Visesh Infotechnics Ltd. - Rs.36.00

Established in 1989 as an ERP software product company, Visesh Infotecnics Ltd. (VIL) is today a mature and fast growing company committed to providing reliable and cost-effective IT solutions to organizations globally. It has a state-of-the-art software development facility in Bangalore and another one at Gurgaon. Besides, it also has a base in Bangkok with a large strength of software and networking professionals. Importantly it has strategic partnerships & alliances with global IT leaders like Novell, Microsoft, Oracle, Compaq, IBM, Sun, Cisco, 3Com, HP, Toshiba etc. Its software and technology solutions are being used successfully in almost all industry verticals such as telecommunications, chemicals, automobiles, pharmaceuticals, services (including finance & ITeS), government, education, sugar, sales & distribution etc. Hence, VIL has a formidable client list of more than 1000 large and medium size corporates including several reputed multinationals and overseas clients and has been declared a winner in the world-renowned Deloitte Technology Fast 500 Asia-Pacific 2005 programme. It is also winner in the inaugural Deloitte Technology Fast 50 India programme.

VIL’s operations can be broadly divided into three segments: IT Solutions & Product Support, Enterprise Software & IT enabled Services. It has a proud history of product development and that of an IP (Intellectual Property) creator. In the ERP space, the company has three products namely BusinesSoft™, BusinessPro™ and powERPro, which are doing extremely well. Another software product VRetail™ is specially designed for retail space and has been deployed successfully by several departmental stores, supermarkets and retail chains in India and overseas. The company has lately diversified into high technology and fast emerging areas of mobile telematics with launch of TransXS™ pioneering remote vehicle tracking service that facilitates corporates and fleet operators to get 24x7 real-time information of their fleet location and enhance logistics management through vehicle utilization analysis, route planning, asset tracking etc. VIL also has a division called InfraServe, which designs, builds and manages IT infrastructure for its clients globally through effective deployment of hardware, software and networking products. Last fiscal, the company ventured into business of Knowledge Process Outsourcing (KPO) & BPO through its newly-formed division VConnect™ which has good orders and is expecting new legal process outsourcing contracts from reputed US Based law firm. A few months back, it entered into 50:50 joint venture with Cyberworks Software, USA, to provide outsourced services to its clients from its contact centers (BPO units) in India. Its Lapps.Biz™ is an e-commerce portal that provides mobility devices (laptops, hand-helds etc.) and applications to the upwardly mobile retail buyer at the click of a mouse. The company also offers internet and web based services thru SignDomains™, StepOne™ & InfraSurf™.

Notably, VIL has some aggressive expansion plans for which it is planning to raise around Rs.44 cr. through FCCB / GDR/ preferential allotment route and has already taken the approval at the recent EGM. For FY06, its top-line increased by 120% to Rs.78.50 cr. and net profit shot up by nearly 6 times to Rs.11.05 cr. i.e. EPS of Rs.4. It declared Re.1 as dividend, which means a healthy payout ratio of 25%. For this fiscal, it is expected to register total revenue of Rs.125 cr. and with profit of Rs.19 cr. i.e. EPS of Rs.7 on its current equity of Rs.26.97 cr. Promoters’ holding is around 56% and its book value stands at Rs.27. Although it needs funds for expansion, still it may declare 12.50% as dividend for FY07. Its forthcoming FCCB/GDR is expected to be placed above Rs.50 per share. Hence investors are strongly recommended to buy at current levels with a price target of Rs.55 (50% returns) in 9-12 months.