Brokerage firm Dolat Capital has initiated coverage on R Systems International Ltd. with a 'Buy' rating and has set a target price of ₹410, implying an upside potential of about 71% from current levels. According to the brokerage, the sustained outsourcing momentum pick-up by mid-market enterprises continues to remain a sweet spot for R Systems to drive high-quality outcomes. The rising adoption of AI-led development and platform modernisation further expands wallet share opportunities.
As reported by Dolat Capital, R Systems' full-stack capabilities across cloud, data, and AI, combined with its product mindset, position it well to capture the shift and deepen client engagement. The brokerage notes that recent market correction has meaningfully eased valuations, providing an attractive opportunity as the stock now trades at sub 12 times of its CY27 earnings. Dolat Capital estimates CY27E EPS of ₹20.6 and assigns a multiple of 20x (implies 1x PEG basis) to arrive at the target price of ₹410.
Despite the positive outlook, Dolat Capital cautioned about risks including macro-driven slowdown in IT spending, high dependence on North America, and execution challenges related to acquisitions. However, the brokerage believes the company is well positioned to navigate these headwinds. The coverage initiation comes as part of NDTV Profit's special research section that collates quality equity research reports from across India's top brokerages.
