In our attempt to ‘give back’ to society, we as a firm do our bit by organizing a community service event each year. This year, we visited a school for underprivileged kids, hoping to add some cheer to their lives, and some value and humility to ours. The event was held on Saturday, July 23, 2011 and spearheaded by ‘Teach for India’ volunteers. Teach for India (TFI) is a nation-wide movement of leaders, who recruit top graduates and professionals, working to bridge the education gap. (For more information please visit www.teachforindia.org)
Archive for the ‘ TresVista Events ’ Category
29th Jul '11
28th Jul '11
We recognize and value that people are unique and multifaceted. We give people the freedom to contribute to the improvement of the organization. We encourage creativity and support enthusiasm.
- From the TresVista PACT
Born out of an idea, and sustained by its vision, this blog is the embodiment of a value that we hold in high regard as part our collective consciousness – the uniqueness of the individual. There is not a single article in the blog that does not stand testimony to this.
Conceived as a forum that sought to capture and preserve the diversity of ideas and opinions that find their way around our floor every day, going ‘Live’ was not always the obvious next step. But as we grow together as a firm, and with the increasing depth of our experience, we are emboldened to reach out to a larger audience with what we have to say.
They say that it takes all kinds to make a world, and for those who haven’t been here before, this blog is a reflection of the vibrancy and creativity of the mosaic that is TresVista. Whether you be one of our own; or just an interested reader – here you may find a point of view, unique in its own right, and unfettered by convention – that offers a perspective on the broader world that is not limited to just what we do.
Revamped, redesigned, and reinvigorated.
Welcome to the new TresVista Blog.
Suggested Reading. A selection of posts from among the blog’s many memorable articles –
Feel free to link to your own favorites in the comments section.
26th Apr '11
The first leg of the competition has been concluded, and the following participants have submitted their investment ideas:
1) Gaurav – Info Edge (Link)
2) Faraz – Karutri Global (Link)
3) Sneha – Molycorp Inc. (Link)
4) Gajanan – Lovable Lingerie Ltd. (Link)
5) Manan – Tide Water Oil (India) Ltd. (Link)
6) Tirthank – Micro Technologies (Link)
7) Satish – Geodesic (Link)
8) Kavan – Everonn Education (Link)
9) Girish S. – MindTree (Link)
The ideas and strategies are varied; unique, and equally competitive. The question is, are you ready to back them to double your money? So let the commenting duels begin! Be it to find loopholes in fellow participants or to be in the race for the prize of The Best Commentator!
25th Apr '11
Name – MindTree
CMP – INR 376.60
Market Cap – USD 0.3 billion
Profile: MindTree, a well – respected midsized information technology company offers services ranging from application maintenance, Business Intelligence, Independent Testing, product development, etc. Currently co-headquartered in Warren, New Jersey and Bangalore, it has 3 development centers in India and 23 offices spread across Asia, Europe and the United States. MindTree has been involved in the creation of Bluetooth technology and is an Associate Member of the Bluetooth Special Interest Group.
History: MindTree Consulting filed its draft red herring prospectus with the SEBI for its IPO in December 2006. The IPO was oversubscribed more than 100.0 times. Along with many other awards, MindTree was declared the Number 1 Most Admired Knowledge Enterprise in India by Teleos, in association with the KNOW Network. Today, MindTree, with over 30.0% CAGR growth in past 3 years, has proven that the idea called MindTree holds promise.
Few promising points about the Company:
- P/E of only 9.1x, as compared to the industry P/E of 25.7x
- Healthy EPS of INR 30.78
- Income from software development grew to INR 12,332.0 million for the year ended March 31, 2010, which represents an increase of 22.0% over INR 10,126.0 million in 2009. Growth across both overseas and domestic markets was witnessed. Export revenues grew by 20.0% to INR 11,417.0 million whereas domestic revenues grew 42.0% to INR 915.0 million
- Company has added a built-up capacity of 106,000.0 sq. ft. and added 1,000 seats. With this, the total built up capacity of the Company in India stands at 1,326,000.0 sq. ft
- Strategic Acquisitions:
- NOIDA based ASAP solutions in 2004 for all cash deal
- Bangalore based Linc Software Services Pvt Ltd. in 2005 for stock and cash
- TES – Purple Vision in December 2007
- Majority Equity Interest in Aztecsoft
- Chennai based 7Strata : Remote IT Infrastructure Management Services
- Liquidity: The Company maintains sufficient cash to meet its operations and strategic objectives. As on March 31, 2010 the Company had liquid assets of INR 1,614.0 million as against INR 477.0 million as of March, 2010. These funds have been invested in deposits with banks and in money market mutual funds
Strategy going forward: MindTree will now focus on fewer verticals unlike the earlier strategy where it was positioned as an all-services IT provider. This would help the company getting repositioned as a niche IT player in select verticals. As per the new strategy, company will market its service offerings as – IT services and Product engineering services (PES). PES would include both R&D services and software product engineering services into one entity.
