Thursday, August 27, 2009

Stock Idea: Infotech Enterprises Ltd.

Company Overview—
Infotech Enterprises Ltd , promoted by B V R Mohan Reddy was incorporated as Infotech Enterprises Pvt Ltd in August 1991 for creating facilities for software development and its export. Commercial operations began in September 1992. Company went public in March 1997. Company’s first project on creation of facilities for Computer Aided Design and Drafting and Geographical Information Systems (GIS) was successfully completed in September 1992, with aid from IDBI under its Venture Capital Scheme. Main areas of the company are Computer Aided Design (CAD) and GIS. It provides technical software services and has diversified into Business Software Services and Net Services (Internet and Intranet-related services). It also has Engineering Services and Geo-Engineering divisions. Company has strategic alliances and business partners in USA, Europe, Australia and Japan.
Products & services—
Infotech Enterprises is a global software services company specializing in geospatial, engineering design and IT solutions. Company provides its services to improve companies’ speed to market, optimize resources and reduce costs, thereby creating measurable business impact. Key areas of its services are as follows—
Geographic information system—
Infotech has carved a niche for itself in the GIS market space and is recognized as a leading global GIS service provider. Infotech possesses strong domain knowledge and complete solution capability and is focused on the creation of enhanced value for its customers. Infotech has over 1000 GIS professionals working round-the-clock providing over two million person hours of experience in GIS services. Infotech is one of the largest offshore providers of digital Photogrammetry services. Based on extensive technical resources, infrastructure and global delivery capability, it manage, execute and deliver large projects to customers worldwide, providing them the benefits of high-quality, cost-effectiveness and reliable delivery. It offers complete end-to-end GIS solutions to help organizations scope, design, build and manage their GIS. Infotech provides the Managed Application Service to all clients who have had a bespoke application built for them. The MAS is an all-encompassing agreement that covers every aspect of support and maintenance specifically within the GIS field. Infotech provides a wide range of training courses in the latest GIS software. Courses are interesting and relevant to provide users with the confidence and skills to make desktop mapping work for the organization.
Engineering Design—
Infotech offers integrated engineering design solutions in focused domain areas. Infotech has developed robust cross-border collaborative processes that enable a seamless integration with customer design team. Company is able to undertake complex engineering tasks and effectively deliver high quality results that are critical to its customers.
IT services—
Infotech provides services in the areas of ERP, EAI, Business Intelligence, e-biz, Web enabling of business processes as well as maintenance/enhancement of legacy systems, Corporate Portals and Knowledge Management. It is enhancing the customers Business Processes using technology as an enabler to create competitive advantage. Its platform expertise includes IBM, Microsoft, Plum Tree, Seebeyond, SAP, Oracle, SUN and BEA, Documentum.
Electronic Design services—
Infotech has executed projects for global customers enabling them to reduce time to market, optimize resources and reduce costs. Its EDS team is well experienced in design of Analog, Digital and Real time embedded systems and is capable of developing products using a variety of 8, 16 and 32 bit Micro-controllers and DSPs from Analog Devices, Motorola, Microchip, Intel, Atmel, NEC, Hitachi, Texas Instruments etc. It offer services in the following areas: Product Development, Re-Engineering, Firmware Development, Software Development, PCB Design, Verification and Validation.
Offshore outsourcing—
Offshore outsourcing is emerging as a flexible and powerful approach that companies can use to achieve a wide range of tactical and strategic aims. Many organizations are outsourcing their software development, testing, support, technical design, application and data management, thereby enabling them to focus more on understanding customer needs, achieve better product positioning and enhance customer satisfaction.
Recent Developments—
Infotech Enterprises announced that it has signed a Memorandum of Understanding (MoU) with Eurocopter a Germany-based helicopter manufacturing Company, for the attack helicopter program of the ministry of defence, Government of India.
Infotech Enterprises has announced that its subsidiary, Infotech Enterprises Benelux BV, has signed an agreement with the Dutch telecommunications engineering and technology company Volker Wessels Telecom to provide a new service offering in Telecommunications engineering to telecommunications industry world wide. The company specializes in engineering design services (EDS) like mechanical and electronic design, technical publications and engineering software development.
Infotech Enterprises, a global technology solutions provider with headquarters in Hydrabad, India announced that it has inked a 5 year contract with inCONTROL Tech (iTEC) of Malaysia to implement an Enterprise GIS information System for Tenaga National Berhad (TNB) which is the largest Electric Utility in Malaysia. The implementation is a part of TNB’s long term GIS roll out plan for all their circles nationwide. Under this project, Infotech and iTEC would be offering a service oriented architecture (SOA) based solution for enterprise GIS information management to TNB. This implementation would help integrate and streamline business processes across various functions within TNB.
Valuation—
At current market price, Stock trades at attractive valuation of 8.67 multiple of its FY2010 Estimated earnings par share. We recommend investors to buy “Infotech enterprises” with medium to long-term investment horizon.
Source: Internet (By Abhishek Jain)

