SANKHYA INFOTECH LTD: IT Co with likely play of Defense and Aerospace
TP Rs 45 in 2 months,Rs 150 in 30 months
Hyderabad based Sankhya Infotech Ltd, may witness HUGE UPSURGE in its business in coming years due to strong emphasis of Modi govt on Make In India, domestic production of Defense equipment and growing clout of Aerospace.
Its solutions are used by many Aviation schools and Aerospace companies.
SIL offers several innovative products and services for Aerospace and Defense industry. SIL is catering to following segments:
DEFENSE
AEROSPACE
BFSI
TRANSPORT
ENERGY
HIGHER EDUCATION
SIL is world's FIRST company which offered remote training facility for any airlines in the world.
SIL has partnered with various Defense PSUs and Defense Labs . And its solutions of advanced training programs suitable for ALL 3 arms of defense forces i.e. Army, Airforce and Navy.
BIG DEVELOPMENT: One American defense Contractor has tied up with SIL to integrate SIL's solutions with their own solutions.
For Aeropace industry, SIL offers following solutions:
TMIS
LMS
LCMS
Crew Rostering
Desktop Simulations
For Defense industry, SIL offers the following:
TMIS Defense
LMS
Simulators
Video integration
SIL's other portals of BFSI, Higher education are also doing well. However, SIL expects HUGE HUGE growth in its size from Aerospace and Defense segment.
FINANCIALS:
9m/FY16 FY15
Income 115. 182
PAT 3.96. 4.14
Equity 11.24
EPS Rs 3.52. 3.68
BOOK VALUE Rs 65
For FY15, SIL had earned PBT of Rs 5.27 crores. PAT Rs 4.24 crores( excluding deferred tax and prior year provision)
FY16E. FY17E
Income. 175. 240
PAT. 6.20 10.15
EPS. 5.50. 9.00
RATIONALE FOR RECOMMENDATION:
1) SIL is trading at 5xFY16Eeps
2)Stock is available at 3xFY17Eeps
3) Current market cap is Rs 32 crores which is 0.18xRevenue. For a software co, such valuations are really low
4)Book Value is Rs 65. Stock is trading at 0.43xBValue
5). Finally, SIL will be one of beneficiaries from govt's thrust on MAKE IN INDIA for Defense and Aerospace.
If investors have patience to hold SIL for 2-3years, stock should provide REAL MULTIBAGGER wealth enhancement. TP 150 in 30 months
TP Rs 45 in 2 months,Rs 150 in 30 months
Hyderabad based Sankhya Infotech Ltd, may witness HUGE UPSURGE in its business in coming years due to strong emphasis of Modi govt on Make In India, domestic production of Defense equipment and growing clout of Aerospace.
Its solutions are used by many Aviation schools and Aerospace companies.
SIL offers several innovative products and services for Aerospace and Defense industry. SIL is catering to following segments:
DEFENSE
AEROSPACE
BFSI
TRANSPORT
ENERGY
HIGHER EDUCATION
SIL is world's FIRST company which offered remote training facility for any airlines in the world.
SIL has partnered with various Defense PSUs and Defense Labs . And its solutions of advanced training programs suitable for ALL 3 arms of defense forces i.e. Army, Airforce and Navy.
BIG DEVELOPMENT: One American defense Contractor has tied up with SIL to integrate SIL's solutions with their own solutions.
For Aeropace industry, SIL offers following solutions:
TMIS
LMS
LCMS
Crew Rostering
Desktop Simulations
For Defense industry, SIL offers the following:
TMIS Defense
LMS
Simulators
Video integration
SIL's other portals of BFSI, Higher education are also doing well. However, SIL expects HUGE HUGE growth in its size from Aerospace and Defense segment.
FINANCIALS:
9m/FY16 FY15
Income 115. 182
PAT 3.96. 4.14
Equity 11.24
EPS Rs 3.52. 3.68
BOOK VALUE Rs 65
For FY15, SIL had earned PBT of Rs 5.27 crores. PAT Rs 4.24 crores( excluding deferred tax and prior year provision)
FY16E. FY17E
Income. 175. 240
PAT. 6.20 10.15
EPS. 5.50. 9.00
RATIONALE FOR RECOMMENDATION:
1) SIL is trading at 5xFY16Eeps
2)Stock is available at 3xFY17Eeps
3) Current market cap is Rs 32 crores which is 0.18xRevenue. For a software co, such valuations are really low
4)Book Value is Rs 65. Stock is trading at 0.43xBValue
5). Finally, SIL will be one of beneficiaries from govt's thrust on MAKE IN INDIA for Defense and Aerospace.
If investors have patience to hold SIL for 2-3years, stock should provide REAL MULTIBAGGER wealth enhancement. TP 150 in 30 months
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