BSE Code: 590051
CMP: 304
CMP: 304
It is into
information management (IM) and business intelligence (BI) services. Saksoft
has successfully transformed its business by acquired Acuma Solutions in 2006
and now recently took over Three sixty logica testing in 2014 which are into
testing and QA across various verticals of industry, customers and geographies.
It is now fully into data warehousing, business intelligence and data analytics….
It is focusing on mobile applications as well which is a big positive as there are only a few established and branded players in India in this segment.
Big Data Growth Projections:
Big Data Growth Projections:
Saksoft
caters to banking, financial, travel & tourism, manufacturing, retail,
telecom. Logistics.. It was founded by Mr Aditya Krishna an ex citi bank
executive who was one of member of team which introduced citi bank credit cards
business in India successfully.
Revenue
Split up: 47% from UK, 38% from US, 14% from Rest of World.
Technology
partners: SAP, Tibco, Logi Analytics etc(all big names in data management)
EPS has
increased at the rate of 34% CAGR over 2011 to 2015
Debt to
Equity ratio decreased from .96 to .27 (company is reducing debt yoy)
Regular dividend
paying company..10%, 10%, 20%, 25%, 25% in fy10,fy11,fy12,fy13 and fy14
respectively.
Turnover
got more than doubled from 1050mn to 2315mn in 5 years…
EBIDTA
margin & NP grew at rate of 26% & 35% respectively since last 5 years
ROE in
double digit. Increasing yoy from 10% in fy10 to 15% in fy15
Despite of
investing 1000mn in aquisititions in recent past, Saksoft managed to reduce the
debt substantially…
It has
earned the loyality of customers as 50% of its customers are working with them
from last past 5 years continuously….
Total
headcount of 680 employees across UK,US, India and Singapore
Risks which
can come at anytime in an IT Company
Compliance:
Saksoft major chunk of revenue comes from US and UK and it has not sensored by
any customer in these countries. It gives confidence that company is taking all
measures to mitigate the compliance related risks
Big Data is
driving the profitability of most of micro and midcap IT Companies since last 2
years and this business segment is poised to give exponential profits to organizations
who are fully into it. In last 2 years there were couple of companies who are
into big data, the stock prices of them gave 2000% returns. Saksoft is still
undiscovered. Promoter shareholder is very good and most of open stocks are in
strong hands. Liquidity is very less. There is no FII and DII holdings which is
a big positive.
Recently stock prices has witnessed a sharp jump upwards(including many upper circuits), but i think there is a lot of more to come.
Next 2
years would be game changing for this organization which is sailing on big-data and mobile applications business model.
It is just
an analysis and not a recommendation to buy this stock. Please do full due
diligence before buy it.
