KLG is a Tier - III Software Company. It recently associated itself with L&T InfoTech to market the project management application "Inspire". the company also bagged a Rs 72 crore order from the Rajasthan Govt to bring about efficiencies in the power distribution business. The valuations are how ever not cheap when one compares them to the other companies in the same league.

The company has been reporting consistent increase in sales over the past four quarters and the new orders suggest that this momentum should continue.

All said and done unless you are very sure about a small cap company in software I would not suggest you to take an aggressive position. After the initial small caps Infosys technologies  Wipro, Satyam I have never come across a real money spinner in the IT small cap space. SO you would need to handle these companies with care and caution unless you are very sure about them. Apparently the numbers are improving..

Why don't you look at Geometric &  Subex?. I would put them on an upper scale then KLG 

Typo in EV, should be around 633 cr. jayendra

27th Aug, '07 : KLGSystel Ltd Acquires 51% Stake In Atlantis Lab: KLG Systel Ltd, the leading knowledge-based IT-centric Business Life Cycle Solutions company, today announced the acquisition of a 51% majority stake in Atlantis Lab Pvt Ltd, a dedicated engineering solutions company with over 130 employees. Atlantis Labs will now form a subsidiary of KLG Systel Ltd., catering to the strong domestic market, while also tapping Engineering Services Outsourcing opportunities from developed countries such as North America and Europe.

Atlantis Lab’s current service offerings include product design, design automation, design simulation, tool design, design data migration, and PDM/ PLM solutions for the growing automobile, aerospace, Industrial machinery and Heavy Engineering markets.

The relationship will also provide KLG Systel an opportunity to widen its reach to the 3 design hubs of the country which are Chennai, Pune and Bangalore. Atlantis Lab already has a strong base in these cities.

KLG Systel plans to grow the newly acquired subsidiary to an estimated 1000 design & analysis seats by the year 2008. The new subsidiary will focus on Automotive, Aerospace, Industrial Machinery, Heavy Engineering, Ship Building, Power and Process verticals where there is a strong demand for Product Design and Product Life Cycle solutions and services.

The new subsidiary will offer a state of the art design solution and services like FEA (Finite Element Analysis) / FEM in static, vibration, crash, impact, CFD (Computational Fluid Dynamics), NVH (Noise Vibration Harshness), BIW weld fixtures, Mold Flow analysis, Reverse Engineering, Electronics & Navigation systems, Technical Documentation, NC path generation, Plant Design, Plant stress analysis etc. This design centre will have an ultra modern RPD (Rapid Prototyping) and testing facilities for the industry, providing KLG Systel’s clients to carry out live prototyping and testing of the designs being delivered. Currently there are very few design centers in the world, which offer a complete solution from design to prototyping and testing.

The coming years will see the subsidiary setting up ODC (Offshore Design centers) for its Global and Indian clients. These will be capable of designing and developing complete products from India giving competitive edge to its clients in terms of productivity and value.

Seeing the high global demand for design and engineering services, KLG Systel has already initiated work in this area by setting up an infrastructure for 1000, state of the art design and analysis stations at its Headquarters in Gurgaon (Haryana), India.

KLG Systel is already a strong player in the Power, Process, Petroleum, Ports & Airports, Roads & Highways, Home Building, Ship Building, Automotive and Metal industries.

KLG Systel has extensive experience and expertise in the Plant Life Cycle Solutions (Plant Design Solutions) business, which has been its stronghold since the inception of the company, providing solutions to major oil refinery, power plants and engineering construction projects.

Over the past two years, KLG Systel has also been making successful inroads into the Product Life Cycle Business (Computer Aided Mechanical / Electrical Design solutions) and is now in a position to offer art-to-part solutions to the design and manufacturing segment in India.

Worldwide the Engineering Services market is making great strides. The recent NASSCOM BOOZ Allen Hamilton study of international trends in Engineering Services Outsourcing markets, predicts that by 2020, 25 to 30 percent of the projected $225 billion global offshore engineering services market could belong to India.