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Hello Friends !!!

Here is an another investment idea which is an computer software company available very cheap in the market. Its Current Market Cap stands 320 Cr. and its Consolidated Revenue for FY 2015-16 was 710 Cr. Here are the precise research points :

BACKGROUND


Aurionpro Solutions Ltd is a leading provider of IP led IT solutions for the BFSI segment. The company provides solutions to corporate banking, treasury, fraud prevention and risk management, Internet banking, governance and compliance. They provide a balanced portfolio of Product Suites, Domain Focused Implementation Services and Outsourced Product Development. The company is headquartered in Mumbai. Their clients include more than 100 banks across the globe.
The company's dealPro is a Web-based, online trading and distribution application built on an open technology platform. dealPro primarily caters to banks, non-banking financial companies, mutual funds, insurance companies, corporate treasuries and other financial institutions. Their payments solution enables financial institutions to streamline and accelerate payments across a range of networks and channels, including automated clearing house, Check 21, card processing/associations and mobile payments. Cash management provides products and services, such as iCashPro, collectPro, divPro, PDCPro, mandatePro and currency chest management system to fit the needs of corporate clients. Financial supply chain management provides end-to-end management of the entire working capital management system.
The company plans to merge their wholly owned subsidiaries, namely E2E Infotech (India) Pvt Ltd, India and SENA Systems Pvt Ltd, India with the company.
The company intends to leverage their relationships with banking organizations, such as state and national banking associations and correspondent institutions such as bankers bank, and the correspondent area of Tier and II financial institutions. They propose to strengthen their treasury operations. They also propose to introduce products and services catering to equity and capital markets segment which would enable them to cover a larger spectrum of applications in the BFSI industry.

FUNDAMENTALLY SPEAKING :
  1. Firstly IT stocks have been trending upward nowadays, the reason is very clear, with dollar scaling towards Rs.70/$, IT companies with decent receivables from the exports tend to gain on conversion in form of exchange gains (which forms part of other income).
  2. If you look at P.E and Book Value of the company the company is deeply under-priced. Consolidated P.E stands at 5 as compared to industry P.E. of 17 and the Book value of the company is 267 as compared to CMP of 145.
  3. The Company's Financial too are attractive as far as profitability is concerned, Net profit in F.Y 2015-16 was just 12.29 Cr, whereas in current F.Y. it has already grossed up 34 Cr. Net profit with 2 quarters left.
  4. The Company provides digital payments as one of its operations and therefore will be huge beneficiary of demonetization, the Chairman during a recent interview spoke that digital revenues are likely to grow at 40-45% annually. For Detailed Interview visit http://www.moneycontrol.com/news/business/digital-revenues-growing-at-4045-annually-aurionpro_8091981.html
  5. Also, Debt Equity ratio of the company falls below 1, therefore the liquidity position is sound.
  6. Looking at the below excerpt, it can be said that the company is a cash rich company and also is regular in recovery of its receivables.

TECHNICALLY SPEAKING :

  1. The Stock is above its 20 day, 50 day, 200 day DMA/EMA/WMA. Therefore it is bullish.
  2. The Script has in short term breached the downward sloping trendline with good volumes and is comfortably trading above it as shown under :
  3. Looking closely at last 10 days price action, the stock if forming higher highs and lower lows with increasing volumes, which too is clear indication of a trend reversal as shown under:
  4.  Other Indicators namely ADX, MACD, ATR, RSI , MFI, OBV and Stochastic too provide bullish signals.
     Therefore technically too the script is bullish
    
    CONCLUDING DECISION :

     Investors can look forward at CMP of 135 keeping 119.80 as stop for positive returns
     
     Best wishes for your Investment !!!
     
     Thanks !!!


      Note : The above is just information available in public domain and therefore should not be taken as research report.

     Registration status with SEBI:  I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations.

     Disclosure : I personally do not have any holding in this script, Investors are advised to consult financial advisory before any Investments.

   


Disclosure
** This Blog, its owner, creator /contributor is not a research analyst and expressing opinion only as an individual investor in Indian equities. He is not responsible for any loss arising out of any information, post or opinion appearing on this blog. Investors are advised to consult financial consultant before acting on any such information. All information in this blog is posted for personal study, All information posted on blog is as available in public domain.





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