CCS Infotech- Rs.18.50

Incorporated in 1997, CCS Infotech Ltd (CCS) specializes in providing cutting edge information technology solutions in computers hardware, networking solutions and software development. Today, CCS has established itself as one of the premier companies in India engaged in the manufacturing, marketing and export of Desktop Computers, Laptop Computers, peripherals and other accessories. It sells its products under the brand name of ‘CCS’ and provides cost effective and high performance computer networking solutions to build Local Area Network, Wide Area Network and Wireless LAN to access the Internet and share data and resources between computers for Small & Medium enterprises (SME) business customers. It also provides Internet connection using ISDN, lease lines and Wireless Internet Connectivity (Broadband) using VSAT & RF Point to Point Communications. Its software division provides services for system design, software development, system integration and implementation, support and education, website development, hosting & maintainance etc. Some of the company's prestigious clients are BSNL (Tamilnadu, Kerala, Andhra Pradesh, Karnataka), Central Excise Department, Central Telegraph Office (Chennai), CPWD (Chennai), Customs Department, Income Tax Department, Indian Institute of Technology, Videsh Sanchar Nigam Ltd (VSNL), Cine Films & Arts, Consulate of Japan, Anna University (Chennai), etc.

CCS is a Microsoft certified partner and also an Intel premier provider. It is also the business partner for well known international brands like IBM,HP, etc. In India, CCS operates through 12 branches and 50 channel partners and plans to appoint 50 more channel partners in South & West India. It has national presence through its offices at Chennai, Coimbatore, Vellore, Madurai, Salem, Pondichery, Thiruvananthapuram, Mumbai, Bangalore, Secunderabad and global presence by its operations at its overseas office in Singapore to cater to international customers. It has tied-up with ‘VIVEKS’ - a chain of consumers durable showrooms for selling CCS brand of computers. The company also plans to set up a nationwide franchisee network to sell its CCS brand of Desktop PCs, high end Server solutions etc and also intends to set up an office in Mauritius.

Fundamentally, it’s a turnaround story as the company posted a NP of Rs.2 cr. in FY05 compared to a Net loss of Rs.3.90 cr. in FY04. Due to the earlier losses, the company’s general reserve has marginally turned positive in FY05 itself. So its BV is approx Rs.10. For June’05 qtr Sales tripled to Rs.11 cr. whereas NP jumped 380% to Rs.1.05 cr. registering a quarterly EPS of Rs.1.10 on its current equity of Rs.9.16 cr. Looking at the company’s recent orders and its June numbers, it seems that the management has turned aggressive and may end FY06 with sales of Rs.50 cr. and NP of Rs.4 cr., which means an EPS of Rs.4. Being in a competitive industry and a turnaround story, only aggressive investors are recommended to but at current level with expectation of 50% return in 9~12 months.