R Systems shares slipped 9% from day's high level; here's why

Shares of R Systems International Ltd wiped out all early gains in Thursday's trade after the company dismissed reports of Coforge considering a stake acquisition, referring to them as mere rumours.

"This is with reference to your respective emails dated June 19, 2025, seeking clarification on the news article titled 'R Systems shares jump 6% on reports of Coforge considering stake acquisition'. In this regard, we wish to clarify that the said news item and any speculation relating to the captioned subject do not have any factual basis to the best of the Company's knowledge," it stated in a BSE filing.

"The Company is not engaged in any such discussions or negotiations, nor is aware of any event that may have triggered such market speculation," R Sytems added.

The stock, which had climbed to a day high of Rs 468, later plunged 8.90 per cent to hit a low of Rs 426.35.

Technically, the scrip traded lower than the 5-day simple moving average (SMA) but higher than the 10-day, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 66.27. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-earnings (P/E) ratio of 34.75 against a price-to-book (P/B) value of 10.35. Earnings per share (EPS) stood at 12.55 with a return on equity (RoE) of 29.77. According to Trendlyne data, R Systems has a one-year beta of 0.93, indicating low volatility.

R Systems is a digital product engineering company that designs and develops chip-to-cloud software products, platforms and digital experiences that empower its clients to achieve higher revenues and operational efficiency. As of March 2025, promoters held a 51.90 per cent stake in the firm.