COMPUCOM SOFTWARE LTD.
A LONG TERM BUY Be and Make
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
(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.
BE AND MAKE