Tuesday, 22 December 2015

Saksoft Ltd - Value Pick - Merry Christmas

MERRY CHRISTMAS TO ALL READERS..CHECK BOTTOM OF THE POST FOR THE NEW ANNOUNCEMENTI!


The Ace Investor
Saksoft Ltd
  Listed on both NSE: SAKSOFT & BSE: 590051
Currently trading around 260 with a market cap of around 240 crores.
Promoters hold 73.47% stake.
It has a Debt of 40 crores.
Total Reserves are around 100 crores.

Saksoft Ltd is an Big Data and Analytic firm headquartered in India with a head count of 750+.

Saksoft offers services such as Information Management and Business Intelligence, Testing Services, Application Development Services and CLOUD services.

Company boasts of 100+ Clients in Info Mgmt and Biz Intel, Having completed 510+ projects and Experience in working with Government and Security agencies.

Company acquired 360logica earlier this year which commands a good market share in application testing sector and the acquisition aids Saksoft now to operate in this sector.

Company boasts of 15+ years of experience in App Development services, 80+ Apps completed by the company. The company offers complete solution from design to cloud integration for apps.

Company has ventured into the hottest sector of Cloud Computing where it offers wide range of services (IaaS, PaaS, SaaS)

All these cloud services are delivered via Internet and customers have nothing to worry about hardware/software or licenses to manage them.This features allow companies to run on opex only model and don't have to budget capex year on year basis, which translates to direct savings. This is the primary reason for increasing adoption with SME's and enterprises for cost-cutting and providing business flexibility and transformation at a rapid pace.

The company is focused on the Retail and E-Commerce sector.

Coming to the financials, Saksoft has witnessed great growth :-

As you can see from 120 odd crores the company has now grown to almost 240 crores company in 4 years.

In last 2 years there hasn't been any big growth in the top line of  the company. But as is into cloud computing and Big Data these sectors are really hot right now and the Massive Growth is expected to kick in for Saksoft pretty soon.

Company is having healthy 3 year ROCE average of 16+ , The company has paid dividend consistently since last 11 years and more.

Promoter holding is at 73.47%, FIIs hold only 0.52%, DIIs 0.98% and Public holding more than 1% shows us 9.56% is with some HNI investors.

So a huge chunk of 84.53% is already locked with these guys "OFFICIALLY" and promoters in almost all companies do hold more stake with their relatives having equity lesser than 1% which will not be shown on the shp, So let's assume another 5% goes there that makes it almost 90% equity is locked up there.

So out of 1,03,60,000 shares only about 10 lakh shares are available in the market.

We have seen how a recent Cloud computing story called 8K Miles has played out in the market.

From 50 bucks in 2013 today 8K Miles has touched 2000+ which is a gain of almost 4000% in just less than 3 years. 8k Miles had topline of 125 crores in FY15 and bottomline of 19 crores and current Mcap is 2200 crores. 

Another comparable company would be Kellton Tech Solutions which has rallied from 35 to almost 200 this year, Traded only on BSE Kellton is finding it difficult to go up because of the BSE quarterly/monthly/yearly circuit norms.

Kellton Tech which provides similar services such as ERP, Cloud, App development, Web Development had a topline of 240 crores in FY15 and Net Profit of 22 crores and its current market cap is around 800 crores and the current p/e is around 35.


8K Miles having 125 crores top line is trading at 2100 crore Market Cap which means Mcap/Sales is around 17 and Current P/E is 100+ whereas Saksoft current Mcap is around Sales which means around 1 and P/E is around 15 having higher sales and better management record.

But ofcourse, 8K Miles and Kellton are high growth companies but for Investors a good management record would be the first point for rating a stock.

Saksoft has only this year acquired 360logica for App Testing/Development so the growth of that sector is yet to hit the books.

Simple logic is that: Kellton would go higher if it was on NSE because the gap between Kellton and 8K is huge, and Saksoft would go higher to reach above Kellton for sure because there too the Gap is huge and Saksoft is on both NSE & BSE.

Saksoft is trading around 10% of valuations to what 8K Miles commands in the market.

Investment Guru Mr Ramesh Damani in a recent interview to the Share Bazaar APP was asked:
(source: Sharebazaarapp.com)

Mr Damani has said that his favorite sector would be Big Data Analytics which is where Saksoft operates.

It may sound like an over-statement but Saksoft Ltd is my bet as the Next Kellton and after that the Next 8K Miles.

