R Systems International - Leveraging The Blackstone Channel For Growth: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.R Systems International Ltd. has evolved into a prominent player in the Product Engineering space, with capabilities in cloud, data, and AI. Management expects global outsourced engineering services spend to touch $450-500 billion in CY25E at 11% compound annual growth rate over CY20-25E. The company operates in three out of four sub-segments of this market (higher-than-industry growth). These include, digital engineering, software product engineering and embedded engineering. These 3 sub-segments are projected to expand at 22%, 16% and 19%, respectively, over CY20-25E, and R Systems International is aptly placed to gain in this scenario, as per management. With Blackstone Group as its new promoters, R Systems International is looking to venture into organic and inorganic expansions under the guidance of its new CEO, Mr. Nitesh Bansal, who has spent 23 years at Infosys (as head of global product engineering division). The company ended CY23 with $200 million revenue and 14.7% Ebitda. R Systems International expects margins to improve to high 15s or early 16s, aided by pyramid rationalisation and operating efficiency. We do not have a rating on the stock, which currently trades at 42 times one-year forward multiple (consensus estimates for CY24 and CY25 EPS)..Click on the attachment to read the full report:.3M India - Strong Investments In New Product Development: ICICI Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

R Systems International - Leveraging The Blackstone Channel For Growth: Systematix

At 43 times one-year forward multiple, the company trades at 120%+ premium to its last 10-year average multiple, according to the brokerage.

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