Friday, January 29, 2010

Stock Idea: Sasken Communication Technologies Ltd.

Sasken Communication Tech. — BUY—180—INR
Sector — Software (Telecom)
Regd.Off.— 139/25, Ring Road, Domlur, Bangalore – 560071
Listed — NSE, BSE.
Company Overview—
Company was incorporated in the year 1989 to focus on products and services in the single vertical of telecom. Company caters to semi-conductor and handset makers, and OEM customers like Nortel, Nokia and Alcatel in telecom. It also has a presence among service providers. Sasken is an embedded telecom solutions company that helps businesses across the telecom value chain accelerates product development life cycles. It helps client’s speed product development through a unique combination of ready to use technology blocks and services along with unparalleled telecom experience. Some of the global Fortune 500 customers like Nortel, Nokia, Motorola etc. are part of Sasken's esteemed customer profile. Sasken employs around 3000 people at offices in India, Canada, China, Germany, Japan, Sweden, UK and the U.S. Committed to innovation, Sasken works with terminal device manufacturers, network equipment manufacturers, semiconductor vendors and network operators to help them get to market ahead of the competition and stay focused on new product development and manufacturing. With deep understanding of the telecom industry, access to current and emerging technologies, mature development processes, global resources and a proven track record, it creates complete solutions for clients succeed. Company has comprehensive range of application solutions and services, backed by a proven reputation for expert support and high quality. Company is having ISO 9001 certification and SEI CMM Level 5 recognition. Supporting development of global wireless communications Sasken works with premier technology groups including the ITU, ETSI, GCF, PTCRB, ATM Forum, DSL Forum, OFDM Forum, UWCC and the SDR Forum.
Products & Services—
Company provides services, solutions and technologies to customers across the telecom value chain. It caters to large network equipment manufacturers wireless and wireline, semiconductor manufacturers supplying to the telecom market, wireless terminal product vendors and test and measurement equipment providers, worldwide. Our Subsidiaries extend our offerings to network equipment manufacturers to service their non-embedded or non R&D outsourcing requirements. Focused on wireless embedded software for the last 16 years, Products Division of Sasken offers customers software solutions that encompass all sub-systems of the mobile phone. Managing software complexities on a mobile phone with an objective to maximizing profitability, minimizing time to market and creating phones that are differentiated that is offered by Sasken Products Division provides to customers.
Company offers services for planning, deployment and managing wireless networks to NEMs and wireless service providers. Sasken also offers software services for development and maintenance of various software components required for implementing a network support system in the field. Company has extensive experience in the wireless and wire line networks and across all software components.
Company powers the Semiconductor industry with IC Design services and Silicon Platform Software services. While the IC design Services include design, verification and integration of integrated circuits, the SPSS encompass design, testing, maintenance/sustenance and integration of software around the chips. Company also offers software development and sustenance services to Test and Measurement companies.
Valuation—
At current market price, stock is trading at 5.94 P/E multiple of its FY2011 estimated EPS. We recommend investors to buy "Sasken Communication Technologies Limited" for medium to long-term investment horizon.
Source: Internet (Valuenotes by Abhishek Jain)

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