Saksoft has broken out of a 7 year Cup & Handle pattern on daily charts, check image below.

All in All, Saksoft is a great Multibagger opportunity in market I think.




Note: The above is not a research report but information as available on public domain and it should not be treated as a research report.

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 Saksoft Ltd in my portfolio and hence my point of view can be biased. Readers should consult their financial advisory before any investments.

:Links:


NEW ANNOUNCEMENT
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The Ace Investor


65 comments:

  1. Already in circuit. Couldn't get any.

    ReplyDelete
    Replies
    1. Lucky enough to get few today :)
      Looks promising. Will hold for long term.
      Thanks

      Delete
  2. Good Idea Prem Ji, Could you explain how it works 'Invest with the Ace'.

    ReplyDelete
    Replies
    1. If you have filled it up, You will get the answer :) Be patient.

      Delete
  3. Merry Christmas Prem Ji...🎅

    ReplyDelete
  4. Dear Prem Ji,
    I have lost lot of money in play in option, now I willing to fresh start in the equity market, I am salaried person with limited money so I will start investing little on monthly basis, I just found you blog on the internet and it is very useful and you are doing a wonderful job.
    I just want to thanks to you.
    You are great.

    Sumit

    ReplyDelete
  5. Dear Prem ji,Previously left the stock market in 2008 crash.Now return in 2015 only with your blogs support.started investment in Indo terrain fashion and camphor and allies.Happy christmas

    ReplyDelete
    Replies
    1. Marksan Pharma me invest kiye?

      Delete
    2. Waiting for communication from your end.

      Delete
  6. What is your view on nihar info global the company has same business model and currently at 24.

    ReplyDelete
    Replies
    1. Oh please, Nihar Info global is not even comparable.

      Delete
    2. ALLRIGHT. What about CTE, Cambridge technology enterprises.

      Delete
  7. Sir SAKSOFT Ltd. Upper circuit par already tha es ka Matlab kuch investors ko phaley pata chala hoga es pick Kay bare mai that is not good.... OK sir your view upon steel strip wheels Ltd. .. Please reply sir as you are not replying our requests properly.

    ReplyDelete
    Replies
    1. Sir har cheez me conspiracy theory mat lagao yaar!

      And it was available when posted as well as today morning.

      Delete
  8. Mr Damani's comments reminds me of vakrangee which expects to be on every pincode and serve every aadhaar number. will add services to every pincode to serve rural areas.

    ReplyDelete
  9. Sir i filled up the form. Can u give any time frame in which i will expect communication from your side.
    Regards
    Himanshu

    ReplyDelete
  10. Hello Aceinvestor,
    Whether the financials you mentioned of Saksoft are consolidated?? - because on moneycontrol/ bse some other financials are being shown !!!

    Appreciate your various deep-researched articles...

    ReplyDelete
  11. Hi AI, I have invested in Kamat Hotels @ 71.50 what is future of the stoc?

    ReplyDelete
    Replies
    1. Not interested in Hotel stocks, with rise of Oyo Rooms and all those coupon backed Zo Rooms, Stayzilla etc. along with apps like AirBnb these branded Hotels do find it difficult to attract middle class and youth.

      Delete
  12. Please your view upon steel strip wheels thanks

    ReplyDelete
    Replies
    1. Not aware about this sector so difficult to comment.

      Delete
  13. plz share ur views on MALLCOM INDIA LTD.

    ReplyDelete
  14. PLZ SHARE YOUR VIEWS ON MALLCOM INDIA LTD.

    ReplyDelete
  15. The OPM of 8 k miles is more than 30 % where as saksoft has only 11 % OPM. Why have u compared valuations of 8 k miles n saksoft. SAKSOFT can become 8 k miles only if OPM are comparable

    ReplyDelete
  16. Pls do not mind. U r a legend. Enlighten me. I am just a novice. Thats the difference between u, ur knowledge n we .
    Regards

    ReplyDelete
    Replies
    1. Thanks Sir . I read it again. Got it. opm rapidly increasing n HY16 is 15 percent. Doubled sales in 4-5 years (hight growth) Good ma
      agement. Low PE N marketcap/ sales when compared to 8 k miles n kelton. Limited shares available in market. low debt.
      Thanks . It was on circuits last week. Shall we buy it now or wait for some correction.
      Regards

      Delete
  17. hi, saksoft is not analytics firms the stmt "
    Saksoft Ltd is an Big Data and Analytic firm headquartered in India with a head count" is misleading. when you speak about big data it is all about HANA, hadoop managing huge amount of data for analytics i don't think the company has any experience in this field not even this many top company are yet to master on this as per the company site they don't speak about analytics, can you plz correct me on this.

