Prithvi- Rs 4 lacs to Rs 300 crs in 8 yrs
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Value buys - The intrinsic value is close to market price
Forum Discription: Companies that sit on a large amount of cash or investments or land bank plays or having high dividend yield can be categorised under this segment. These companies have lower downside risks
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=260
Printed Date: 03/May/2025 at 2:22pm
Topic: Prithvi- Rs 4 lacs to Rs 300 crs in 8 yrs
Posted By: kaushalchawla
Subject: Prithvi- Rs 4 lacs to Rs 300 crs in 8 yrs
Date Posted: 02/Sep/2006 at 1:40pm
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Hello Folks,
Please give your views on Prithvi Information Solutions. Is it a value cum growth buy at this point.
Warm Regards,
Kaushal Chawla ------------- Warm Regards, Kaushal |
Replies:
Posted By: basant
Date Posted: 02/Sep/2006 at 3:29pm
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Prithvii Information (CMP Rs 327) does appear value with growth. They have grown really big over the last 8 years. In 1999 they started with 25 people, did a turnover of Rs 4 lacs and should do about Rs 450 crores in the current year. Company is into enterprise application software and has diversified into e-governance, radio frequency engineering and optimization works for the telecom industry, business intelligence, data warehousing, data mining etc.. The company is run by a lady entrepreneur “Madhavi Vuppalapati” Interestingly the top management of the company are all technocrats Ms Madhavi is a Carnegie Mellon graduate and her brother V Satish Kumar is an IIT Alumni. Prithvii Information employs 700 professionals and this number should go up as well. The company covers the BFSI, manufacturing retail and pharmaceutical areas. The company wants to enter the process outsourcing and strategic consulting arenas In addition to this they intend to provide end-to-end solutions in various segments.
The financials look phenomena stock trades at less then 8 times current year earnings (first quarter EPS annualized). I do not understand small software companies but the kind of vision I was able to read at the company’s website and the scorching pace at which this company has grown over the last 7 years makes me believe that this company should very well and remains a value cum growth buy.. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: sajanvm
Date Posted: 02/Sep/2006 at 5:58pm
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I agree that on face value, the company looks v cheap. But, we need to investigate a little deeper. Have you seen their operating margins ? Ever wondered why they are abysmal compared to their peers ?
The answer lies in their onsite offshore mix, which if I remember right is something like 90:10. (Normal services companies would hve a mix like 40:60). This leads me to believe that they are mainly a body shopping organization which places people at client sites . Onsite margins are extremely low compared to offshore and hence their overall margin picture.
Now, the same situation can also be interpreted as an opportunity - ie if they can succeed in transorming their client accounts to an offshore model, their margins could go up substantially. However, having worked in the IT industry for many years, I think its a very big challenge.
So, should you bet on it ? My personal take is that when you have an NIIT Tech which is at 10 times earnings or a 3I Infotech which has a strong products business and is also at 10-12 times earnings, you don't need to punt on a Prithvi being able to transform its basic business model.
Sajan
------------- Sajan |
Posted By: basant
Date Posted: 02/Sep/2006 at 7:21pm
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Thanks for your input.You know I have always felt that except for the big boys Infy, Wipro, Satyam TCS and HCl tech nothing has evolved over the long term. There was a lot of chatter about geometric, Infotech,Polaris but they werre just not able to reach the desired scale. So therefore it becomes very difficult to analyse small software companies from the busines point of view. That is why I gave that caveat that I do not understand the smaller technology company in detail.
Prithivi is trying to ramp up its offshoring capacity at hyderabad and that could increase the margins but In IT I would listen to you more then any one else since you have been a part of India's technology symbol (Infy) for so many years.
Thank you again for pinting that out. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: sajanvm
Date Posted: 02/Sep/2006 at 8:41am
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The conventional wisdom says that for pure services plays, scale is most important. We need to see if mid caps such as NIIT Tech can grow. My own theory is that the biggies will progressively become interested in servicing only ultra large clients/contracts, leaving some space for the mid caps.
However, companies such as 3I and Nucleus who are focussed on the enterprise products business are extremely promising. The potential margin upside when AMC's get to a certain level can be a kicker. And hey, don't forget the valuations that Oracle is willing to pay to get its hands on an I-Flex. That story may get repeated. ------------- Sajan |
Posted By: nav_1996
Date Posted: 09/Sep/2006 at 5:47pm
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Sajan/Basant,
How do you compare 3i and Nucleus management. Though they have comparable valuations, I seem to prefer 3i because of their icici leneage. Also, 3i product revenue hasw grown faster than their services revenue. How about niche players like Geometric and tata elxsi. |
Posted By: basant
Date Posted: 09/Sep/2006 at 6:18pm
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Hi, I am weak at identifying tech companies as I do not undetand their businees model but I would go with you on 3i and rate it higher then Nucleus.Tata Elixsi is doing some very interetsing annimation work but that is getting diluted from their software revenues. Annimation has a huge future with all the potential work from Hollywood etc
You are from the tech industry how would you arte tata elixsi? ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: nav_1996
Date Posted: 09/Sep/2006 at 12:04pm
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Basant,
I was able to pick up some Tata Elxsi at 150 so it provided margin of safety, good div yield, Tata Brand and interesting areas like animation & product design. Also % of low margin business(System Integration) has gone down. So overall I like the company but I am not very comfortable about it at current prices (230). Also I don't see this becoming a typical multi-bagger as Tata Group is too big to focus on some thing like Tata Elxsi. But may be 15%-20% compounder for a couple of years. |
Posted By: basant
Date Posted: 09/Sep/2006 at 12:15pm
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Tata Group is too big to focus on some thing like Tata Elxsi.
