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Consolidated performance for 1st Half of FY 2010.....
Posted by :
My Multibaggers
Spanco Ltd is another call.....It`s BPO Buzz! This year is most successful year for BPO industry. 6 months EPS of Spanco is Rs.8.74 & annualized EPS is Rs.17.48.
Right now stock is trading at around 3 P/E ratio; i.e., Rs.53.60/-. This stock bounced from odd Rs.70/- levels to Rs.275/- levels in just 2 months in the year 2005 when Reliance bought 15% stake (approx.) in Spanco Ltd. Still Reliance Capital is holding 8,58,000 shares (3.06% stake) in Spanco Ltd. Further this year company will show 200% + growth in bottom line. Book value is Rs.108/-!!! Assuming just 5 P/E stock has target of Rs.90/- to Rs.110/- at any given point!!!...
Bartronics offers half price for FCCBs (Source: DNA Money)
Posted by : Guest
Unfortunately, the promoters do not seem to be as optimistic about the company as you are. They have slowly but steadily reduced their stake from an already low 39% on 31-03-08 to 29% on 30-09-09. A further 9% out of this 29% has been pledged against loans.
...
Bartronics offers half price for FCCBs (Source: DNA Money)
Posted by : My Multibaggers
Bartronics offers half price for FCCBs
Amit Tripathi / DNA
Bartronics, the Hyderabad-based provider of automatic identification & data capture (AIDC) technologies, RFID, smart card and point-of-sale solutions, is planning to buy back its foreign currency convertible bonds (FCCBs) from the market.
The company has about $50 million in the form of FCCBs and is already in talks with some of the bond holders for the buyback.
“We are talking to some of the bond holders. But, we are not in a hurry. Considering the market condition, we are looking for a good discount offer from them. We are looking at about 50% discount and unless we get closer to that discount range, we will not buy them back,” Bartronics managing director Sudhir Rao told DNA Money.
Market sources indicated at a plan of the promoters of buying FCCBs at a discount, while selling shares in the market. “Even if promoters are buying them back while selling shares from one side, I think it makes a good business sense. They are selling shares at a better rate and buying back the FCCBs at a discount,” Rao said. The promoters have been selling about 2 lakh shares every quarter since last eight quarters.
They hold about 28% currently in the firm. The company currently has a debt of about Rs 310 crore and a cash balance of about Rs 40 crore. Meanwhile in the second quarter of FY10, the company earned revenue of Rs 137 crore of which smart cards and solutions contributed Rs 40 crore and 97 crore respectively. Bartronics earns 60% of its revenue from the domestic market while the rest comes from Singapore and the US. The firm’s order-book of Rs 650 crore, however, remained almost static since the last quarter due to dip in order execution in Singapore and the US....
clarification reargding other income from Bartronics
Posted by :
shilacAnother thing to add here is - I am holding 700 shares at a price of 190 ( I bought when the market was at 19000+). I had very high conviction about this company, but the mgmt is failing to live upto its promises. They have given a revenue guidance of 1000 cr and achieved only 335 cr in the first half. So, to meet the guidance , they have to generate a revenue of 665 cr in the next 2 quartrs, which is next to impossible. At least, mgmt should be open and transparent and come up with a revised guidance. I will see for 2 more quarters and if things do not improve, I will book my losses and get out of this stock because I am losing faith in the mgmt....
clarification reargding other income from Bartronics
Posted by : shilacThat would be unfair.. we can take it as 23-24 Cr, considering that the tax outgo was abnormally high. EBITDA is the thing to consider - it is 54 cr compared to 51 cr QoQ. revenue growth has been very bad. how can the mgmt give a guidance of 1000 cr? have they revised their guidance?...
Consolidated performance for 1st Half of FY 2010.....
Posted by :
VIN5
Hi,
When investor community discusses cashflow, it is mainly concerned about cash from operations which is negative in case of Bartronics.This is the reason for not having high P/E. Which i expect to change in a year or two
I am a long term investor in Bartronics, otherwise i do agree with your analysis...
Consolidated performance for 1st Half of FY 2010.....
Posted by : lalit_lav
thank you so much 4 ur reply..
plz give other recommendation with buying level and target price with time frame..
.. :-)...
clarification reargding other income from Bartronics
Posted by : harshmunjalso we can very well reduce the profit figure for this qtr by rs.21 cr,as this can`t be repeated next time, actual profit that can be taken for this qtr is 35-21=14 cr...
clarification reargding other income from Bartronics
Posted by : shilac
Sorry for my mistake in the last post regarding this. (copy-paste error). Here is the reply I got from bartronics regarding other income -
"The other income during the quarter stood at Rs. 21 crores mainly due to the Mark-to-Market on Foreign Exchange exposure of the company. As many investors would be aware, the company had booked approximately Rs. 50 crores loss on this account for the period ending March 31, 2009."...
managment taking +ve decisions
Posted by : Guest
The board of directors of the company at its meeting held on October 30th has taken some positive steps to achieve the following objectives
To raise funds to boost investor confidence with Fiancial show
(i) Enabling resolution to Issue equity shares through QIP
To make Bratronics eligible to do the above
(ii) Resolution to increase Authorized Share Capital of the Company
To reduce the high monthly rental out flow of the company
(iii) Resolution to shift registered office of the company
The stock is expected to bounce back after hitting a low of 99/- in the comming weeks
...