Conclusion: The Company recently lost contract worth USD 2.5 million from Japan based Kyocera. Though this will hurt the revenues of the Company, I think this is a very good time to enter the stock as it is trading at a heavy discount.
The Company has already shown glimmers of recovery in Q4 FY 2011 after it wrote off this wireless business venture.
Rupee appreciation is the only hurdle, the Company will be facing in the long term. Resignation of Ashok Soota (co-founder and executive chairman) is also not expected to have a long term impact on the stock.
The number of strategic acquisitions has given a very strong sentiment to the investors. With strong Q4 results and healthy future prospects of the Company, doubling the money via this multi – bagger in less than 3 years is certainly on the cards.
25th Apr '11
Company Name: Geodesic
Market Cap: USD 183.0 million
CMP: INR 92.00
LTM P/E: 2.6x
Free Float: 76.8%
Geodesic, incorporated in 1999, is a Mumbai-based software technology company and is engaged in software product sales and related consultancy service. Its business units include unified communication services, collaboration and customer relationship management (CRM), mobile media, electronic computing, and financial products and services. CRM is an integral continuum, which includes a set of integrated module. The company’s unified communication, collaboration and CRM unit focuses on the banking and financial services institutions, SME’s, and large retail industry. Its Mundu products are retailed across www.mundu.com and application stores, including Nokia’s Ovi Store, Apple’s App Store, Palm Store and Blackberry Store. The company recently launched its app on the Android market which has been a great success in India, till date. Android, as we know has a tremendous potential in the Indian market, primarily due to its availability and price efficiency.
The company’s revenues grew at around 3.0x over the last three years to reach INR 503.2 crores in 2010, resulting in a CAGR of 42.8%. Despite the economic slowdown in 2010, the company witnessed a minor fall of 1.0% in its topline growth, displaying stability in its earnings. In the first nine months of this fiscal, the company has already recorded revenues of INR 487.9 crores, which if annualized (although not appropriate) translates into INR 650.6 crores (29.3%) already.
Although, the company doesn’t have a core peer in the domestic market, internationally there are number of companies involved in developing apps for the smartphone market. The company is trading at a P/E of 2.6x, which is at a steep discount to its peers across the globe which is trading at P/E of 23.2x.
Geodesic derives most of its revenues from developing instant messaging platforms/services, Internet radio, IP telephony and other such applications and licensing them to enterprises as well as retail users (directly or indirectly) under the ‘Mundu’ brand. The company has added new clients in nearly all its segments of operations. Usage of its retail offering instant messaging, VoIP platform and mobile SMS over IP has witnessed a rapid increase. With all these segments set to expand in a big way as companies and portals, offering social networking, etc., seek to cut costs, Geodesic is well positioned to tap into this opportunity. The company also has acquired many small software companies across the globe which helps it to tap in those economies and also, enables the company to be ahead of the curve.
It has a developed revenue model comprising license fees, customization fees, per-usage fees and recurring revenues. In fact, 55.0% of its revenues are recurring revenues. This enables revenue visibility and better margins as well. The company has also bagged contracts from the Government of India, as part of its e-governance program, which gives a tremendous upside to the earnings potential of the company. The company recently bagged a deal from the Madhya Pradesh government for implementing Public Distribution Service. Other deals include traffic management and the NREGA (now Mahatma Gandhi NREGA). Chandamama, the children’s magazine that it owns, has also witnessed a ramp-up in revenues.
The way forward
The Indian smartphone market is expected to increase significantly with the smart phone sales grown 3.0x times between (July-Sep) of 2010 compared to 2009. Moreover, the market potential is huge with – 80.0% of smartphone market still untapped, and according to a recent survey by Delloite, 90.0% of all users want to move to smartphones. This has also been helped by declining prices of the smart phone market. In the Q2 2011, 80.0% of the total Indian smartphone sales were lesser than the avg. sales value of INR 18,000, the proportion of which rose to 90.0% in the Q3 2011. Due to ever increasing demand of apps such as Live TV aided by the introduction of the 3G technology, the number of apps for these markets is expected to increase significantly. Moreover, NDTV in its recent survey rated Mundu as the #1 App for India, which puts the company in the driver seat and first mover advantage.