This is the problem I see investing with the newer fast growing businesses within the Tata group. They cannot think beyond Steel, Auto beverages and software (TCS).
They had a great advantage http://www.theequitydesk.com/forum/forum_posts.asp?TID=202 - insurance telecom and http://www.theequitydesk.com/forum/forum_posts.asp?TID=103 - retailing through Trent but they seems to have given it away.That is why I have been upbeat on the http://www.theequitydesk.com/forum/forum_posts.asp?TID=201 - first generation promoters to give us multibaggers. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: sajanvm
Date Posted: 12/Sep/2006 at 4:16pm
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I was comfortable with Tata Elxsi at about 175. Sold off around 230. I like the niche. About your point that they are too small for Tata's to focus on - that may precisely be the reason for a merger with TCS. However, I am certainly not advocating buying the stock for that reason. To reply to an earlier question on 3I / Nucleus - frankly I do not have the knowledge to compare the 2. However, 3I was cheaper and hence that was my choice. While nucleus has many competitors since they operate in the banking space, 3I has a good presence in the insurance space where I have not heard about too many competitors (atleast from Indian software companies). ------------- Sajan |
Posted By: kulman
Date Posted: 12/Sep/2006 at 4:23pm
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Sajanvm,
Thanks for your views on 3i v/s Nucleus. Could you please elaborate on the same, as you seem to have knowledge (about competitors) about this BFSI sector.
Thanks ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: sajanvm
Date Posted: 12/Sep/2006 at 4:46pm
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For Banking space, there are any number of competitors - Iflex, Infy, 3I, Nucleus. While each may have a niche within the banking sector, its safe to assume that they all want to be one stop shops for their customers and new products will come in and increase competition.
------------- Sajan |
Posted By: kulman
Date Posted: 12/Sep/2006 at 4:56pm
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Thanks Sajanvm
It seems 3I is better than Nucleus, though Damani-fans out there may not agree. ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: omshivaya
Date Posted: 12/Sep/2006 at 10:30pm
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Yes kulman, the damani fans may say something like "nucleus is better than 3i" and has a better management and seems more open. Though non-Damani fans may disagree. However, personally speaking, Damani jee or otherwise, I feel better having a nucleus than a 3i, bcoz I feel their growth in coming years is going to be very good and also bcoz nucleus is very small right now, apart from its investor-friendliness, which are all my personal viewpoints.
------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: basant
Date Posted: 12/Sep/2006 at 11:41pm
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I do not think that we have a better judge of an IT company then Sajan, he has worked in a premier sofware company and I will go by his word.
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: hkumar
Date Posted: 27/Jan/2007 at 7:24pm
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Dear All I am an avid reader of The equity desk since last 3-4 months. The discussions on this forum are really great and very informative. Thanks a lot for all the members efforts.
To intrdouce my self, I am a finance professional working with a US Health care MNC.
Basant Ji : The Q3 results of Prithvi looks great, YTD 9 months EPS of INR 35 (approx) against 20 of last year.
But a strange trend in shareholding pattern,
Your views please on the same.
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Posted By: basant
Date Posted: 27/Jan/2007 at 10:11am
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Thank you. It is better to go by fundamentals of a company because the share of big stake holders declining is generally negative but in case you feel that the company is on track with the fundamentals these allied factors should be ignored. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: hkumar
Date Posted: 28/Jan/2007 at 12:05pm
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A drop of 20% holding of major stakeholders may be hinting at some problem in the organisation like: i) May be their offshoring site at Hyderabad is getting delayed. The execution of offshore centre is going to be the major driver for their margin improvements and stock rerating
ii) Any other internal issue, they reported Other Loss of Rs. 4 crore (reason unknown as of now)
There is rumour in the circles that Satish Kumar has further sold 700000 shares in the market this month.
