Small & Beautiful
Vakrangee Software (152.00) has emerged as the only provider of document management and printing management solutions in the organized sector. With more than 15 years of experience in servicing various government organizations, company forayed into the private sector for the first time during last fiscal, which includes large companies from the BFSI, retail and telecom sector in both its DMS and PMS vertical. It digitized various inbound documents (including application and KYC forms) and developed customized software for each project. To meet the growing customers need in the print management segment, it tied up with Eastman Kodak and installed Asia’s biggest large scale variable color data printers. It is setting up a new hub office at Gurgaon equipped with second printer of same type. Last year it opened 32 new offices and has plans to open 100 more in couple of years. Meanwhile, India is reporting the fastest global growth in e-governance, catalyzed by the implementation of the RTI Act, which makes it mandatory for all government departments to digitize their physical documents. Keep accumulating at declines.
Ironically, share price of Quintegra Solutions (34.00) has almost crashed to one tenth since it lost nearly 90% from its high of Rs 247 during Jan’08. Company’ss broad capabilities include application management, product engineering, enterprise solutions such as SAP, testing & validation, technology consulting, professional services and proprietary product suites. Presently, company focuses on six main business verticals including BFSI, Heatlhcare, Education & Training, Engineering Services, Logistic and Telecom. Unlike other companies, Quintegra has invested in creating products in its chosen verticals. It has more than dozen offices spread across USA, UK, India, Germany & Africa with five world class offshore development centers in India, Singapore and Malaysia. Of late company has ventured into Knowledge Process Outsourcing Services by setting up additional 70,000 sq ft of IT space in Chennai. As a strategy to grow inorganically, in Oct 2007 it acquired M/s. PA Corporation, USA which specializes in high end IT consulting and leadership in middle-space IT services. Financially, for FY08 Quintegra’s reported an impressive top line and bottom-line of Rs 390 cr and Rs 35 cr respectively thereby posting an EPS of Rs 13 on equity of Rs 26.80 cr. At current market cap of merely Rs 90 cr its worth a punt.
WS Industries (48.00) is a leading manufacturer of high voltage electro-porcelain transmission insulators and sub-station insulators. It deals in other products as well like dropout fuses, isolators, lightning arresters, coupling capacitors, capacity voltage transformers, instrument transformers, line traps and reactors. To cater the rising demand, company is setting up a Greenfield plant in Visakhapatnam to double the manufacturing capacity of substation insulators to 16,000 tons. The project is almost completed and expected to commence shortly. Besides, its transmission insulator unit with installed capacity of 8,000 tonne is running at full capacity. Lately company has also ventured into turnkey project execution i.e. designing, execution and construction work of transmission lines of below 220 KV. Meanwhile, its subsidiary company has completed the construction of the 1st phase (300,000 sq ft) of the Software Technology Park in association with TCG group. So from current year it will start generating additional lease rental of approx Rs 3 cr. With current order book of nearly 135 cr, company is expected to report a turnover of Rs 275 cr and profit of Rs 16.50 i.e. EPS of Rs 8 for FY09. A good bet in power ancillary space.
Indo Asian Fuse Gear (62.00) manufactures wide range of electrical circuit protection equipment including distribution boards, switch boards, switch panels, fuse switches, MCCBs, HRC Fuses, MCBs, RCDs, etc. Besides, it’s one of the largest manufacturers of CFLs and MCB’s in India. To capitalize the ongoing boom, it is diversifying into power distribution business on behalf of state electricity board on franchise basis. Lately, it has forayed into cables & wires manufacturing business as well with a planned investment of 100 cr in phases. For the higher end segment, company is setting up a plant in Haridwar under a joint venture with Simon Holding (Spain) for manufacturing home and building automation products for the first time in India. At the same time it is putting up a facility in Saudi Arabia thru a tie up with Saudi National Glass for production of Compact Fluorescent Lamps (CFLs) and High Intensity Discharge Lamps (HID Lamps). For FY09 it is expected to clock a turnover of Rs 325 cr and PAT of Rs 15~16 cr on a conservative basis which works out to an EPS of Rs 10 on current equity of Rs 15.30 cr. At current market cap of Rs 100 cr its available fairly cheap.
Ironically, share price of Quintegra Solutions (34.00) has almost crashed to one tenth since it lost nearly 90% from its high of Rs 247 during Jan’08. Company’ss broad capabilities include application management, product engineering, enterprise solutions such as SAP, testing & validation, technology consulting, professional services and proprietary product suites. Presently, company focuses on six main business verticals including BFSI, Heatlhcare, Education & Training, Engineering Services, Logistic and Telecom. Unlike other companies, Quintegra has invested in creating products in its chosen verticals. It has more than dozen offices spread across USA, UK, India, Germany & Africa with five world class offshore development centers in India, Singapore and Malaysia. Of late company has ventured into Knowledge Process Outsourcing Services by setting up additional 70,000 sq ft of IT space in Chennai. As a strategy to grow inorganically, in Oct 2007 it acquired M/s. PA Corporation, USA which specializes in high end IT consulting and leadership in middle-space IT services. Financially, for FY08 Quintegra’s reported an impressive top line and bottom-line of Rs 390 cr and Rs 35 cr respectively thereby posting an EPS of Rs 13 on equity of Rs 26.80 cr. At current market cap of merely Rs 90 cr its worth a punt.
WS Industries (48.00) is a leading manufacturer of high voltage electro-porcelain transmission insulators and sub-station insulators. It deals in other products as well like dropout fuses, isolators, lightning arresters, coupling capacitors, capacity voltage transformers, instrument transformers, line traps and reactors. To cater the rising demand, company is setting up a Greenfield plant in Visakhapatnam to double the manufacturing capacity of substation insulators to 16,000 tons. The project is almost completed and expected to commence shortly. Besides, its transmission insulator unit with installed capacity of 8,000 tonne is running at full capacity. Lately company has also ventured into turnkey project execution i.e. designing, execution and construction work of transmission lines of below 220 KV. Meanwhile, its subsidiary company has completed the construction of the 1st phase (300,000 sq ft) of the Software Technology Park in association with TCG group. So from current year it will start generating additional lease rental of approx Rs 3 cr. With current order book of nearly 135 cr, company is expected to report a turnover of Rs 275 cr and profit of Rs 16.50 i.e. EPS of Rs 8 for FY09. A good bet in power ancillary space.
Indo Asian Fuse Gear (62.00) manufactures wide range of electrical circuit protection equipment including distribution boards, switch boards, switch panels, fuse switches, MCCBs, HRC Fuses, MCBs, RCDs, etc. Besides, it’s one of the largest manufacturers of CFLs and MCB’s in India. To capitalize the ongoing boom, it is diversifying into power distribution business on behalf of state electricity board on franchise basis. Lately, it has forayed into cables & wires manufacturing business as well with a planned investment of 100 cr in phases. For the higher end segment, company is setting up a plant in Haridwar under a joint venture with Simon Holding (Spain) for manufacturing home and building automation products for the first time in India. At the same time it is putting up a facility in Saudi Arabia thru a tie up with Saudi National Glass for production of Compact Fluorescent Lamps (CFLs) and High Intensity Discharge Lamps (HID Lamps). For FY09 it is expected to clock a turnover of Rs 325 cr and PAT of Rs 15~16 cr on a conservative basis which works out to an EPS of Rs 10 on current equity of Rs 15.30 cr. At current market cap of Rs 100 cr its available fairly cheap.
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