About The Company & Business
Palred Technologies Ltd formerly known as Four Soft Ltd is headquartered in Hyderabad.
The
company is promoted by Mr Palem Srikanth Reddy (PSR) a former TDP
politician who later formed his own party named Janapalana Party. PSR is
also a well known social worker.
PSR
was lauded by the local media for fighting against Reliance and the
govt. in KG Basin allotment case where he was a petitioner.
The
company basically into IT Services has last year ventured into Business of E-Commerce via its subsidiary.
The company's E-commerce venture is branded LatestOne.com, company also owns the domain named Deals15.com
which it acquired earlier. In IT Services the company is providing
E-Commerce website and software solutions.
The Ace Investor - Value Pick
PALRED TECHNOLOGIES LTD.
NSE: PALRED - BSE: 532521
Company
listed on both NSE and BSE was trading at 21 on GTS day and now trading
around 24 with a market cap of around 100 crores, Stock went down after
touching 52 week high of 29.40 on Friday (24 Apr) due to bad results by
Infosys.
Promoters hold 46.96% stake in the company, increased from 23.92% in Jun quarter.
FIIs
have increased their stake to 1.89% from 0.44 in Jun quarter. Noted
investor Ashish Dhawan owns about 3.44% stake in the company.
The company is debt and pledge free.
LatestOne.com
is a portal mainly for smart-phone, mobile and tablet accessories such
as Covers and Sleeves. The company has recently added a new section
where all type of cables such as (HDMI, VGA, DVI, USB, Adapter, Charger
and many more wide-range of cables can be purchased online by the
tech-savvy Indians.
LatestOne.com
has updated the website and recently added more categories such as
Mobiles,Tablets,Computers,Laptops and more stuff like computing hardware
etc.
This
appears to be in the works as new products have not been added yet and
the company looks aggressive about its plans which is a positive factor.
Major
unlisted players like Flipkart Snapdeal have been cashing on the
E-commerce boom in the country by raising huge sums of money from
private equity investors. However these companies have been reporting
losses due to the wide product portfolio they posses and the marketing
and promotion cost they are incuring.
As
Palred has reported to the exchange, LatestOne.com on April 15th
confirmed to sell more than one lakh mobile covers which should be
enough to give us an idea about the company's and the website's
prospects. Point to note is that LatestOne.com went on air only on
Nov/Dec 2014 and selling more than one lakh Mobile Covers in just under 5
months is a great achievement.
LatestOne.com
has last week announced a tie-up with IndiaPost for pan-India cash on
delivery services which will expand its reach to even rural India.
Almost
everyday a new smart-phone is being launched, according to the data by
International Data Corporation almost 81 million smartphones were
shipped in the year 2014 and smart-phone sales are expected to touch 150
million units mark in 2015. The future growth of the smart-phone market
is expected to be huge since there is a large base of mobile services
users already and the smart-phone adaption is increasing. There are no
IFs and BUTs in the fact that the future of smart-phones and it's proxy
product Mobile Accessories which actually is a high-margin business is
extremely bright.
The
company's promoter are good and have been investor friendly. There is a
share capital reduction planned up by the company which proposes to
reduce the share-capital by 60% which means if you buy 1000 shares of
Palred only 400 will remain in your account and the rest will be
purchased back by the company at 16.50 and the funds will be credited to
your bank account and the market will adjust the price accordingly. I
think it should not be a big issue for the investors since there is more
into the company's fundamentals than what meets the eye from reported
results.
Palred
Technologies which via its subsidiary is into E-Commerce has not
reported its consolidated results for this FY after its E-Commerce
venture started. Which is why you see ordinary financial performance and
a P/E of 38. The company has responded positively to all our queries
and have clarified that they will announce the full year consolidated
results this quarter which means great revenue and earnings of
unreported e-commerce to be reported all of a sudden? This is quite
similar to how Intrasoft suddenly reported a sales boom in Dec quarter
and the share prices shot up from Rs 40 to Rs 310 to trade at a P/E of
almost 70.
E-Commerce
is a sector where there are not too many investment opportunities and
that is why they all are trading at rich valuations. Be it the 70 P/E of
Intrasoft or the 70 P/E of Info-Edge
(Naukri.com/Zomato.com/99Acres.com).
The
E-Commerce boom is much talked about and it is good to find a
opportunity to make a investment in this booming sector. Remember this
company which directly is into E-Commerce is also indirectly into
E-Commerce by selling web development, interface and softwares to
companies which are looking to tap the E-Commerce.
There
are some rumors too that MTR Foods (Giant in it's field) is planning to
launch an online store and has purchased the software and services of
Palred Technologies Ltd.