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Posted By: tyler_durden
Date Posted: 04/Mar/2007 at 10:16am
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prithvi seems to be the most attractive scrip in mid cap software space.
all its peers are trading at a PE of around 20 and prithvi is doin at a pe of 6.3 despite of giving better profits and robust growth in eps. prithvi's eps has grown from 28.89 infy06 to approx 49(they will achieve it by the year end)... they will surpass their projected topline projections of 640cr and will do 690-710crores.. their offshore centre got delayed because they could not get site because of high real estate prices... it will start by end of this year and their npm will start improving... by fy09 prithvi expects its npm to improve to 30% from 12%(currently)... they re also into KPO and kpo is expected to grow at cagr of 50 till2010 and will become a 1$ billion industry...analytics is next big thing...prithvi will get 6-7% of their turnover from this...and margins are as high as 35%....sooner or later market will re rate this stock...and at cmp of 287 it s a steal... the stock will be a multibagger in years to come... moreover mcap to sales for prithvi is around 0.9 and that of geometric software is 4.... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: kanagala
Date Posted: 05/Apr/2007 at 9:09am
| How does the management of Prithvi compares with the Management of Yesbank, PRIL and NW18? Probably, quality of the management is the most important factor to invest in growth stocks. |
Posted By: jds_64
Date Posted: 13/Apr/2007 at 2:45pm
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Dear Sirs, Compared to established players, emerging stars offer better opportunities . I am a new member to the board and a value investor witha minimum period of 3 years to 10 years.
I personally feel Prithvi can emerge as a front line player.
Ihave made following analysis and also pasted below, extracts from the reports published in press.
Please share your views.
Positives for prithvi
1. Lehman bros. have picked up FCCB @ 314 to be redeemed in 2012 at 8.65% cumulative rate of interest or app 469 Rs. The amount is 50 mln US $ , probably equivaling to 225 cr Rs. This is raised for a few acquisitions which they have been eyeing for last 2 - 3 quarters. If this materializes then turnover can be app. 1100 Rs. and n.P. app. 100 crs., of course Eps will be stagnant. but, the co. can move into the big league. 2. They have appointed S.R. Batliboi & Co. , an associate of E & Y as auditors from 07 - 08. which shows They want to be more accountable and investor friendly. 3. Deutche Bank have picked up another 1,00,000 shares @ 268 aroud 28th March. Deutche bank have been negative on Indian market in general. 4. The new web site is much more informative . The negatives 1. Immature statements and practices of the management as can be seen from statements in press meets of mr. Satish kumar . 2. Delays in starting the ODC at 3. Un explainable sell of shares from original holders - if you see the pattern q to q. Shrimals, Rakhi Trading , Nemish Shah HUF and Origin Management and Mr.Satish kumar in personal capacity. 4. The current down turn in $ - Rs equation , possible Over all, I think it is a fundamentally good co. ably run by V. Madhavi with good intentions but, in experienced and immatue Either the market will respond only after the announcement of the acquisitions or the successful commencement of their ODC . Press reports published recently are as follows in Economic Times and Financial Express
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Posted By: kaushalchawla
Date Posted: 17/May/2007 at 12:46pm
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The results of this quarter are good, though looks like the NPM has reduced a bit. Sales growth is higher than PAT growth. ------------- Warm Regards, Kaushal |
Posted By: deepakralli
Date Posted: 16/Jun/2007 at 1:40am
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With a book value of 162 , eps of 49.78 and almost negligible debt, price of 270 seems to be very cheap. With 40-50% growth in for 2008 the stock needs to be rerated.
with a PE of 5.44, I do not understand why the stock is lying at such low levels.
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Posted By: basant
Date Posted: 16/Jun/2007 at 10:10am
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I do not understand why the stock is lying at such low levels.
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Same here. But I thought the same way last year and here we are! We need some body from the software sector to explain this situation Sajan made a valid point about their onsite/offshore mix and maybe the market does not seem enthused by their work! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tyler_durden
Date Posted: 18/Jun/2007 at 2:04pm
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The company operates from US thats the sole reason. Let the hyderabad centre start its operations the stock will be re rated...management is not perceived as very serious one..the hyderabad project is delayed for almost a year now..this is 2nd reason...else look at the financial performance the company...it seems like a value buy...strong growth in past years and very promising future..
the margins will improve and employee cost will come down..once hyderabad cantre is into action rising rupee is playing negative role for this company... i am still holding this stock..even after 4-5 months my return is 0 but i am sure that re PE re rating is going to take this stock to its 52 week high... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: tyler_durden
Date Posted: 18/Jun/2007 at 7:36pm
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Regards Prithvi :If the audited figures are correct and that is the numbers on which investors can take a judgement call then there are reasons why one can stay invested in Prithvi info. The profits have grown every year for the past few years. The year that came to end saw the NP and revenues going up by more than 50%.These nos are good by many standards.
