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Wednesday, 18 January 2017

Few Interesting Facts:
_Sankhya Infotech Ltd_

Being in *defense and Aviation Simulations and training* company counts

Indian Army
Air Force
Indian Railways
Bharat Electronics
*DRDO*
as its major defense customers

+ Sankhya was first co in the world to launch web based simulation for Aviation industry
+Company's e-learning product is used by more than 40% of all bank employees
+Sankhya is also 1st Indian IT co to sell a software product to American Defense Organization
+Company successfully completed Mumbai Rail Vikas Corpn Simulation project ( most complex rail network in the world)

Sankhya's cash generation is superior to its peer *Zen Technologies*( which is in same verticals though different product)

_Sankhya is available at 49 cr Mktcap which is just 0.31xFY16 revenue_
_Sankhya is quoting at just 0.63times it's Book Value_

*Sankhya is grossly undervalued, especially if one considers that Zen Tech is trading at 13 times it's FY16 revenue and 5.35 times book value*

Moreover for H1, Sankhya had NP of 2.47cr whereas Zen had Loss of 7.78cr. Valuation gap is huge and expected to narrow down significantly which itself could turn Sankhya as multibagger. Other product companies are trading at astronomical valuations, niche product co like Sankhya is available at dirt cheap Valuations.

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