Technically too the stock is looking extremely bullish.
All
in All i feel, this is one great opportunity for everyone who missed
Intrasoft rally (40 to 310) and at 24 or even at 40 i would not hesitate
to buy Palred Technologies and hold it maybe for some multibagger
returns?
Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”
Disclosure: It is safe to assume that i might have Palred Technologies Ltd in my portfolio and hence my point of view can be biased. Readers should consult their financial advisory before any investments.
:Links:
Name of the winners for Guess This Stock - 2 is posted below as "comment" on this post.
There was huge response to Guess This Stock - 2 but mostly people who guessed it wrong as Axiscades, Prozone Intu and Surana Solar.
ReplyDeleteOver 400 answers were received again out of which only 9 were right.
01 - Ravish
02 - Himanshu
03 - S Iyer
04 - Michael
05 - Vimal Kumar
06 - Kunal Porwal
07 - Pawan Gupta
08 - Vijay
09 - Vikas
Ok so we had 10 right answers, Let us add Mr Satya too!
DeleteThanks Mr. Prem Doshi.
DeleteIn disclosure, you mentioned about Sunteck. Possibly copy - paste error. My name should also be there. I reported wrong email address. I sent at @ blogspot.com email address.
ReplyDeleteSatya
Seeing the boom in ecommerce yes this looks a great find. Thanks for this great report and search . waiting for monday to have some exposure in it . Thanks Ace
ReplyDeletecompany is in the midst of a scheme of arrangement.As per this scheme company's share capital will be reduced .Company will took back 60 % of shares and pay Rs.16.50 for each shares . If I am correct, as per this scheme ,if you have 100 shares , you will left with 40 shares + Rs.990 ( 60*16.5) which is equal to strightaway booking a loss of approx Rs.10 to CMP on each share for 60 shares out of 100 . This will increase the avarage cost of your remaining holding upto that extent . For this scheme of arrangement ,stock may even delist from exchanges for a certain period and re-listing price may depends on the market mood prevailing at that time
ReplyDeleteI have seen a reply from one of the stock adviser What is your view on this.
Thanks
Amudhan
Why should the stock must delist for this? And even the face value is not being changed here.
DeleteRegarding the share capital reduction, It is a non-issue, The straight-away loss claimed by this advisor is non existent since the EPS will multiply due to capital reduction and the price will be adjusted accordingly by the market as it will be on the record-date.
Someone is making mountain out of a molehill.
Update: Lot of confusion and unwanted discussion is being caused regarding the capital reduction.
ReplyDeleteI have covered this aspect already in this post, Even the record-date hasn't come yet and it is not happening right here right now, Even if happens now.. When equity will be reduced the EPS will multiply and it is obvious that market will price it accordingly, Please see the capital reduction done in other companies in the past to check how the market adjusts the price.
The company is a black hole of money. Salesdown, no profits, negative cash flows, eps of - 8.45, and still a pe of 34!!! While the industry avg is12!! Where's the value let alone margin of safety.
ReplyDeleteOk then don't buy.. And i bet you didn't even read the blog post.
DeleteSir please your view upon dish TV and Phillips carbon thanks
ReplyDeleteNot tracking both
DeleteDear Sir,,
ReplyDeleteAfter reading the post for MTR Tie-up
But MTR has not mentioned that is has tied up with PALRED Technologies
infact it has not mentioned any IT companies name
It is a market rumor, company didnt reject that when i tried to get a clarification.
DeleteSir,
ReplyDeleteI am new to this blog, I humbly request you to kindly express your view on SKM Egg Products. Thank you very much Sir, God bless you.
Its a stock already posted here.. Bullish on it.
DeletePlease answer my above quiery
ReplyDeleteParnax labs touched a year low @23.75 against your reco price of Rs. 41/- . Is it buy at CMP or wait for some more correction . pls advice.
ReplyDeleteThanks
Amudhan
I don't think anyone has changed fundamentally in this company, Good buy for me.
DeleteWill update further after march quarter results are out.
Hi sir ,
ReplyDeleteCan I buy nadan denim pls share your opinion
Regards
Anurag
I am not closely tracking it
DeleteUpdate: check out the screen of email rcvd from the company confirming consolidated results announcement; http://s9.postimg.org/s7zm9otvz/palred_technologies_consolidated_results.png
ReplyDeleteWhat is your call on dynacons tech and system?
ReplyDeleteNot tracking these two penny stocks.. Not good choice for investment.
DeleteThanks now please your view upon ILFS engineering
ReplyDeleteConcerned about the debt.. bit too much debt.
DeleteFriends please note fake clone profiles on our display name is coming on Moneycontrol Message Board, Please beware...