Why the stock price is languishing is something that cannot be given a reason for.Maybe the market is waiting for triggers to give it better valuations because the significant negatives in the stock price are there in the form of: a) Too much dependence on US .Most of the job is done in US on shore. b) What the company can do to keep growing at this rate in the foreseeable future. c) The money whch they have raised from the IPo and the FCCB issue from lehmann brothers how are they going to utilise it. How the company will tackle these issues in the near future will dictate the direction of the stock price. Software services is getting commoditised to some extent but there is a lot of work which is still being out sourced and this is not some tap which may get closed in a moment . Margins of 30% and above are not maintainable in the long run in any industry and that is a common refrain.By that definition there are entrepreneurs who are in autos,airlines,financial services etc who have had margins of less than 15% but they do make out a profitable existence. It is the capability of the management and their ability to deliver which transforms a company. Prithvi info may or may not be able to deliver which is something only time can tell but the numbers which are visible to us and the story that they tell us ( cold facts)are some thing I would rather follow. Proffessionals in this business find them robust enough to lend them 50 million dollars with a conversion option and though they have taken a hit in the past and may do so in the future they are willing to wait for 5 years to see their money back, so at least their due diligence has shown the company to be robust enough.so my take is why not stick to the fundamentals of investment and ride the time out and see if we at least are able to beat the bank rate iin the next few years unless the situation really takes a turn for the down side when an exit with a loss can be considered.But lets give the idea some time to breathe before taking a call on whether to keep or discard the idea. Last quarter Prithvi touched Rs. 327. In Q-1 the offshore revenue will be strengthening the topline & bottomline. conservative estimate of EPS for 07-08 would be more than 60. 1.let us see what the acquisitions do to the scrip and maybe the delay in completing the acquisitions is taking its toll. 2.The other thing i would like to bring to ur notice is that regarding the share sales from the promoter group. V Satish Kumar May 18, 2007 May 24, 2007 Market Purchase 3,566,934 (19.73%) 50,000 V Satish Kumar May 11, 2007 May 17, 2007 Market Purchase 3,531,934 (19.54%) 35,000 V Satish Kumar May 07, 2007 May 10, 2007 Market Purchase 3,456,934 (19.12%) 35,000 V Satish Kumar May 03, 2007 May 09, 2007 Market Purchase 3,491,934 (19.32%) 40,000 V Satish Kumar May 04, 2007 May 07, 2007 Market Purchase 3,416,934 (18.90%) 40,000 V Satish Kumar Apr 25, 2007 Apr 30, 2007 Market Purchase 3,316,934 (18.35%) 100,000 V Satish Kumar Dec 22, 2006 Off Market (70,000) (0.39%) 3,386,934 (18.74%) 3,316,934 (18.35%) Origin Management Consultants Pvt Ltd Dec 04, 2006 To Jan 24, 2007 Jan 25, 2007 Market Sale 321,196 (1.78%) 321,196 There seems to be some selling before and now some buying by the promoter but the thing is the sale is an off market sale, could have been anything either a sale for personal use or for sale in the market thru an intermediary but the final shareholding at present seems to be more than what it was when the 18 month lock in period after the ipo in september 2005 got over .I may be way off the mark but the 18 or 20 lakh shares of the promoter group that have got into the float has increased the liquidity and till that gets absorbed the pain will linger. These may be extraneous factors but the floating stock etc in the market do have a role in the stock price and eventually will reflect in the stock price. See i am not trying to attribute the stock price to the brandnames among the shareholders.For eg Enam had 300000 shares as part of ipo allotment which the held on till lock in period and subsequently they have exited and so was the name of Nemish Shah (HUF) among the original allottees.But discounting all these factors the sheer audited nos tell a story on which i have entered and am holding. anyways nice discussing this with you.Lets wait out till 08 numbers beyond which shall take a decision to exit or stay put. ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: tyler_durden
Date Posted: 19/Jun/2007 at 1:12pm
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Prithvi plans to focus on KPO operations
The firm looks at setting up centres of excellence in telecom, insurance, retail, data-analytics and research at an investment of $0.5 m on each centre as part of the new focus Sreekala G Hyderabad Hyderabad Based Rs.452 crore Prithvi Information solutions is planning to focus on its strategic business unit engaged in knowledge process outsourcing. The company is looking at setting up centres of excellence in telecom, insurance, retail, data analytics and research at an investment of $0.5 million on each centre as part of the new focus. It is also eyeing a slew of acquisitions in the US and India and expects to add revenues of about $50 million by next financial year through the inorganic growth path. “We have partnered with leading academic institutes and corporates for setting up centers of excellence in different verticals. Our KPO operations are based in the US, where we employ a high-end workforce over 30 people, including PhDs. We are looking at expanding these operations. In two years, we will have over 200 employees spearheading KPO operations in India,” said Vuppalapati Madhavi, CEO and chairperson of Prithvi Information Solutions. Talking to ET, she said the company had tied up with IIIT-Hyderabad for setting up a centre of excellence in data analytics and research. “We are looking at utilizing the expiries and research base of IIIT for building a high end work force. Currently, about 20 students of the institute are closely associated with us for conducting research and data analytics,” she said. Similarly, the company has also forged ties with US based Carnegie Mellon University for building a center of excellence in retail. “We have also partnered with a US company for conducting high end research work in insurance. We are in talks with a few companies for our telecom vertical,” she said. The company is looking at closing about seven acquisition deals by next financial year. “We are targeting boutique companies with revenue ranging from $2 million to $10 million. These companies will be in niche areas of telecom, retail, BFSI and e-governance verticals and the acquisitions will help us to bridge services gap and to become an end to end technology solutions provider,” she said. The company had recently allotted zero coupon foreign convertible currency bonds (FCCBs) equivalent to $50 million, to Lehman Brothers International (Europe), at a conversion price of Rs 469.13 per equity share. “The proceeds of the FCCB issue will be utilized for the acquisitions and internal accruals will take care of the rest of the funding requirements,” Ms Madhavi said. Prithvi is also building a new offshore facility in Hyderabad at an investment of about Rs 30 crore, which will be operational by the end of this year. The company is also looking at increasing its headcount from 500 to 1,500. ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: tyler_durden
Date Posted: 19/Jun/2007 at 1:14pm
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basant ji i think this can answer our questions..
