Congrats Hemant ! ~ You win the gauravblog hamper for TAP GAP Poser 2015 for Intellect Design Arena (FV Rs 5) given at Rs 75.6
I like all three of your selections you entered on December 22,2014 ~ Network 18 at Rs 66,Intellect Design Arena at Rs 75.6 and Pipavav Defence at Rs 39.75 …the latter two have already surged since then.
In fact Intellect Design Arena hit the 20% upper circuit yesterday and it’s already up 53% at Rs 116 levels
Intellect Design Arena is the resulting Company after Polaris Consulting Services demerged it’s products division.
It was listed on December 18, 2014 on both NSE & BSE.
Its an IT Product Company focused on Banking, Insurance and other Financial Services. A uniquely focused Products business, Intellect addresses the needs of financial institutions in varying stages of technology adoption.
Its a one stop shop for banking software products.
It has around 200 clients which includes prestigious central banks such as RBI & Central Bank Of Sweden.
Over 45% revenues is derived from US & Europe and balance from rest of the world
As per the CMD, Mr. Arun Jain, its operating margins are around 50% and can expand further. The company spends around Rs 100 Crs in R&D, which must have not considered while calculating operating margins.
There is a huge scope in India for banking software products. After getting RBI as their client, the company is now posed to exploit the huge potential in PSU banks
The Current Market Cap is @ Rs 1000 crs with revenues of Rs 533 Crs as of June 2014 and cash reserve stood at Rs 311 Crs=> Rs 31 cash per share. Market cap to Sales ratio is 2:1. Networth as of June 2014 is Rs 706 Crs => BV of Rs 71.
Other IT Product Companies like Accelya Kale Solutions @ Rs 990 (FV Rs 10 ~Aviation Software) has a much higher Market Cap (@ Rs 1500 crs)to Sales(@ Rs 300 crs) Ratio of 5:1 and MPS @ Rs 925 (FV Rs 10 ~Accounting & Publishing Software) has a Market Cap (Rs 1556 crs) to Sales (@ Rs 200 rs) Ratio of 8:1
The other 38 entries from 22 of the other participants too were quite interesting and many may continue their handsome 2014 run into 2015 and SpiceJet may just fly at higher altitudes on being bailed out.
It has been observed that low priced scrips have a mathematical potential of high appreciation in % terms.So keep a watch on entries like Odyssey Tech,Suzlon,Vidhi Dyestuff,Prima Plastic & Ram ratna Wires