MarketsMOJO downgrades R Systems International to 'Sell' due to flat results and low cash reserves.

R Systems International, a midcap IT software company, has recently been downgraded to a 'Sell' by MarketsMOJO on November 18, 2024. This downgrade is based on the company's flat results in September 2024 and its low cash and cash equivalents of Rs 171.94 crore.
Despite being a midcap company, R Systems International has only 0.85% of its shares held by domestic mutual funds. This could indicate that the mutual funds are not comfortable with the company's current price or its business.

In the past year, the stock has underperformed the market, generating negative returns of -1.28% while the market (BSE 500) has generated returns of 23.90%.

On a positive note, the company has a low debt to equity ratio and has shown healthy long-term growth with an annual operating profit growth rate of 55.32%. However, the technical trend for the stock is currently sideways, indicating no clear price momentum.

With a return on equity of 23.6%, the stock is fairly valued with a price to book value of 9.4. However, it is currently trading at a premium compared to its historical valuations. In the past year, while the stock has generated a return of -1.28%, its profits have only risen by 1.8%, resulting in a high PEG ratio of 23.

Overall, based on these factors, MarketsMOJO has downgraded R Systems International to a 'Sell'. Investors should carefully consider these factors before making any investment decisions.