Reaching for the skies Prithvi Information Solutions is increasing its presence in the offshore business. It expects to improve its profitability in the next two years. ETIG spoke to Prithvi Information Solutions’ chairperson V Madhavi and CFO PS Shastry on the company’s future initiatives. The company had completed placement of zero coupon FCCB of $50 million in February, which was subscribed to by Lehman Brothers. The proceeds will be deployed to acquire overseas software boutiques, which have software facilities in India. The company is looking at a deal size of $2-12 million and price-sales ratio of 0.8-1.5. Prithvi is a mid-sized IT services and solutions company and is present in verticals including telecom, BFSI, healthcare and retail. The company reported a net profit of Rs 53.3 crore on sales of Rs 453 crore in FY06. The company’s margins were much lower in the past, compared to other IT companies of similar size. This was because the company generated as much as 90% of its revenue from onsite activities, which offer lower profitability than offshore services. Prithvi’s proposed acquisitions are expected to enhance its presence in the offshore software market. On the back of this, the company expects to improve its PAT margin from the current 9.5% to 12% in FY07, with a further improvement of 15% in FY08. Though margins are expected to expand, the increased focus on offshoring will drag down the topline, since billing rates for offshore are much less than those for onsite work. Typically, onsite services attract a rate of over $55-60 per man hour, while offshore projects deliver $28-30 per man hour. In order to keep the topline growth intact, Prithvi is making an attempt to increase revenue per customer through higher client engagements. The company earns most of its revenue from the US market. Out of its 75 existing clients, 70 are based in the US. Thus, it is highly susceptible to variations in the US economy. In order to decrease its dependence on the US market, it is taking initiatives to tap opportunities in Europe and the Middle East. At present, it has submitted proposals for three projects for the Qatar government in the field of telecom and e-governance. If successful, Prithvi will add $15 million to its kitty within a span of 18 months. The decision on this is expected by June. At present, Prithvi has an order book of $175 million to be executed in next 18 months. It expects to close FY07 with sales of Rs 700 crore and Rs 85 crore in PAT. The company’s revenue for FY08 is expected to grow by over 21% to Rs 850 crore, while PAT is likely to rise by 50% to Rs 127 crore. ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: tyler_durden
Date Posted: 19/Jun/2007 at 1:20pm
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from current profit of 53 crores the profit will rise to 127 crores by fy08...The EPS will expand from 50 to more than 100...and with offshore operations kick starting...company exploring other markets such as europe and middle east....and acquisitions will make this scrip command the right PE in coming 2 years...
company do has a vision for the future as can be seen in following 2 posts... even if rerating does not happen and prithvi goes on with a PE of 5.5 (its current PE) the price will rise to 550 by fy08 ..i.e double from now...and if PE expands and is in vicinity of its peers..i.e. 10-14..we can expect this to be a 4-5 bagger... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: kaushalchawla
Date Posted: 19/Jun/2007 at 7:30am
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As this company depends a lot on US and has the concept of onsite development, any slowdown or deteoriation of US market will hit this company very steeply. that could be the reason market does not gives it rich valvuations. With lot of voices talking about US recession, this stock could give a hard time.
Please be aware of this before investing in this company. This company is not bad, but the model is not very good. This is the inherent negative in the business model. Thanks.
------------- Warm Regards, Kaushal |
Posted By: jds_64
Date Posted: 25/Jun/2007 at 9:31pm
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Dear Kaushal,
My logic for investing in this co. has the following points.
1. The Lehman factor :- If Lehman can find it attractive for a 5 yr perspective in FCCB issue, at a price of 465 odd , giving an annulized yield of app. 8.5 % on their purchase price of app. 315 , there is limited risk.
2. The auditors for lehman are E & Y, the world top 5 , they must have performed due dilligence, before investing , now, prithvi has also changed its auditors to Batliboi & Co., an associate with 100% stake of E & Y .
So, we will definitely get much clearer picture by quarter end.
