praveen
13-09-2008, 11:32 AM
By Saarthi
Incorporated in 1990, Vakrangee Software Ltd. (VSL) is a leading provider of complete document and data management solutions encompassing large-scale data capturing & management, scanning, digitization and printing. It has three business segments, viz. document management services, printing management services and IT enabled services catering to various verticals like the Central and the State governments, banking & financial services industry, telecom, power, retail, aviation and others. Importantly, VSL has the largest scanning and variable data printing capacity in India with 5.6 million pages per day and 2.40 million pages per day respectively. Besides, the company is a pioneer in multi-lingual application software and has developed versatile document management software, which can be used in 13 regional languages. After its Voters Identity Card software, Electoral Roll software, Voters Data Entry Package, Cyber Saver etc., the company is in an advanced stage of developing Human Capital Management software & School ERP software which have a tremendous potential in the domestic market. Currently, VSL derives 75% of its revenue from government business while the balance comes from the private sector. Hence its clientele comprises various electioning offices, government & semi-government organisations, public authorities & local bodies, business associates and other private organisations.
Earlier, VSL was mainly into election commission work and database management but now the focus of the company is on e-Governance including document management projects and now to print management projects. It boasts of successfully completing the land record digitization project of Ghaziabad Development Authority, digitization of patent records at Indian Patent Office, Public Facilitation Office under MCA-21 and various other electioning projects for Maharashtra, Rajasthan, Chhattisgarh, Gujarat & UP. It has around 25 delivery centres in major cities across India. Apart from being an outsourcing partner of TCS and CMC, the company has a tie-up with Godrej & Boyce for jointly executing large election related projects at the National and State level. In December 2006, VSL imported the world’s fastest printing system - Kodak Versamark VT3000, which can print customized design from page to page. This machine has not only helped the company execute all election commission related work in-house but also enabled it to fetch more business from emerging opportunities like printing documents (including bills) for telecom companies, electricity supply entered into a strategic alliance with Eastman Kodak Company to offer mass customer communication practices in India and has been granted the Kodak Gold Plus accreditation status. Maintaining records and issue of voters’ identity card for Maharashtra, MP, UP, Gujarat etc. is an ongoing process for the company. For TCS, it is doing Registrar of Companies database management at 32 locations. Couple of months ago, it bagged a prestigious project from the chief election commission, Maharashtra unit for the Delimitation exercise, which onsists of redrawing the boundaries of the Lok Sabha and assembly constituencies to maintain an equitable distribution of population across constituencies.
This project involves preparation of the new electoral rolls in multiple copies of more than 7 cr. voters in the state. Today, e-Governance is the fastest growing business opportunity as well as a major social responsibility initiative in India. It is further fuelled by the implementation of Right to Information Act (RTI) by the Government of India (GOI), which makes it to have all the information in digital form. This implies not only conversion of historical data but also to maintain present as well as future information in digital form. In view of the innumerable ministries, departments, offices at the Central and State levels and other authorities, e-Governance has emerged as a huge business opportunity for the IT industry in general and for VSL in particular. Besides, it has started focusing on the private sector and intends to enhance the share from this segment to more than 50% of its total revenue. Given its rich experience and excellent track record, it is all set to capitalize on this huge opportunity in coming years.
Over the last 3 years, VSL’s topline and bottomline has been growing at an impressive CAGR of 90% and 160% respectively. Moreover, the company has consistently registered an OPM of more than 40% and NPM of 20%. For FY08, its revenue jumped up 90% to Rs.224 cr. while the its PAT more than doubled to Rs.50 cr. posting an EPS of Rs.23 on its equity of Rs.21.40 cr. Incidentally, despite a substantial fall in the stock market coupled with bearish sentiment in the stock market, warrant holders (including promoters) exercised the conversion option and got 22.50 lakh warrants converted into shares at Rs.241 per share in March 2008. Further, the company is contemplating to come out with right issue in near future. For Q1FY09 as well, VSL reported encouraging result and is expected to end FY09 with a total revenue of Rs.300 cr. and net profit of Rs.60 cr. i.e. an EPS of Rs.28. Thus at a reasonable discounting by 10 times of its FY09 earnings, the scrip has the potential to touch Rs.280 (i.e. 40% return) in 12-15 months. Although, promoters hold only 19% and do not enjoy a good reputation in the stock market it’s still a good bet as the company has bid for new high value private sector orders through its alliance with Eastman Kodak Co. Investors can buy this stock at sharp declines around Rs.180-190 level.
