VIRINCHI -CAN IT RIDE ON HOSPITAL BUSSINESS?

Disclaimer: This Blog, its owner is not a research analyst and expressing opinion only as an individual investor in Indian Stock markets. He is not responsible for any loss arising out of any information, post or opinion appearing on this blog. Investors are advised to consult financial consultant before acting on any such information. All information in this blog is posted for personal study, All information posted on blog is as available in public domain.

My Dear friends,

 Dear friends Today I am writing my 2nd post and will express my view on it.i simply cant resist writing about this GEM

VIRINCHI -CAN IT RIDE ON  HOSPITAL BUSSINESS?

C.M.P -122/-

C.M.P. when suggested on Moneycontrol board was 105/- on 31st match 2017.running continously after that not due to me but due to fundamnetals.

UPSIDE POTENTIAL-Readers should self assess that after reading my blog

ABOUT COMPANY- PLEASE REFER http://www.virinchi.com/

Set up in 1991, Virinchi has over the years gained a wealth of experience in various aspects of business and industry in the areas of conceptualization, packaging and structuring of technology solutions. The collaborative style of working enables Virinchi to convert knowledge and skills into sound strategies and financial returns.

Virinchi is currently the world leader as software service provider to Retail Micro Lending Industry in North America, the company operates through its subsidiary QFund Technologies, Inc a 100% subsidiary of Virinchi Limited in USA.

QFund Technologies, Inc., KSoft Systems, Inc., an IT consulting company based out of NJ, USA and Asclepius Consulting that is one of the fastest growing Healthcare IT and Healthcare Consulting Company in India are subsidiaries of Virinchi Limited.

BUSSINESS THAT ATTRACTS ME:
Virinchi Health - Hospital Management System

Virinchi Health is a major step towards paperless operations in the hospitals. HMS is a comprehensive enterprise wide software that covers all aspects of management and operations of a hospital. It is designed to help achieve best clinical outcomes, optimal financial performance and most importantly patient and employee satisfaction.

Virinchi Health manages information across the entire hospital in terms of patient management, clinical management, patient accounting and hospital-wide inventory management etc. regardless of source application or system. The output produced by HMS can be automatically and logically classified, indexed and secured in an enterprise information repository.

Financials. QUARTERLY PERFORMANCE 

(in Cr.)	Dec-16	Sep-16	Jun-16	Mar-16	Dec-15	FY 15-16
Income Statement
Revenue	33.76	27.72	26.22	26.19	27.07	104.35
Other Income	0.52	0.15	0.13	0.38	0.29	1.31
Total Income	34.28	27.88	26.36	26.57	27.36	105.66
Expenditure	-25.90	-21.80	-21.63	-21.78	-23.60	-87.21
Interest	-1.73	-0.80	-0.27	-0.82	-0.39	-2.18
PBDT	6.66	5.27	4.46	3.97	3.37	16.27
Depreciation	-4.03	-3.39	-3.05	-2.69	-1.74	-10.22
PBT	2.63	1.88	1.40	1.28	1.62	6.06
Tax	-0.60	-0.62	-0.35	-0.45	-0.49	-1.88
Net Profit	2.03	1.26	1.05	0.84	1.14	4.18
Equity	17.99	17.99	17.99	17.99	17.99	17.99
EPS	1.13	0.70	0.59	0.46	0.63	2.32
CEPS	3.37	2.59	2.28	1.96	1.60	8.00
OPM %	24.83	21.90	18.01	18.27	13.88	17.68
NPM %	6.02	4.54	4.02	3.19	4.20	4.00

Company is growing moderately with good OPM's .Hospital bussiness can really give boost to the revenues.that would be a re-rating trigger.

AS MENTIONED EARLIER ONLY REASON THAT ATTRACTED ME IS POTENTIAL REVENUE CONTRIBUTION FROM  HOSPITAL BUSINESS.

SO AT CURRENT C.M.P. of 122/- after recent run up VIRINCHI STILL looks good and a re-rating candidate going ahead . I believe that rather than UPSIDE most important is to GAUGE the DOWNSIDE.I personally prefer the CAPITAL PRESERVATION  the most before investing in any STOCK.
VIRINCHI GIVES ME THAT COMFORT.

Also pl. add/subtract anything which i might have missed.All suggestions,feedbacks are welcomed here.

DISCLOSURE- I am already invested hence my  view can be biased. Readers should consult their financial advisory before any investments.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

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”

INTENSE TECHNOLOGIES -A NICHE IT PLAYER

Disclaimer: This Blog, its owner is not a research analyst and expressing opinion only as an individual investor in Indian Stock markets. He is not responsible for any loss arising out of any information, post or opinion appearing on this blog. Investors are advised to consult financial consultant before acting on any such information. All information in this blog is posted for personal study, All information posted on blog is as available in public domain.

My Dear friends,

 Dear friends Today I am writing my 1st post and will express my view on one  of technology stock.