3. Technically , on a weekly basis, the share price has formed a down slanting wedge pattern, with bottom around 250 - 270 and top coming down from 500 to 400 to 320 odd .
Usually an upward breakout happens from such a pattern , so, we need to watch the price closely .
4. The triggers for the price to move could be announcement of the awaited acquisitions may be with the announcement of the june quarter results.
5. Usually the market takes its own time in re rating a stock, instances can be Rolta, HCL Info, GTL, NIIT, NIIT Tech or a Nucleus Soft , before the operators take their position .
And multibaggers are easy to come with first generation entrepreneurs , so, I am cautiously optimistic about Prithvi.
Any healthy discussion always welcome.
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Posted By: tyler_durden
Date Posted: 26/Jun/2007 at 4:35pm
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trading volumes have crossed 3 lakh shares when the total float (just excluding promoters is 1.24 crore). Also the stock has appreciated by more than 5% in the last 2 days. ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: jds_64
Date Posted: 26/Jun/2007 at 9:12pm
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Satishkumar has acquired a further 45k shares in off market deals.
Seems , he is trying to improve image .
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Posted By: tyler_durden
Date Posted: 26/Jun/2007 at 11:39am
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again up more than 5% with very good volumes... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: tyler_durden
Date Posted: 28/Jun/2007 at 12:03pm
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Lalit Thakkar, Director Research of Angel Broking feels that if the offshore revenues of Prithvi Information increased to proportion of 20-25% of sales, the stock to get significantly rerated at a PE of 5. So the upside is quite immense.
Thakkar told CNBC-TV18, “Prithvi Information Solutions was relatively newly established in the year 1998 and the company came out with an IPO in the year 2005. In a span of 7 years, the company is now clocking revenue of around Rs 700 crore and the profits are almost at Rs 100 crore.” He further added, “The company is onsite centric module where offshore components is around 12-13% but at the same time these offshore components which was only 4% three years back is now 15% and the management is confident of taking it to and we feel that management will be able to take it to 25% in the next two years.” “If you look at the valuation of the company, its marketcap is hardly Rs 500 crore, so you are getting a company at a valuation around 5 PE. We think that it is a matter of time that once the offshore revenues if it is increased to proportion of 20-25% of sales we expect the stock to get significantly rerated at a PE of 5. We think that upside is quite immense.” ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: tyler_durden
Date Posted: 28/Jun/2007 at 12:05pm
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angel broking has given a year end target of 485 for prithvi.... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: basant
Date Posted: 28/Jun/2007 at 12:10pm
|
So they finally listened to you. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tyler_durden
Date Posted: 28/Jun/2007 at 12:21pm
sir it was you who actually started this thread....i just held on to my investment which i made at 270/- ... now waiting for the company to get re rated...  ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: tyler_durden
Date Posted: 28/Jun/2007 at 4:11pm
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awesome volumes today in prithvi... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: dhanaji
Date Posted: 28/Jun/2007 at 5:57pm
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Prithvi will acquire a mid seized US company engaged particular in the healthcare, vertical...... ------------- dhanaji |
Posted By: tyler_durden
Date Posted: 28/Jun/2007 at 6:10pm
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acqisition is on the cards ... but that rumor or news is on for a long long time ... i too have read about it and heard from few frnds... it wud be great if company can announce good numbers + acquisition...stock will be on fire. ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: kaushalchawla
Date Posted: 28/Jun/2007 at 8:42pm
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Risk factors are a bit more in this one as compared to others.....hence less attention to it.
Operators ka paisa chahiye ise upar uthaane ko......when they are bored of playing other stocks, they will definitely come to this stock as PE is less and can be easily jacked up.... ------------- Warm Regards, Kaushal |
Posted By: tyler_durden
Date Posted: 28/Jun/2007 at 8:47pm
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risky only as in their business is running from USA...else rising rupee is concern for even infy and tcs... prithvi is trying to get into europe and middle east...+ with some acquisitions picture will become rosy.. ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: xbox
Date Posted: 28/Jun/2007 at 5:41am
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In IT, leaders are the only investment-worthy candidates. ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: investor
Date Posted: 28/Jun/2007 at 9:37am
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Is Prithvi a genuine story or is it another case of "too-good-to-be-true" ?
