Smartlink Network Systems likely to test Rs 150: Equity99

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26 Aug, 2025 12:21

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Smartlink Network Systems is pioneers in brining IT Networking to India. It was first company to start local manufacturing of IT networking products in India. It has excellent service and support network across India.

Management has over two decades of experience in manufacturing, sales & marketing in the IT Industry. It has strong pan-India network of regional and national distributors. The company has a robust product portfolio and a nationwide reach through its network of national and regional distributors, resellers and system integrators.

The company’s business has been restructured into three wholly owned subsidiaries, each with a strong focus in their line of business. 1) DIGISOL Systems: The company is engaged in marketing of networking products within the domain of Converged Communications Solutions under the brand name DIGISOL. 2. Synegra EMS: The electronics manufacturing company with its own state-of-the-art manufacturing facilities committed to implementing the government’s “Make in India” mandate. 3. Telesmart SCS: The Structured Cabling products manufacturing company with its own

large scale state-of-theart manufacturing facilities committed to implementing the government’s Make in India mandate.

The board of directors of Smartlink Network Systems has approved a buyback proposal not exceeding 56 lakh equity shares (being 24.83 percent of the total paid-up equity share capital of the company) at Rs 120 a share for an aggregate amount of Rs 67.20 crore. A record date for determining the entitlement and the names of the equity shareholders to be eligible to participate in the proposed buyback is May 18.

Smartlink has a book value of Rs 142.34 implying P/B of 0.8x. It’s market is only Rs 255 crore with equity base just 4.51 crore shares. Promoters are holding 75 percent stake making it free float quite low.

Smartlink is a debt free company with continuing returning money to shareholders through dividend or buying back of shares. It has posted very good set of nos led by operational performance. In Q3FY18 it has posted profit of Rs 3.46 crore against Rs 1.41 crore.

It’s M9FY18 PAT was Rs 8.82 crore against Rs 4.47 crore YoY. FY17 was PAT was just Rs 5.17 crore which is way higher in M9FY18. Post buyback, equity base will again shrink, making it more attractive for long term investors. Looking at past financial record and management’s credibility we believe this stock is worth of Rs 150.