Limited downside in Compucom Software , says SP Tulsian, sptulsian.com.
Tulsian told CNBC-TV18, "Compucom Software is a Rajasthan based company and they have the presence in the IT education. They have about 50 schools in their fold. The promoters have gone ahead with the issue of warrants also by which they will be mobilising close to about Rs 40-45 crore. The face value of the share is about Rs 2 and it is ruling at close to about Rs 17. Couple of months back, the company has issued bonus share in the ratio of one share for every two shares hold. So, you see the share ruling at quite low price at Rs 17, since the share has recently gone ex-bonus and the face value of 2."
He further added, "If I go by the financials, they are likely to have an EPS of about Rs 2 for FY11 on a top-line of more than Rs 50 crore. But going forward, the management has aggressive plans. They are diversifying for which they have issued the warrants, they will be mobilising about Rs 35-40 crore which will be utilised by them to fund those expansions. So, I am quite positive, this should be taken more as IT education company. Considering that, I think that there is very limited downside, but once you have these announcements or the renewed steps taken by the company, the share can move by about 40-50% in about four-six months time."