Incorporated in 1990, Vakrangee Software Ltd. (VSL) is a leading provider of complete document and data management solutions encompassing large-scale data capturing & management, scanning, digitization and printing. It has three business segments, viz. document management services, printing management services and IT enabled services catering to various verticals like the Central and the State governments, banking & financial services industry, telecom, power, retail, aviation and others. Importantly, VSL has the largest scanning and variable data printing capacity in India with 5.6 million pages per day and 2.40 million pages per day respectively. Besides, the company is a pioneer in multi-lingual application software and has developed versatile document management software, which can be used in 13 regional languages. After its Voters Identity Card software, Electoral Roll software, Voters Data Entry Package, Cyber Saver etc., the company is in an advanced stage of developing Human Capital Management software & School ERP software which have a tremendous potential in the domestic market. Currently, VSL derives 75% of its revenue from government business while the balance comes from the private sector. Hence its clientele comprises various electioning offices, government & semi-government organisations, public authorities & local bodies, business associates and other private organisations.
Earlier, VSL was mainly into election commission work and database management but now the focus of the company is on e-Governance including document management projects and now to print management projects. It boasts of successfully completing the land record digitization project of Ghaziabad Development Authority, digitization of patent records at Indian Patent Office, Public Facilitation Office under MCA-21 and various other electioning projects for Maharashtra, Rajasthan, Chhattisgarh, Gujarat & UP. It has around 25 delivery centres in major cities across India. Apart from being an outsourcing partner of TCS and CMC, the company has a tie-up with Godrej & Boyce for jointly executing large election related projects at the National and State level. In December 2006, VSL imported the world’s fastest printing system - Kodak Versamark VT3000, which can print customized design from page to page. This machine has not only helped the company execute all election commission related work in-house but also enabled it to fetch more business from emerging opportunities like printing documents (including bills) for telecom companies, electricity supply entered into a strategic alliance with Eastman Kodak Company to offer mass customer communication practices in India and has been granted the Kodak Gold Plus accreditation status. Maintaining records and issue of voters’ identity card for Maharashtra, MP, UP, Gujarat etc. is an ongoing process for the company. For TCS, it is doing Registrar of Companies database management at 32 locations. Couple of months ago, it bagged a prestigious project from the chief election commission, Maharashtra unit for the Delimitation exercise, which onsists of redrawing the boundaries of the Lok Sabha and assembly constituencies to maintain an equitable distribution of population across constituencies.
This project involves preparation of the new electoral rolls in multiple copies of more than 7 cr. voters in the state. Today, e-Governance is the fastest growing business opportunity as well as a major social responsibility initiative in India. It is further fuelled by the implementation of Right to Information Act (RTI) by the Government of India (GOI), which makes it to have all the information in digital form. This implies not only conversion of historical data but also to maintain present as well as future information in digital form. In view of the innumerable ministries, departments, offices at the Central and State levels and other authorities, e-Governance has emerged as a huge business opportunity for the IT industry in general and for VSL in particular. Besides, it has started focusing on the private sector and intends to enhance the share from this segment to more than 50% of its total revenue. Given its rich experience and excellent track record, it is all set to capitalize on this huge opportunity in coming years.
Over the last 3 years, VSL’s topline and bottomline has been growing at an impressive CAGR of 90% and 160% respectively. Moreover, the company has consistently registered an OPM of more than 40% and NPM of 20%. For FY08, its revenue jumped up 90% to Rs.224 cr. while the its PAT more than doubled to Rs.50 cr. posting an EPS of Rs.23 on its equity of Rs.21.40 cr. Incidentally, despite a substantial fall in the stock market coupled with bearish sentiment in the stock market, warrant holders (including promoters) exercised the conversion option and got 22.50 lakh warrants converted into shares at Rs.241 per share in March 2008. Further, the company is contemplating to come out with right issue in near future. For Q1FY09 as well, VSL reported encouraging result and is expected to end FY09 with a total revenue of Rs.300 cr. and net profit of Rs.60 cr. i.e. an EPS of Rs.28. Thus at a reasonable discounting by 10 times of its FY09 earnings, the scrip has the potential to touch Rs.280 (i.e. 40% return) in 12-15 months. Although, promoters hold only 19% and do not enjoy a good reputation in the stock market it’s still a good bet as the company has bid for new high value private sector orders through its alliance with Eastman Kodak Co. Investors can buy this stock at sharp declines around Rs.180-190 level.