Vakrangee Software has target of Rs 129: Tulsian

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Vakrangee Software has target of Rs 129: Tulsian

Vakrangee Software has target of Rs 129, says Investment Advisor, SP Tulsian.

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ALSO READ See previous views by SP Tulsian See what other Experts & Brokerages are saying about Vakrangee See messages about Vakrangee Vakrangee BSE | NSE 31/05/12 Are Mutual Funds betting on Vakrangee?

Vakrangee Software has target of Rs 129, says Investment Advisor, SP Tulsian .

Tulsian told CNBC-TV18, "We have heard Nandan Nilekani saying the first UID card will be rolled out by February 2011 and I am banking very high on these UID Projects. I am not saying that Vakrangee Software will be the frontrunner because already ten companies have been identified of which TCS is one. But in the past we have seen that this company undertaking various projects on behalf of TCS as sub contractors and they had the joint venture with Godrej also."

He further added, "This company has developed their expertise in compilation of voting lists and pulling records the land and voter's records in Rajasthan, UP and Maharashtra. Their they have been successfully carrying out all these work for about last ten years for the election commission. We all know the norms or the conditions imposed by the election commissions are very stringent conditions and if you were able to meet those things I think they should be able to succeed in getting a larger share of subcontracting work for this UID project also."

"Coming on the financial performance, the company has posted an EPS of close to about 6. They had bad FY09 where they had to go for the write offs of various assets but I am quite hopeful and FY11 working, I wont be surprised if the company posts an EPS of close to Rs 14-15. Since the share is ruling at around Rs 117, I feel that it has to catch on in the next 2-3 months but for the day I have given a target of Rs 129. But over a 2-3 month horizon, I hold good potential for the stock to appreciate."

Vakrangee has touched an intraday high of Rs 123.15 and an intraday low of Rs 113.50. At 12:12 hrs the share was quoting at Rs 123.15, up Rs 5.85, or 4.99%. Market capitalisation stands at Rs 263.49 crore

The company's trailing 12-month (TTM) EPS was at Rs -8.29 per share. The latest book value of the company is Rs 125.60 per share. At current value, the price-to-book value of the company was 0.98. The dividend yield of the company was 0.81%.