Consolidated performance for 1st Half of FY 2010.....
Posted by : My Multibaggers
Cash Flow History of Bartronics =
Cash & Cash Equivalent at the end of the year:-
2000-01 = 87,88,000
2001-02 = 79,000
2002-03 = 82,000
2003-04 = 70,000
2004-05 = 49,463
2005-06 = 35,81,69,327
2006-07 = 20,33,909
2007-08 = 5,71,11,614
2008-09 = 6,71,62,000
Varun Sir,
First of all there is no cause of concern as far as cash flows are concerned. Secondly, Bartronics is `trading company` (Hardware Parts - commodity). None of the trading company get P/E above 10 or 15 times its’ EPS. Maximum 25 times! No matter how fast it`s growing (See, HCL Info., Geodesic, etc...). Next year Bartronics will enter into service industry (Diversification) because of Aap Ke Dwar project. Additional Kiosks may be opened in Delhi. Management said it will try to execute same kind of projects in other states of India too. So it will start getting high P/E only on successful completion of 2000 Kiosks. In short; let management do the excellent work in same manner as they done in past.
Lalit Sir,
Bartronics will cross Rs.500/- mark in March 2010 per se. So hold tight. Indian Hotels Company Ltd (IHCL) has posted lackluster results in H1 FY 2010. But scheduled Commonwealth Games in Delhi, India next year & scheduled Cricket world cup series in Mumbai, India in FY 2011 will give extraordinary boost to bottom line of the IHCL. Further, 288 rooms will be operational once again in Taj Palace, Mumbai (which were closed because of destruction caused by terrorist attack) from December this year. So, as per my calculations, IHCL scrip will cross Rs.150 mark in March / April 2010....
Consolidated performance for 1st Half of FY 2010.....
Posted by : lalit_lav
i have bought bartronics 100shrs @ 135rs and also Indian hotels 100shrs @ 76.50..on your recommendations..
plz tell me target with time frame..
thanks in advance.....
Consolidated performance for 1st Half of FY 2010.....
Posted by : varun yennemadi
I do agree. But what foxes me is why isn`t the market giving it a high PE then? And do u have any idea on the cash flow part? That seems to be a concern as well right?
Normally, markets to tend to give a high PE to such stocks & should have been outperforming the sensex/nifty,instead it is underperforming!!
Anything to do with the QIp/FCCBs ?...
Consolidated performance for 1st Half of FY 2010.....
Posted by : My Multibaggers
Consolidated performance for 1st Half of FY 2010:-
Consolidated Sales for H1 2010 is Rs.337.7458 crores (out of this Rs.76.5801 crores revenues came from outside India); Interest outgo Rs.17.6789 crores; Net Profit is Rs.57.5491 crores. Diluted EPS after extraordinary items is Rs.14.44/- per share; Operating Profit Margin for H1 FY 2010 is 25.59% (in corresponding period last year it was 20.25%); Net Profit Margin for H1 FY 2010 is 17.04% (in corresponding period last year it was 14.60%)…..
Deferred tax of earlier year is Rs.15 crores. In 2nd quarter company has adjusted Rs.5 crores. In consequent 2 quarters company is about to adjust remaining Rs.10 crores deferred tax equally. As per guidance of Mr. Sudhir Rao, revenues from Rs.5000 crores “Aap Ke Dwar” order will start flowing from 3rd quarter of FY 2010. Chances are high that company will meet its guidance of Rs.150 crores in bottom line. But I am a bit skeptical about Rs.1000 crores top line guidance for FY 2010. Rs.810 crores to Rs.875 crores is achievable top line target for FY 2010. Rs.225 crores & Rs.250 crores are top line expectations for 3rd & 4th quarter of FY 2010 respectively.
Company will witness ‘Golden’ next year as another stream of income will start for the company; i.e., Advertisement revenues from 2000 Kiosks in Delhi which will start flowing from June 2010 / July 2010. FY 2010 Commonwealth games in Delhi will serve as “Sugar in Milk” for Advertisement revenues.
As always only cause of concern is high equity dilution rate & FCCBs.
All in all, from fundamental angle, satisfactory performance till date....
Equitymaster Subscription ???
Posted by : shreyasamin
r u a paid subscriber of equitymaster website ???
pls reply......
