NUCLEUS SOFTWARE EXPORTS LTD (Rs 117)
(BSE Code- 531209 NSE Code- NUCLEUS)
(P/E- 9, Cash per share- Rs 37.75, Market Cap- 377 cr.)
Nucleus Software Exports(NSE) has been providing innovative and pioneering products and software solutions since 1986. Its core competence is in banking and financial services spanning areas of core banking, retail & corporate banking, credit cards, cash management, relationship banking, financial credit risk management (CRM), credit risk & appraisal, trade finance, data warehousing and analytics among others. Nucleus, with its flagship product FinnOne™, today has over 134 clients across the globe. It is a fast - growing player with a leadership position in regions spanning Asia Pacific, Europe, Middle East, Africa, and America. Nucleus also commands a leadership position in the domestic retail banking space, with a client-base comprising most leading banks of India. FinnOne™ is an integrated suite of applications designed to support the whole spectrum of business offerings of banks and financial institutions. Nucleus Software Exports has also successfully consolidated its position, as a technology leader in Japan, the Middle East, Africa and South East Asian markets.
Nucleus Software has an array of products, which includes FinnOne™, Cash@WillTM and other service offerings. FinnOne™ is the flagship product of Nucleus Software and consists of modules like Customer Acquisition System, Loan Management System, Collections, General Ledger, Forecaster and Finance Against Securities. Cash@WillTM caters to the cash management business and has key modules like Collections, Payments and Liquidity Management.
Nucleus Software's consolidated revenue from software products and software development services for the year ended March 31, 2009 increased 14% to Rs. 328.40 cr.. Product business revenue for the year stood at Rs. 219.96 cr.. PAT stood at Rs. 32.26 cr. in comparison to Rs. 61.74 cr. last year. EPS stood at Rs. 9.97 on a equity of 32.37 cr.(Promoters’stake-59.55%) and a dividend of 25% has been declared. Cash and Bank Balances’ and ‘Current Investments’ stood at Rs. 122.18 cr. on March 31, 2009. Nucleus bagged 29 new orders for implementing 96 product modules of the FinnOne™ Suite and Cash@WillTM in the year 2008-2009. Product orders were bagged from leading financial institutions across the globe. One of the biggest IP creators of the country, Nucleus, added 20 new clients even in this extremely uncertain global economic scenario. Nucleus further strengthened its global partners network, adding 8 new alliances across LATAM, Africa and SEA. Nucleus’ flagship product FinnOneTM has been ranked as ‘World’s No.1 Selling Lending Software Product’ by IBS publishing, UK, 2009. The company’s order book position stood at Rs 320 cr. as on March 31, 2009, including Rs 243 cr. product business and Rs 77 cr. of project and service business.
For the half year ended Sept. 2009, Nucleus has posted net revenues of Rs 151.29 cr.(down 4.4%) and net profit of Rs 20 cr.(up 65%) on consolidated basis.. The half yearly EPS stood at Rs 6.2. Going forward, the company is optimistic on its products business and foresees increasing demand for such niche products around the globe. The Company continues to focus and invest on development of software products for Banking and Financial Institutions. Nucleus Software foresees a strong demand for its niche product from across the globe. Nucleus has further strengthened its global partners network adding 8 new alliances in the FY 2008-09. As the global lending market is evolving, Nucleus finds itself strategically placed with wide array of products to cater to the demand. Nucleus believes that in future, Indian product companies will gain greater market share in Global software markets and is all set to capitalize on the upswing in the industry. In a bid to improve margins, the company plans to cut costs by 10% in FY10 by slashing travel and communication expenses, shifting people from onsite to offshore locations, and axing 50 contractual positions. The company expects the cost-cutting measures to yield savings of about Rs 25 cr. in the current financial year.
At current levels the stock trades at about 9.3 times expected FY10E earnings(Rs 12- Rs 13). The company’s decent order book position, cash position and low valuations make it an attractive buy on declines. Investors can start accumulating the stock at current levels and add more on declines for decent returns of 35%-40% over the next 6-8 months.