------------- The market is a place where people with money meet people with experience. The people with experience get the money while people with money get experience! |
Posted By: basant
Date Posted: 28/Jun/2007 at 10:39am
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You should know better then all the non techies on this forum. It looks priced like a commodity company. Someone did remark earleir that chjanging the onsite-offshore mix is easier said then done. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: nav_1996
Date Posted: 29/Jun/2007 at 9:27am
| I had similar opinion about Rolta but it went up 5 times after sold :( |
Posted By: tyler_durden
Date Posted: 03/Jul/2007 at 5:00pm
from 265 level the stock has moved smartly to 350 ... volumes re really good for past 10 days or so... hope the rally continues  ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: kaizenbudhi
Date Posted: 04/Jul/2007 at 5:14am
| promoter has been buying shares fot the past few months now. bought 4 lakh even today. not sure, if anything could be comprehended thru this |
Posted By: tyler_durden
Date Posted: 04/Jul/2007 at 11:32am
promoter buying is a good sign i think  ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: tyler_durden
Date Posted: 25/Jul/2007 at 7:06pm
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Goldman Sachs-Mauritius buys 2.3 lakh shares at Rs 348.8/sh...5/july/2007.. Jp Morgan Securities buy 2.2 lakh shares at Rs 337.9/shMerrill Lynch Capital Markets sells 1.75 lakh shares at Rs 330.8/sh the stock is trading at a pe of just 3 to the forward eps as given in the guidance of the company....god knows when will this stock be re rated.... i think this one will always remain cheap ...  ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: xbox
Date Posted: 25/Jul/2007 at 5:46am
Aisa to nahi FII sochate hai prithavi Info is real-estate company.  ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: kaushalchawla
Date Posted: 25/Jul/2007 at 7:37am
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I had discussed the reasons of why it might not be rerated so soon earlier in this thread. Please have a look at it. ------------- Warm Regards, Kaushal |
Posted By: tyler_durden
Date Posted: 26/Jul/2007 at 12:49pm
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i had read your post kaushal ji.....mkt is a strange place...we can bet money on those picks where we haven't yet earned money but the pick which has shown consisten growth of 50%+ for past few years does not evoke interest in people...this year itself despite of all hue n cry prithvi will do an eps of around 100 ... cmp is 300 ...wooo ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: kaushalchawla
Date Posted: 26/Jul/2007 at 8:25pm
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I also used to think a lot in this way, but i have realized that somewhere future expectation also come to play in the picture.
Some share prices rise because of very high performance expectation and they rise much ahead of time.......some dont expect a good future and hence keep on lagging.......
the big trigger, i think, will be offshore component and more revenues from markets other than USA. If this does not happens, it's a bit risky stock.
------------- Warm Regards, Kaushal |
Posted By: kaizenbudhi
Date Posted: 28/Jul/2007 at 10:55pm
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Till the time company is growing & its profits are rising, its only a matter of time that market stops ignoring this stock. A lot of time there are companies which keep on getting ignored by market for whatever reasons. and there are logical minds which definitely find at least one reason for it. I also being one of them
However, U are getting a company of potentially 1000 crore turnover at a m cap of 580 crores and having reserves of 275 crores. and that too at such a low PE. plus with a possibility of new takeovers. and negligible debt.
My Perspective - I would have preferred to buy out this company if I would be an owner of any bigger software services company(with good offshore support).
|
Posted By: tyler_durden
Date Posted: 06/Aug/2007 at 12:10pm
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http://myiris.com/newsCentre/newsPopup.php?fileR=20070801125938166&dir=2007/08/01 - http://myiris.com/newsCentre/newsPopup.php?fileR=20070801125938166&dir=2007/08/01
Net profit dropped for the first time QoQ .... even YoY the profits re stagnant this time...prithvi is feeling the heat this time.... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: kaushalchawla
Date Posted: 21/Aug/2007 at 9:20am
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Prithvi trading at 450 Cr MCap.....probably this much might be the cash with the company itself......at 5X its last 12 months earning. Everything is IT section ki vaat lagi hai.... ------------- Warm Regards, Kaushal |
Posted By: basant
Date Posted: 21/Aug/2007 at 10:09am
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If you are sure about the cash equalling close to the current market cap and the company is not burning cash this should be the most compelling reason to buy the stock. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: equity-shishya
Date Posted: 28/Aug/2007 at 3:59pm
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Even after discounting some of the negatives mentioned in the some of the posts (On/Off shore mix, proft margins), surely Prithvi deserves a higher PE than 6 ! It has been growing at more than 50% consistently
It looks a good candidate for a PE rerating that Basantji talks about. But, dont if there is something else that the market is wary about .
One more technology company that baffles me about valuation is Helios Matheson. It is trading at a trailing PE of 4 ! It also has track record of growing at more than 50%.
It has a negative hangover from it's litigation with vMoksha. But I dont know if any other problems exist ..
Does any of the TEDies follow Helios Matheson?
|
Posted By: tyler_durden
Date Posted: 28/Aug/2007 at 4:34pm
ask me about prithvi ...  ... of all the TED stocks i was caught in this one only..because numbers were so compelling....i dont know PE rerating will happen or not...and with dollar ruppee thing going on + us slowdown ...i have exited IT stocks...prithvi will surely get 50-60% boost by next 6-9 months because their hyderabad center is about to start finally....and their 50% + growth rate for last so many years hasn;t attracted a lot of people....better to switch on to those stocks where we re sure to get better returns....------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: India_Bull
Date Posted: 28/Aug/2007 at 8:02pm
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My inner voice says if Infy/TCS are not perfoming on the bourses, so will the other two tier or three tier and so on !! ------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: xbox
Date Posted: 28/Aug/2007 at 5:47am
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This is power of sector. When sector was in limelight NIIT, GTL, Silverline were more appealing and now even INFY is less appealing to most.