    ReplyDelete
    Replies
    1. Please check the company's annual report?

      Delete
  18. Sir ur view on omax auto I bought at 88 kinslt suggest

    ReplyDelete
  19. Sir ur view on omax auto I bought at 88 kinslt suggest

    ReplyDelete
  20. The annual reports speaks about prospects about analytics and their partnership with logic analytics but they have not fully established or completed any projects in this domain which can term them as big data and analytics firm can you plz correct me...

    ReplyDelete
    Replies
    1. Business Analytics is the conventional word for BIG DATA which people have now started calling BIG DATA ANALYTICS. I hope this clears the air.

      Delete
  21. Sir ur views on sanjivani parental and biopac indistries. Thanks

    ReplyDelete
    Replies
    1. Sanjivani Parental looks very ordinary to me.
      The promoters stake is low, even though its not a big deal, the company has paper thin margins and even Debt is there on the books.

      Take a look at Parnax Labs in comparison, Fy15 consolidated for Parnax was 103.47 crores sales and 4.26 crores net profit with EPS of 5.01 and at CMP of 53.90 it is available around 10 and Market Cap to Sales is 0.52. Check their website too http://naxparlab.com

      Regarding BIOPAC, i do not closely track it.. Checked it last year around 8 bucks and now it has moved up pretty smartly from there. Don't have much insight about management and business too.

      Delete
    2. Hi Ace,
      For Panax, can you please clarify regarding its business? Is it into Finance or Pharma. I Googled about this and got below info:

      "Parnax Lab, earlier known as Krishnadeep Trade and Investments, incorporated in the year 1982, engages in investing and financial businesses in India. The company is based in Mumbai, India. In 2012 the company has changed its name from Krishna Deep Trade & Investments Ltd. to Parnax Lab"

      Whereas, website does not have any info about Finance as another area of their working.

      Please advise.

      Delete
  22. Sir .ur view on opto circuits and good luck steel tubes

    ReplyDelete
  23. Dear Sir, Please advise if Sintex Industries is a good medium term bet.
    Regards

    ReplyDelete
  24. Pls let me know whether Kopran and south indian bank are good buys at cmp.

    ReplyDelete
  25. Sir, could you please update on your New Announcement "INVEST WITH THE ACE INVESTOR"? I have filled up the form and send twice and still awaiting response/ update. I am a regular follower of your blog and also got benefited from your advise. Thanks and hope to receive your response!!

    ReplyDelete
  26. Sir what's your view on Dynemic product? i am holding since 1 year.there is no improvement.please share your view..

    ReplyDelete
  27. Hi,happy new year sir. What do you think about sankhyan infotech.Its on continuous UC

    ReplyDelete
  28. Hi, If you tracking Renaissance Jewellery Ltd (RJL), please advice if it is a buy at CMP for medium to long term.

    ReplyDelete
  29. Sir,my query is unanswered

    ReplyDelete
  30. Hi Aceji,

    What a Gem you have suggested..staying tall in current carnage also. Bought at 286 and will continue to hold.

    Thanks to you

    J

    ReplyDelete
  31. What are the future prospect of Cosmo films is it advisable to buy at the current price

    ReplyDelete
  32. This comment has been removed by the author.

    ReplyDelete
    Replies
    1. Buying something after it has moved 82% is not a good idea. Be price sensitive.

      Delete
  33. sir can you give paid service???

    ReplyDelete
  34. Hi Ace,

    Today also lower circuit @288/- coming to same level when you initiated coverage in the blog. What you suggest now, from long term perspective.

    Jay

    ReplyDelete
  35. Saksoft falling any reason

    ReplyDelete
  36. Why saksoft so much fallen from 475 to 215 & is there any charm remain in this stock for investment of 12 to 18 months

    ReplyDelete
  37. very good pick sir.

    ReplyDelete
  38. HI Sir, I am holding 177 @ 225 , Can I hold it for longterm or can I book lossa nd come out , please suggest?

    ReplyDelete
  39. HI sir, Can you please give youe view on Sunil Hightech Engg?

    ReplyDelete