VIRINCHI -CAN IT RIDE ON HOSPITAL BUSSINESS?

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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”