RS SOFTWARE mid cap IT stock

Right now, when the biggest issue for investors is corporate governance and when they are avoiding companies which have even the slightest hint of any kind of manipulations, there comes the third quarter performance of RS Software.

A tiny software company, it has anyway been between down quite a bit but it was surprising to see that it ended yesterday with a gain of over 3% at Rs.14. Surely, it managed to do this based on the performance of Q3FY09, which YoY has been good but down on a sequential basis. It posted a PAT of Rs.1.60 crore for the quarter ended 31/12/08 and this far exceeds PAT of FY 08, which was at Rs.1.17 crore. But compared to Q2FY09, this was down 6.74%.


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. And now for the Dec quarter the EPS is at Rs.2.02.

The sole aim of the promoters of the company is to have market operations and to trap the investors at the higher levels. Share now ruling at Rs.14 had its 52 week high of Rs.41 and Rs.10.90 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? thanks