Micro Technologies - 230.00 Rs

Established in 1992 and promoted by Mr. P Sekhar, Micro Technologies (India) Ltd. (MTIL) is a global provider of security, safety and life-support solutions. Over the years, MTIL has developed a wide range of security and IT products using its leverage over various futuristic technology platforms such as embedded, web-based and client server applications. Today, MTIL can boast of having very unique, hi-tech, first of its kind and innovative products like Lost Mobile Tracking System, Secure-Bank Black Box, Vehicle Black Box, Disaster Management System, Home Security System, Intelligent Black Box, Access Control Solution etc which have huge demand world wide. Some of the company's focus areas comprises of meeting utmost challenges viewing the requirement from the international perspective and delivering quality services in terms of security, e-commerce, wireless telecom and GIS technology universally. Ironically with over 80 IPR’s, its technology has been patented in 123 countries, giving it exclusive rights in these markets. Besides it has various web-based and non web-based software products for banks, hospitals, chartered accountants, lawyers, housing societies, SME’s, transporters etc. To summarize company’s revolutionary products are the USP for the company.

After developing and having world class products in its kitty, MTIL is now focusing more on marketing and distribution to increase its presence in India as well across the world. Accordingly it has appointed more than 2000 dealers/distributors all over India, opened more than 50 Micro Shoppe franchise outlets, increased participation in exhibition and has also increased the advertisement budget substantially for brand building and product awareness. It has also set up Micro Service centres to provide maintenance and support facilities. On the international front, it has a number of strategic alliances with majors like Siemens AG, Sony Ericsson, Automobile Research Association of India (ARAI), Knowledge Vector and Girvan Institute of technology to name a few. It has also entered into marketing tie-ups with numerous foreign companies like Active Solutions, Easy Fleet Solutions, Tokyo Software, Pacific Solution, Status Solutions etc to increase its global presence. Meanwhile, MTIL continues to have a strong R&D team with over 100 people working on multiple innovations to ensure that company introduces five to six new products in the market every year. Recently, it has launched couple of dynamic products like Office Black Box for office security and Electric Black Box for power industry which too has great potential. Notably, company has got a good breakthrough by bagging orders from Department of Explosives, India and Premium Municipal Corporation, UAE.

To fulfill the growing demand, MTIL is undergoing aggressive expansion to triple its capacity. Besides India, company has huge plans for export especially to USA, Middle East and European market. Hence it is desperate to make some acquisitions to make its foothold stronger in international market. On the other hand, it intends to quadruple the count of Micro Shoppe by this fiscal end. It has even launched a novell concept of Mobile Micro Shoppe ie Shops on Wheels. In order to fund its growth plan company is planning to raise around 85 cr thru FCCB/GDR route. It is also making preferential allotment of 11.50 lac shares/warrants which is expected to take place around 300/- Rs per share. To conclude, MTIL is bound to grow at a scorching pace through product innovations, strategic tie-ups and geographical expansion. For FY07 it recorded 80% growth in both sales as well as NP to 106 cr and 32 cr respectively. This means EPS of 30 Rs on equity of 10.50 cr. For FY08 the sales and NP can shoot up to 150 cr and 42 cr ie EPS of 28 Rs on estimated diluted equity of 15 cr. Hence investors are strongly recommended to buy at current levels as share price can easily double in 15 to 18 months.