INTENSE TECHNOLOGIES -A NICHE IT PLAYER

C.M.P -154.15/-

UPSIDE POTENTIAL-Readers should self assess that after reading my blog

ABOUT COMPANY- also refer http://in10stech.com/

Intense tech is a 16 year old company and its software products are used globally by Fortune 500s for digitalization of customer experience life-cycle, resulting in greater customer-centricity and reduced operational expenses

They serve customers in 30+ countries across 4 continents, with a 70% market share in telecom domain in India, have 10 years of experience in telecom and insurance domains.

Some of their clients are leading players in telecom, banking and finance, insurance, and other sectors. Bharti Airtel, Idea Cellular, Aircel, Omantel, Etisalat, ICICI Prudential Life Insurance, GE Money, Bharti AXA Life Insurance, Government of India-Income Tax Dept., and many more are their customers.
Recent new and BIG Clients are VODAFONE,BSNL, RELIANCE JIO & HDFC bank

Financials. QUARTERLY PERFORMANCE 

(in Cr.)	Dec-16	Sep-16	Jun-16	Mar-16	Dec-15	FY 15-16
Income Statement
Revenue	21.20	19.20	12.53	13.99	16.43	42.00
Other Income	0.27	0.19	0.37	1.18	0.82	3.48
Total Income	21.47	19.38	12.90	15.18	17.25	45.49
Expenditure	-11.45	-12.25	-10.68	-10.55	-10.24	-42.63
Interest	-0.35	-0.11	-0.32	-0.33	-0.20	-0.79
PBDT	9.68	7.03	1.91	4.30	6.81	2.07
Depreciation	-1.73	-0.30	-0.26	-0.59	-0.37	-1.62
PBT	7.95	6.72	1.65	3.71	6.44	0.45
Tax	-4.20	-0.70	-0.30	-0.24	--	-0.24
Net Profit	3.75	6.02	1.35	3.47	6.44	0.21
Equity	4.34	4.34	4.34	4.34	4.34	4.34
EPS	1.73	2.78	0.62	1.60	2.97	0.09
CEPS	2.53	2.92	0.74	1.87	3.14	0.84
OPM %	47.29	37.14	17.77	33.08	42.68	6.80
NPM %	17.71	31.37	10.77	24.80	39.21	0.49

LAST 09 MONTH RESULT -in last nine months , results looks excellent with  approx 11 cr profit instead of 3.2cr loss YoY and nine month EPS is 4.99/-, whereas the last full year EPS was meagre 0.09.So numbers are speaking in itself.

See the jump in revenues and most importantly OPM, last Q it has touched unbelievable 46%.

TRIGGERS going ahead
1) BSNL order that they have won few months back worth 175crore. imagine how big it is as compared to their last year total sales of 42 crores. BSNL alone will give 28cr yearly revenue for next 06 Years.
Also as per concall acc. to management BSNL work has started this Quarter.
2) REL JIO deal structure is not known here but intense is handling E KYC for rel Jio and it will also bring continuous revenue going ahead as JIO is planning to lead the telecom industry going ahead.
3)Vodafone contract.
4)Any new order win overseas that can bring windfall gain,,ex, GBDR may be big thing going ahead.


RISKS/NEGATIVES:
1)low promoter holding (one of reason being old promoter sold out and only one promoter is still there with his holdings approx 18% & add employees than net holding will be approx 32%)
Also last month concal managmnet has said that they are interested to raise there stake.

general info: Mr. satpal khattar can be seen in share holding pattern with approximate 5lakh shares in his demat account.

Recent achievements:

1)Recently Intense got featured in the Gartners magic quadrant as a ‘niche challenger’ for customer communication management. This is a very rare achievement and will open up many business doors in future from overseas market.

(for gartner pl read this http://www.cio.com/article/2394373/it-organization/3-things-you-need-to-know-about-gartner-magic-quadrants.html)

2) Intense got listed on NSE on 23rd MARCH 2017 i,e a week back.

UPCOMING QUARTER :will be the key for future how things shapes out i am expecting INTENSE to FINISH this YEAR with FULL YEAR EPS of 8.5-9/- if some extraordinary cost or iten doesn't comes in Q4.

With intense ROBUST ORDER BOOK and GROWTH and being DEBT FREE company it should command the PE of 20 atleast but market is supreme so let market decide the FINAL PE.

and if the TRENDS continues INTENSE will grow by 40% on CAGR basis and in next 1.5-2 years it can clock EPS of 18- plus  i,e double form here as they have extreme high PROFIT MARGINS and as they have crossed  INFLECTION POINT any increase in TOPLINE goes exponentially & directly into BOTTOMLINE.

SO AT CURRENT C.M.P. of 154.15/- INTENSE looks EXTREMELY ATTRACTIVE with downside limited due to rising EPS . I believe that rather than UPSIDE most important is to GAUGE the DOWNSIDE.I personally prefer the CAPITAL PRESERVATION  the most before investing in any STOCK.

IMPORTANT NOTE:For more data and future prospects  of company please go through management concall that is uploaded on BSE. It will provide good details about what company does and what can be expected in future.

Also pl. add/subtract anything which i might have missed.All suggestions,feedbacks are welcomed here.

DISCLOSURE- I am already invested hence my  view can be biased. Readers should consult their financial advisory before any investments.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

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”