Stock Idea: Prithvi Information Solutions

Prithvi Information Solutions: Quick turnaround
The mind-boggling Q1FY10 results of Prithvi Information Solutions Ltd. (PISL) (Code: 532675) (Rs.71.05) went unnoticed by marketmen. The company posted a net profit of Rs.17.6 cr. against a net loss of Rs.7 cr. in Q1FY09. PISL is an IT enabled services provider with four segments-technology outsourcing, business intelligence, network solutions and KPO (knowledge process outsourcing). Incorporated in 1998 as Prithvi Information Solutions Pvt. Ltd. in Hyderabad, it was converted into a public limited company in 2000. PISL started its business in 1998 with outsourcing contracts for offshore soft ware development and has over the years evolved into an outsourcing service provider with a number of services. Promoted by Ms. Madhavi Vuppalapati and Mr. Satish Kumar Vuppalapati, it tapped the capital market in July 2005 with an IPO of 50 lakh shares at Rs.270 per share.
PISL is now a global provider of customised solutions and software services to clients in USA. It provides software solutions across a host of technologies and platforms. Its scale of operations is such that it has 6 offices in USA alone, one each in the UK and Singapore, besides two global delivery centres in Hyderabad and one in Bangalore. Other representative offices are in Bahrain - Middle East, Johannesburg - South Africa and Brazil - South America. PISL has domain expertise in various sectors such as Banking, Financial Services & Insurance (BFSI), Technology,
Telecom, Healthcare, Manufacturing and E-governance. Basically, it has three strategic business units – technology outsourcing, process outsourcing and intelligence solutions, jointly addressing a wide spectrum of clients.
Some of its clients are Fortune 500 companies with 15 big ticket clients with over US $10 billion in sales. Its main clients are John Hopkins, T-Mobile, PNC Bank, Pittsburg Medical Insurance, Meckson Pharma and Pittsburg Plate Glass of USA. PISL’s service offerings span the complete software lifecycle including consulting, architecture, development, testing, maintenance, migration, re-engineering and integration services.
For FY09, PISL had posted 42% lower net profit at Rs.36.7 cr. on 78% higher sales of Rs.1976 cr. For Q1FY10, sales went up by 2% to Rs.388 cr. and net profit was Rs.17.6 cr. against a net loss of Rs.7 cr. in Q1FY09. Its equity capital is Rs.18.1 cr. and with reserves of Rs.405 cr., the book value of the share works out to Rs. 234. The promoters hold 32.6% in the equity capital, foreign holding is 9.2%, PCBs hold 15.2% leaving 42.6% with the investing public.
Last year, PISL acquired Effigient, USA for $1.89 million. Effigent’s niche consulting business division is an Apple Professional Services partner that provide consulting services in the areas of Apple and Open Source technologies that address the growing demand for IT services for the Mac OS X platform and related technologies. It also acquired assets of Strategic Research and Development Group (SRDG), USA at US $0.85 million. SRDG provides high-end consulting in business transformation services with IBM as a partner and directly to customers such as Fireman's Fund, AIG and the Citigroup. These strategic acquisition augment PISL’s IT services portfolio and strengthens its competitive position by offering clients the opportunity to seamlessly develop and deploy Mac based applications into their enterprise solutions portfolio. PISL is actively looking for further acquisitions in USA and the Middle East. It has a well-planned strategy to diversify geographical presence by foraying into the high-growth regions of India and the Middle East. PISL has also entered the high-end Knowledge Process Outsourcing (KPO) segment and has a significant presence in the Network Solutions space. With India well-positioned to seize a major chunk of the KPO pie, PISL stands to gain by its diverse offerings and early mover advantage. KPO is expected to be a $17 billion industry by 2010 and India hopes to
garner a whopping 70% share of the global market at $12 billion. KPO encompasses the whole gamut of higher valueadded knowledge services such as investment research, biotech research, engineering research, complex analytics, patent filings, legal outsourcing, etc. PISL was ranked as the 14th largest IT service exporter in India in FY08 by NASSCOM and Deloitte’s Technology Fast 50 India in 2008. Its recent focus to develop network solutions and KPO can reap a rich harvest in the next 2-3 years. Moreover, an increase in its offshore revenues will help realize strong returns. For FY10, net profit is expected to be Rs.55 cr. on sales of Rs.1800 cr., which would give an EPS of Rs.30.4. At the CMP of Rs.71, the share is trading at a P/E of 2.3 on its FY10 estimated EPS of Rs.30.4. The share is recommended with a target price of Rs.120 at which it would trade at a conservative P/E of 4. The 52-week high/low of the share has been Rs.146/30.
Source: Internet (Moneytimes)

Intraday Trading Calls for 27th August

Indian Stock Market may open positive and remains flat to negative but with very high volatility.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME

TRIGGER

PRICE

TARGET 1

TARGET 2

JP ASSOCIATES

Buy Above

222.60

228.20

234.00

Sell Below

219.35

213.25

208.00

GTL INFRA

Buy Above

39.10

41.25

43.00

Sell Below

37.50

36.10

34.00

IRB INFRA

Buy Above

208.25

213.75

220.00

Sell Below

205.15

200.10

195.00

IDFC

Buy Above

131.60

136.20

141.00

Sell Below

129.20

125.10

121.00

BRFL

Buy Above

192.75

197.70

204.00

Sell Below

189.50

185.20

180.00

GMR INFRA

Buy Above

143.25

147.25

152.00

Sell Below

140.35

136.45

132.00

NAGARJUNA CONSTRUCTION

Buy Above

137.60

141.55

147.00

Sell Below

135.10

131.60

127.00

GOOD LUCK

Disclaimer

The information in this publication is provided by http://www.moneybazzar.blogspot.com/ is intended for use for Readers & Traders . Every effort is made to provide accurate information, but http://www.moneybazzar.blogspot.com/ cannot guarantee the accuracy of the information or of the market analysis. This is a newsletter and is for informational purposes only. It is not a solicitation or offer to buy or sell futures. There is a high risk of loss in trading futures. You should not trade with money that you cannot afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this newsletter. The past performance of any trading system or methodology is not necessarily indicative of future results.



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