Bartronics India - Rs.61.00

Bartronics India Ltd. (BIL) was originally incorporated in 1990 as Super Bartronics Private Ltd. and was converted into public limited company in 1995. It got its current name i.e. BIL on 1st January’96. Starting its business from the field of bar coding and smart card technology, today BIL is India’s undisputed leading Automatic Identification and Data Collection (AIDC) solution provider offering consulting services, design software, hardware, personalization and full implementation services. Presently, it provides solutions pertaining to diverse range of AIDC technologies such as barcode technology, RFID (Radio Frequency Identification), RFDC (Radio Frequency Data Communication), EAS (Electronic Article Surveillance), Smart Card technology and Biometric technology.

BIL’ product range includes Barcode scanners, Barcode printers, Barcode Decoders, Smart Card Readers, Data Collection Terminals (DCTs) and Portable Transaction Computers, Radio Frequency (RF) and InfraRed (IR) based equipment and Access Control Systems. It also provides PVC Cards, Magnetic Cards, Smart Cards and contactless/ Proximity Cards to its clients across the world. In fact, the company is a topnotch provider and high-end supplier for Barcoding Printers and Scanners, HHTs, DCTs, Media Supplies like Direct Thermal Labels, Thermal Transfer Labels and Tags in addition to Universal Access Points and Vehicle Mounted computers. BIL’s clientele include government establishments, MNCs, large private sector corporates and the Retail Industry at large. A few of its prestigious clients are HLL, ABB, Hero Honda, ITC, Ranbaxy, TCS, L&T, Ranbaxy, Cummins, GM, IBM, Panasonic etc.

AIDC is now being seen as a radical and revolutionary data carrier and identifier discipline with principles and practices that can be applied virtually to every sector of industry, commerce and services where data is handled and needs to track and trace individuals, materials and equipment. Moreover, RFID is a technology that holds tremendous potential and BIL is certainly in a position to leverage its expertise. In short, the company is poised to grow exponentially in coming years. To fund its growth plans and meet working capital requirements, the company raised around Rs.50 cr. through IPO route at Rs.75 per share in December’05. For FY06, it reported total revenue of Rs.29 cr. and net profit of Rs.5.34 cr., which is expected to shoot up to Rs.50 cr. and Rs.8 cr. respectively for FY07. This translates into an EPS of Rs.4 and Rs.5 respectively. Being in such a fast growing sector and holding immense potential, the company deserves far better discounting. At a reasonable P/E ratio of 18 the scrip should trade in the region of Rs.90-100 (40-50% appreciation). Investors are recommended to accumulate BIL at declines and hold it for at least a year. For real long-term investors i.e. holding period for 3-5 years it can even turn out to be a multi bagger.