vishnuvega
27-12-2007, 07:04 AM
Company is an IT Service and Product Company, with focus on IP based products & services, mainly in EMBEDED segment for verticles like - Wireless Telecom, Automotive, Multimedia and Transport. Company's strategic partnership with many leading European players in - Auto, Aerospace, Defense, Logistics and Telecom will keep the service part business growing at a healthy pace of around 30%.
The company has a 100% subsidiary in Germany - Arexera Search Technologies, which is operating in the field of search tools/engines. This company also has strategic investment [ 24.75% stake] in an another serch engine company - SEEKPORT AG [rest is held by two VCs]. Valuation of Arexera's stake in Seekport is estimated to be around $ 200 million [800 Crs], which is more then present Mkt cap of Aftek.
Arexera has also licenced its search technology to a Storage, Backup & Compliance solution company, who will market this solution with his own Product, across globe. For each of the software unit sold Arexera will get revenue. [ Appx. Euro 300 per solution, expects that company to sell 40-50,000 packages per annum.] This will add significant royalty income [adding directly to bottom line] to company in coming quarters, as sales will commence from Dec.'07 it self.
It's a ZERO DEBT company with cash of about Rs 250 Crs in balance sheet. Company will use about Rs 100 Crs in upcoming new facility at Hinjewari, Pune which will have seating capacity of 3,000 people and will be ready by Dec.'08. [Present manpower just 650].
At CMP stock discounts '09 earnings by less then 5 times and is looking too attractive. And if we consider cash in books, plus value of Seekport stake [which could be encashed by then] also, then the stock is virtually available free to investors. BUY with Confidence.
The company has a 100% subsidiary in Germany - Arexera Search Technologies, which is operating in the field of search tools/engines. This company also has strategic investment [ 24.75% stake] in an another serch engine company - SEEKPORT AG [rest is held by two VCs]. Valuation of Arexera's stake in Seekport is estimated to be around $ 200 million [800 Crs], which is more then present Mkt cap of Aftek.
Arexera has also licenced its search technology to a Storage, Backup & Compliance solution company, who will market this solution with his own Product, across globe. For each of the software unit sold Arexera will get revenue. [ Appx. Euro 300 per solution, expects that company to sell 40-50,000 packages per annum.] This will add significant royalty income [adding directly to bottom line] to company in coming quarters, as sales will commence from Dec.'07 it self.
It's a ZERO DEBT company with cash of about Rs 250 Crs in balance sheet. Company will use about Rs 100 Crs in upcoming new facility at Hinjewari, Pune which will have seating capacity of 3,000 people and will be ready by Dec.'08. [Present manpower just 650].
At CMP stock discounts '09 earnings by less then 5 times and is looking too attractive. And if we consider cash in books, plus value of Seekport stake [which could be encashed by then] also, then the stock is virtually available free to investors. BUY with Confidence.