Wealth Creator: R System International – The systematic wealth building Stock.

Company Profile :

R Systems International Limited provides IT and IT enabled services for the banking and finance, high technology, independent software vendors, telecom and digital media, government, healthcare, manufacturing, and logistic industries worldwide.
It operates in two segments, Information Technology Services and Products; and Business Process Outsourcing Services. The company offers Indus Loan Origination system that handles loan processing applications; Indus Loan Servicing module for repayment transactions; Indus Collections module to track and recover non-performing loans; Indus Dealer/Inventory Funding module; Indus Collateral management module to capture demographic, valuation, and insurance related information about collaterals; and microfinance solutions. It also provides Indus Credit Management and Revenue Collections module to automate and streamline revenue collections, and delinquency management process; Indus Dealer Management solution to induct, monitor, promote, reward, and discipline network of dealers/agents; Indus Commissions and Incentive module that facilitates the calculation of commissions and incentives; Flodox, a Web-based workflow management system; R Space Portal, an enterprise portal; and Indus Renewals and Retention System, a renewals and retention system to retain customers and collect premiums. In addition, the company offers ECnet Pro, a supply chain management and business-to-business platform 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 MVNO for MVNOs business exigencies; and value added services. Further, it provides integrated product life cycle management, application, testing, and packaged services. R Systems International Limited was founded in 1993 and is headquartered in Noida, India. As of May 15, 2015, R Systems International Limited was taken private.

Year over year, R Systems International Limited has been able to grow revenues from 6.0B INR to 6.5B INR. Most impressively, the company has been able to reduce the percentage of sales devoted to cost of goods sold from 64.50% to 63.74%. This was a driver that led to a bottom line growth from 527.0M INR to 781.3M INR.

The promoters have been increasing their shareholding every year(check BSE website for the same). Recently the company also announced a dividend of Rupee 3.30p /share thereby taking the total to Rupee 5.85/annum.

With ROE @ great 35.42 % , ROCE @22.90 % , Margins @36.96 % and a cool Tax Free dividend yield of 8.55 % along with increasing sales YoY ,the company hasn't grabbed the eyeballs yet but in no time it will rub shoulders with IT majors.

@ Rs. 69 per share ,the company is expected to give multibagger returns in years to come ,the stock price has fallen 30% from 52 week high due to market turmoil but is expected to reverse the trend in long run.So its buy at every level upto Rupee 100 with accumulate option at every dip.

Disclaimer: I hold this stock and have entered at various price points. It is advisable to do your thorough research before investing.