DP Money Watch - Compucom Software takes rapid strides in IT Education
May 5, 2009 by manish
Filed under Business, Financial Markets
Compucom Software(CSL) was founded in 1990 in New Jersey USA.It started its Indian Operations in 1994 in Jaipur, Rajasthan. The Company operates in the following verticals:
1.Software Design, development and maintenance
2. IT Training and Education
3. e-Governance Initiatives
4. Resource Supplementation
5. BPO and Call Centre
CSL has reported excellent financial results for the year ended 31st march 2009.( click here for details). Revenue from IT Education and Training has spurted by 500 % from Rs. 6 crores to Rs. 36 crores YOY. Gross Profit has gone up by 200% from Rs. 8.5 crores to Rs. 26 crores, while PAT has grown by 75% from Rs. 5 crores to Rs. 8.9 crores. This is because of much higher allocation to Depreciation of Rs.11 crores in FY 09 vs. Rs. 1.9 crores for FY08.
CSL has an equity of Rs. 10 crores divided into 5 crore shares of Rs. 2 FV. For FY 09 EPS is Rs. 1.76 and share is available at P/E of 5.2. Going forward EPS is expected to double during FY 10 and forward discounting will be about 2.5. This makes the share at a CMP of Rs.9 a screaming BUY.
This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information
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posted by manish in Business, Financial Markets |
Ashok on Wed, 6th May 2009 11:59 am
Thanks Manish.
I have also been tracking Compucom SW for sometime now and find that the promoters are also buying from the mkt.Promoters along with the CSL employee welfare fund have increased their stake in the co. from 72 % 2 years back to a very healthy 77 % as per the latest shareholding pattern.
In the Financials, as you have rightly pointed out ,the mgt. seem to have shown less profits after tax by providing higher depreciation of Rs. 9 crores.
A Co. with a market cap of Rs. 50 crores ( enterprise value of Rs. 60 crores)and generating Rs. 26 crores gross profits is definitely a steal. Declaration : I HOLD