COMPUCOM SOFTWARE
LTD.
A LONG TERM BUY Be
and Make
Key
facts
|
a. Morethan7000 govt. schools under ict &it services in
sarva shiksha abhiyan
b. Morethan2.5 million learners covers across north India
c. Prominent player in e-governance in northindia
d. Excellence award for it export, education and
e-governance given by the chief minister, govt. of Rajasthan on January 18,
2012
e. Listed at national stock exchange of india ltd. (nse) on
march2, 2012
f. “JAN tv”, satellite tv channel of compucom software
limited's subsidiary csl infomedia (p) ltd.,was launched on may13, 2012.
g.
13 years uninterrupted dividend payment and profit making track
record
Business
Review
(1) Learning Solutions:
During this year revenue from this
segment amounted to Rs. 6,096.27 Lacs against the last year revenue of
Rs.6,107.62 Lacs which shows a decrease in revenue by Rs.11.35 Lacs i.e. 0.19%.
Learning Solution Segment mainly comprises ICT Phase I, ICT Phase II, ICT
Bihar, Delhi School Project, CALP I, CALP II. The Company has total 6418 Govt.
Schools and 2 million learners under its educational Umbrella. The Company has so
far successfully implemented various educational projects viz. ICT Phase-I
worth Rs. 141 Crores involving 2292 Govt. Higher Secondary Schools, ICT Phase
II worth Rs. 77.77 Crores involving 1550 Govt. Higher Secondary Schools, Delhi School
project worth Rs. 14.82 Crores involving 568 schools. Out of these projects,
the ICT Phase I and Delhi Project got completed in June 2012. However the Govt.
of Rajasthan has extended ICT Phase I project for further 1 year i.e. upto June
30, 2013. During the year 2012 the company has bagged one more project of ICT from
Govt. of Bihar worth Rs. 46.71 Crores involving 336 Schools. Further the
company has successfully implemented CALP-I and CALP-II projects in 836 Primary
Schools each worth RS. 10.68 Crores and Rs. 10.41 Crores respectively. All the
above projects are running successfully. The
Company has massive plans for capturing the advantage of Indian education
expenditure planned through Govt. of India promoted PPP model across India
fueled by SSA (Sarva Shiksha Abhiyan).
(2) Software & E-Governance Services: During the year, the Company focused on the areas where
higher margin was available with low risk factors. The revenue generated from
this segment during the Financial Year 2011-12 was Rs. 695.00 Lacs as against
Rs. 804.04 Lacs during the last Financial Year. This reflects a decrease of
13.56 % i.e. Rs.109.04 Lacs due to lower spending by the Govt. Deptt. &
fear of recession. Profit earned from this segment amounts to Rs. 246.93 Lacs
as compared to that of Rs. 358.52 Lacs during the previous Financial Year, which
has resulted a decrease of 31.13%. The ratio of the segmental profit to the
segmental revenue has decreased by 9.07% from 44.59% to 35.52% as compared to
the previous Financial Year.
The Company has been awarded the
contract by JdVVNL for “Providing Manpower for Operation of Customer Care Center
under R-APDRP at Jodhpur” for 3 years which has valuation of Rs. 3.02 Crores
approx. They have started the operations under this project w.e.f. January
2012. The JVVNL project for Jaipur and Kota cities, which expired on April 30, 2012
has been extended by the department for further 1 year i.e. up to April 30,
2013. JVVNL has also given an increase of 18% on the overall rates for
executing this project for this extended period of 1 year. Under this project Company
has to provide the call center, fault rectification and CSC (Customer Service
Centre) services The project with JdVVNL for providing IT enabled call center services
at Bikaner City has been successfully completed in February 2012.
(3) Wind Power Generation:
The Company had set up two wind power
generation plants of 1.20 MW at Jaisalmer (Rajasthan), two at Sikar (Rajasthan)
of 1.20 MW & One Plant at Krishna (Andhra Pradesh) of 0.8 MW. Total wind
power generation capacity is 3.2 MW.The operation and maintenance of all these
wind power project has been out-sourced to M/s Enercon India Ltd.. During the year
revenue generated from this segment amounted to Rs.204.05 Lacs in the current
year as compared to Rs. 190.83 Lacs during the previous year ended on March 31,
2011.which shows an increase in the revenue by Rs. 13.22 Lacs i.e.6.93%.
(4) Treasury Activities:
Treasury income includes capital
gains, dividends from mutual funds and equity shares, interest on FDRs etc.
During the year, the revenue generated from treasury operations has increased
by Rs. 2.86 Lacs mainly due to increase in interest income on FDRs. During the
year most of the funds was invested in FDRs, where returns are lower but safe
in comparison to equity-oriented funds.
(5) Subsidiary Companies: The
Company has two subsidiary Companies:
(a) ITneer, Inc.
(b) CSL Infomedia Pvt. Ltd.
OUTLOOK
OF THE COMPANY:
The
company going in a very aggressive manner to grab the opportunity in education
space in India. The company is likely to
post good numbers for the FY13 and considering the current market price around
Rs.13/- the stock is attractively valued and one can buy this stock only aiming
for the 3-5 years period. It has the potential to fetch you a multi-fold
returns for sure.
With thanks
BE AND MAKE
2 comments:
Compucom Software is one of the cheapest stock available in education sector with a marketcap of just Rs 155 crore. We believe this company has a long way to go. This is a company based in Rajasthan which is in ICT education and software. They have tie-ups with various state governments to provide ICT educations in around 7,000 schools and ICT education will be implemented in around in 2,500 to 3000 schools by next year.
I get so tiried of hearing about apple. Theirs some many other technology companies that you never hear about such as the one in this post.
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