company serves banking and finance, telecom and digital media, healthcare, manufacturing, and logistics industries. R Systems International Limited was founded in 1993 and is headquartered in Noida, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 12:53
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.