Value stock: This high dividend yielding small cap IT stocks has given a price volume breakout

The shares of R Systems zoomed by more than 8 per cent on Tuesday. R Systems International share price is up by over 12 per cent in the past 5 trading sessions and is up by over 17 per cent in past one month alone.

R Systems International declared a very positive set of results for the September quarter where the PAT (HY) has jumped by over 94 per cent and the ROCE (HY) is reported at 33.64 per cent.

R Systems International is a small cap IT company and at current price is offering a dividend yield of 2.30 per cent. The dividend per share declared (second interim dividend) is Rs 3.20 with effective date 11 November.

At current price the shares of R Systems are attractively priced and the PEG ratio for the stock is 0.25 while the P/E multiple is little over 20.

Technically the stock has given a channel breakout after consolidating in the range of Rs 200 to Rs 227 for over 4 odd months. The price volume breakout along with positive set of results and attractive dividends may attract buyers and hence the stock should be on investors radar.

R Systems International is a multibagger IT stocks that has soared by 107 per cent in past one year while in past five years the stock has gained by more than 344 per cent.