Saturday, 7 February 2015

Mindteck (India) Ltd. - RESULT UPDATE

Mindteck (India) Ltd. recommended on 3rd December 2014 @ 67.
Today company has announced December 2014 quarter numbers as follows.
 

 As seen above: Results are flat and in line with our expectations, OPM has improved from 9.85% (DEC-13) to 10.74% (DEC-14).
 
 In the press release: Commenting on the financial performance, Mr. Yusuf Lanewala, Chairman & MD said,
"Through our revenue is marginally lower than last year for the same period, we have improved our operational efficiencies and, as a result, our profitability has increased by 9.5% compared to Dec-2013." He added, "One of they key highlights of this quarter included securing FDA clearance for a key client's pre-hospital vital signs monitor."
 
Keeping in step with the Government of India's smart cities initiative, Mindteck launched Ignite, its versatile internet of things (IoT) platform which integrates with energy consuming devices to form specific smart city solutions. The company also collaborated with SinBerBEST (Singapore - Berkeley Building Efficiency and Sustainability in Tropics), a joint research collaboration between the University of California, Berkeley, Nanyang Technological University (NTU), the National University of Singapore (NUS), and other agencies and groups in Singapore to provide cutting edge technology on building efficiency and sustainability in tropical climates.

The earnings are flat as expected, The profitability of the company has improved.
Key facts as noted in the Press Release are that the company is expecting business from the ambitious smart cities initiative by GoI and also the FDA clearance for a medical device as we know MindTeck is in product engineering business it can help develop smart and nextgen medical devices where the government has recently opened up the FDI to 100%.

All in all the results are good and the future looks bright for MindTeck.
Investors should hold the stock, Fresh entry can be taken at these levels.
 
 

19 comments:

  1. Hiiiii...could you get the timelines and incremental revenue and profits for the projects from the management of the company?

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    1. Not sure about your question, timelines for what?

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    2. Timelines as in when the incremental revenue from these projects would kick in and what would be the impact and growth they are eyeing?

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    3. Which projects? Govt of India is not giving away projects for Smart Cities as of now i believe, a clear direction on this plan will be in the budget i presume.

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    4. I am talking about the collaboration with the Singapore company and the medical device FDA with key client...

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    5. Singapore company research collaboration revenue not known, fda approved medical device revenue must be realized in this quarter, important point is that mindteck with its product engineering division can help in creating medical devices in India where govt. has approved 100% fdi limit as in India there is extreme shortage of medical devices and hospitals/clinics need to import it from abroad.

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  2. God afternoon ace sir, Where do u see time technoplast in one year?? Fundamentals seems ok. IS a target of 150 possible in one year????/

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    1. Last time i checked the stock looked ok... i don't have anything more to add, cannot give you target for this as i am not strictly tracking.

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  3. Sir your opinion on Water base & dhunseri tea please comment
    Regards
    Anurag

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  4. Sir what's your view on engineers India and Crompton greaves 3 months from now

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  5. Dear Ace ...this is with reference to ybrant..
    It is not a single instant .Continuously in past four quarters promoters are reducing their stake . More than that , even if I accept your argument of pledge invocation ,my question is Why the promoters of a company with turn over of more than Rs.1700 Cr and a net profit of Rs.220 Cr is not in a position to arrange few crores to repay their debt and avoid pledge selling . ? .One more doubt ,if this selling is due to pledge invocation why it not happened when its share price fall to Rs.2.50 and happening only when this share price starts to rise ?.

    Another important point is ,as per my understanding if any of the promoter entity sold shares,even if it is a single share ,it should be disclosed in the prescribed format to exchanges where its shares are listed . In case of this company , one of the promoter entity Redmond Investments Ltd reduced 6000000 shares in last four quarters which is known from share holding pattern .But I could not find disclosures filed in this regard so far in BSE. What would you say ace on it...i think like satyam promoter are manipulating books...please publish this in ur blog and clarify it...

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    1. 1: Promoter stake has increased in Dec quarter
      2: I never said that pledge invocation is going on, That were market rumors which management clarified.
      3: Don't know why redmond is selling, this can obviously be a issue limited to redmond the company.
      4: There is a certain criteria for disclosure to BSE in-terms of total percentage of equity bought/sold maybe if the said criteria doesn't meet you can get to know about holding shift only in SHP.
      5: I personally do not suspect satyam type of scam, Are you saying it just coz it has hit a lower circuit or some fundamental research you did? Kindly elaborate.

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  6. Hello Shyam, To add to ACE's response, I think its going to be extremely surprising if a satyam type scam is going on. Since satyam a lot has changed in Corporate Act 2013 making it extremely difficult, if not impossible to cook books.
    Promotors open businesses to make money. And will sell shares to reap investment. Am hoping thats what Redmond did, but in quantities that did not require filing.

    Your observations are valid and would like to hear how you have concluded a satyam like scam, anything in the annual report or results that is out of the ordinary?

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  7. I am talking about the collaboration with the Singapore company and the medical device FDA with key client...mindteck

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  8. What you thik of market?? How much down side possible? ?

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    Replies
    1. not interested in predicting the markets.

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