Source: Internet (Valunotes by Sanjay Chhabria)
(BSE Code- 531209 NSE Code- NUCLEUS)
(P/E- 9, Cash per share- Rs 37.75, Market Cap- 377 cr.)
Nucleus Software Exports(NSE) has been providing innovative and pioneering products and software solutions since 1986. Its core competence is in banking and financial services spanning areas of core banking, retail & corporate banking, credit cards, cash management, relationship banking, financial credit risk management (CRM), credit risk & appraisal, trade finance, data warehousing and analytics among others. Nucleus, with its flagship product FinnOne™, today has over 134 clients across the globe. It is a fast - growing player with a leadership position in regions spanning Asia Pacific, Europe, Middle East, Africa, and America. Nucleus also commands a leadership position in the domestic retail banking space, with a client-base comprising most leading banks of India. FinnOne™ is an integrated suite of applications designed to support the whole spectrum of business offerings of banks and financial institutions. Nucleus Software Exports has also successfully consolidated its position, as a technology leader in Japan, the Middle East, Africa and South East Asian markets.
Nucleus Software has an array of products, which includes FinnOne™, Cash@WillTM and other service offerings. FinnOne™ is the flagship product of Nucleus Software and consists of modules like Customer Acquisition System, Loan Management System, Collections, General Ledger, Forecaster and Finance Against Securities. Cash@WillTM caters to the cash management business and has key modules like Collections, Payments and Liquidity Management.
Nucleus Software's consolidated revenue from software products and software development services for the year ended March 31, 2009 increased 14% to Rs. 328.40 cr.. Product business revenue for the year stood at Rs. 219.96 cr.. PAT stood at Rs. 32.26 cr. in comparison to Rs. 61.74 cr. last year. EPS stood at Rs. 9.97 on a equity of 32.37 cr.(Promoters’stake-59.55%) and a dividend of 25% has been declared. Cash and Bank Balances’ and ‘Current Investments’ stood at Rs. 122.18 cr. on March 31, 2009. Nucleus bagged 29 new orders for implementing 96 product modules of the FinnOne™ Suite and Cash@WillTM in the year 2008-2009. Product orders were bagged from leading financial institutions across the globe. One of the biggest IP creators of the country, Nucleus, added 20 new clients even in this extremely uncertain global economic scenario. Nucleus further strengthened its global partners network, adding 8 new alliances across LATAM, Africa and SEA. Nucleus’ flagship product FinnOneTM has been ranked as ‘World’s No.1 Selling Lending Software Product’ by IBS publishing, UK, 2009. The company’s order book position stood at Rs 320 cr. as on March 31, 2009, including Rs 243 cr. product business and Rs 77 cr. of project and service business.
For the half year ended Sept. 2009, Nucleus has posted net revenues of Rs 151.29 cr.(down 4.4%) and net profit of Rs 20 cr.(up 65%) on consolidated basis.. The half yearly EPS stood at Rs 6.2. Going forward, the company is optimistic on its products business and foresees increasing demand for such niche products around the globe. The Company continues to focus and invest on development of software products for Banking and Financial Institutions. Nucleus Software foresees a strong demand for its niche product from across the globe. Nucleus has further strengthened its global partners network adding 8 new alliances in the FY 2008-09. As the global lending market is evolving, Nucleus finds itself strategically placed with wide array of products to cater to the demand. Nucleus believes that in future, Indian product companies will gain greater market share in Global software markets and is all set to capitalize on the upswing in the industry. In a bid to improve margins, the company plans to cut costs by 10% in FY10 by slashing travel and communication expenses, shifting people from onsite to offshore locations, and axing 50 contractual positions. The company expects the cost-cutting measures to yield savings of about Rs 25 cr. in the current financial year.
At current levels the stock trades at about 9.3 times expected FY10E earnings(Rs 12- Rs 13). The company’s decent order book position, cash position and low valuations make it an attractive buy on declines. Investors can start accumulating the stock at current levels and add more on declines for decent returns of 35%-40% over the next 6-8 months.
Source: Internet (Valunotes by Sanjay Chhabria)