ReplyDeleteMy only mmb profile is -
http://mmb.moneycontrol.com/india/messageboardblog/boarders/746865616365696e766573746f72
Dear Sir,
ReplyDeleteRicha has come down heavily from Rs.34/- to 26.7 today. I am holding 5000 share @32.50/-. can i average at the cmp. why the sudden fall comes even today smallup indices up 1.4%. pls advice.
Thanks
Amudhan
It will bounce back :)
DeletePalred shows 82 thousand sellers pending order today but when market depth is opened the seller orders are no where to be found anywhere near CMP, that means huge number of sell orders put at Upper Circuit Price to put pressure on the stock.
ReplyDeleteJust for info, putting sell orders on a stock in large quantities which you don't hold with intention to cancel it later on and doing it regularly is a crime according to Securities Law in our country.
DeleteThose who are doing in Palred better be careful.
What about Gujarat Automotive Gears? Any hopes after this quarterly results?
ReplyDeleteYes
DeleteSir is mic electronics a good buy and ur view upon pennar Ind. Thanks
ReplyDeleteMIC is a risky play not tracking.
DeletePls give your view in Triveni turbines at current price.
ReplyDeleteNot tracking closely
DeleteSir your view on IFGL refractories and TV today
ReplyDeleteBut one of the stock advicer recomends the company is started the second innings and also they got orders from EESL and export orders worth 65 crores. will it becomes positive to the company.
ReplyDeleteThanks
Amudhan
Dear sir,
ReplyDeletePlease provide your valuable comment on GTL infa.
Thanks.
Dear ACE, please ur view on SHILP GRAVURES after yesterday' result.
ReplyDeleteGood results.
DeletePalred technologies has started social media campaign for its ecommerce site LatestOne.com
ReplyDeleteScreenshot of Facebook ad:http://s2.postimg.org/kaf2sq7wp/Screenshot_2015_05_06_22_32_47.png
Palred Results Update:
ReplyDeletePalred consolidated results out: 7.05 Crores Sales, Net Profit 1.25 Crore. Margin at 17.73%, good results.... Hope the company grows now!
Meanwhile another announcement made by Palred says:
LatestOne.com carries more than 1000 different types of cables, 3,000 different designs for mobile &
tablet cases, 50 different models of power banks in its own warehouse/store that they operate from
Hyderabad. The “experience” of shopping on a vertical specific store provides the customers a
wider range of products with user friendly interface to browse through a range of product with
dedicated customer support. LatestOne.com is emerging as the largest player in India in terms of
online e-commerce business for tech product accessories.
“Latestone.com is all set to re-define the e-commerce business model in India. As a practice we sell
from our own store and inventory to ensure customer satisfaction. We assure timely delivery and
maintain high quality standards in our design, contract manufacturing and offer warranty and even
replacement for products purchased from our site. So far, we have seen less than 2% refunds &
replacements. ”
Adding to this Mr. Palem Srikanth Reddy, Managing Director of Palred Technologies Limited
said, “LatestOne.com brings to the consumers the widest variety of PC, Laptops, Mobile phone
accessories and digital cables with assured quality and prompt delivery on one of the fastest portals
available in the e-commerce space. It is our endeavour to delight the customer with our quality,
technology and service by leveraging our expertise in innovative supply chain management and
technology. In the coming months we plan to introduce innovative solutions and increase our reach
across the country. We plan to enhance our offerings and will be building new warehouse to meet
the increasing demand. We aim to reduce the delivery time from 3 working days to 2 working days,
from the time the order is placed. We are confident that Latestone.com will revolutionise the ecommerce
space by its specific offerings and product portfolio.”
The company employs over 100 staff in Hyderabad, under full time / direct employment. It
operates with a 12,000 sq ft. facility for store/warehouse. LatestOne holds a share capital of almost
INR 16 Crores.
Hello,
ReplyDeleteI bought 7500 palred tech... when is the record date for capital reduction?
Sir:
ReplyDeleteI invest through Kotak Securities, Palred technology stock is not showing up. Please let me know how to
invest in Palred.
regards,
MTS
Actually, Palred is undergoing capital reduction and hence withdrawn for the exchange for the time-being. It will be relisting soon.
DeleteHello sir, i got a mail from Palred technologies that it is going under capital reduction and it will take 60% of my shares that it will automatically be deducted from my account and the amount will be transferred to my bank account. So can any company do like this or is a fake mail?
ReplyDeleteIts not fake sir, its real
DeleteSir, after the Q1 results of palred, do you think its worth investing now?
ReplyDeleteEPS is not very encouraging.Pls guide