But sticking to sector leaders pays... ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: koodala_sangama
Date Posted: 29/Aug/2007 at 10:04pm
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Wow! I have met Madhavi Vuppulapatti few time while I was at Carnegie Mellon. I knew they had a startup but didn't know they went public and are now being discussed here !! |
Posted By: tyler_durden
Date Posted: 29/Aug/2007 at 10:19pm
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any insider info brother on prithvi ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: koodala_sangama
Date Posted: 29/Aug/2007 at 10:51pm
Sorry, nothing. I did not even know that the company has scaled up this much until today. |
Posted By: hkumar
Date Posted: 07/Sep/2007 at 8:49pm
| This stock definetly reflect "If you could tell the future from a Balance Sheet then accountants and mathematicians would be the richest people in the world" such a stong balance sheet and very poor stock performance |
Posted By: kaizenbudhi
Date Posted: 10/Sep/2007 at 6:15am
| UBS SECURITIES ASIA has bought 2 lac shares few days back. |
Posted By: tyler_durden
Date Posted: 10/Sep/2007 at 11:49am
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prithvi ... yeh share apne naam ki tarah hai...bilkul zameen par .... dont know when will value unlock.....i had broken up with prithvi after a long waiting period.....why put money in a stock which is in coma when so many lively stocks are there ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: India_Bull
Date Posted: 11/Sep/2007 at 12:39pm
------------- India_Bull forever Bull ! www.kapilcomedynights.com |
....
dont know when will value unlock.....i had broken up with prithvi after
a long waiting period.....why put money in a stock which is in coma
when so many lively stocks are there Posted By: kaizenbudhi
Date Posted: 09/Oct/2007 at 2:50am
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Acquirer : J P Morgan Securities Ltd PACs : Copthall Mauritius Investment Ltd & Bluebay Mauritius Investment Ltd has bought 4.94%(892,506 nos.) of prithvi on oct 03
|
Posted By: xbox
Date Posted: 09/Oct/2007 at 6:06am
| They are also in 'that' race. |
Posted By: tyler_durden
Date Posted: 11/Oct/2007 at 6:16pm
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contrarian approach...everyone is exiting IT and they re getting into it....
prithvi remains a value buy but then dont expect more than 20-25% returns....i was badly caught in this one... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: basant
Date Posted: 11/Oct/2007 at 7:23pm
|
Contras in this raging bull market - opportunity cost is very high. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tyler_durden
Date Posted: 11/Oct/2007 at 7:30pm
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you re right...it paid but that was peanuts....it goes down to 260 and becomes super value at a pe of 5 then bounces back to 325 and goes back to 260.... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: kaizenbudhi
Date Posted: 31/Oct/2007 at 5:59am
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Prithvi up 19% today.
Prithvi Information Solutions Ltd has informed BSE that the Board of Directors of the Company at its meeting held on October 31, 2007, inter alia, has taken note & ratified the MOU signed for acquisition of AGADIA SYSTEMS INC. of New Jersy, USA for a valuation of USD 4.50 Millions.
|
Posted By: rishikesh_m
Date Posted: 18/Mar/2008 at 1:05am
| Is Prithvi a Value Buy at these levels ?!! CMP is 151. |
Posted By: basant
Date Posted: 18/Mar/2008 at 8:28am
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I would not buy this. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Jaydhruv
Date Posted: 26/Oct/2008 at 9:47am
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Basantji
right now Prithvi is in 30's with pe of 1
does it not make sense to start collectign this.
|
Posted By: basant
Date Posted: 26/Oct/2008 at 10:24am
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NO! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kanagala
Date Posted: 26/Oct/2008 at 10:50am
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Satyam is trading at PE of 5. Why would some one invest in mid cap IT companies when proven companies are available at those valuations.
------------- While one person hesitates because he feels inferior, the other is busy making mistakes and becoming superior. |
Posted By: subu76
Date Posted: 27/Oct/2008 at 1:49pm
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Prithvi is a C grade IT services company....We know what is happening to the A grade blue chip IT service companies in India.
When the bull market comes around (take your pick on the number of years) this kind of company might do well.
Till then 0 CMP is the floor.
Also, expect a lot of bad news on the earnings front from this sort of companies.
|
Posted By: furkanalam
Date Posted: 27/Oct/2008 at 2:15pm
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There are so many great companies at such low valuations.....Why bother abt such C grade companies....
|
Posted By: Nitesh_Inc
Date Posted: 02/Nov/2008 at 8:47pm
Please give examples of the A and B grade companies quoting at low valuations.
I am a novice. Please enlighten me with your thoughts. ------------- An investor convinces himself, an analyst convinces others. |
Posted By: Mohan
Date Posted: 03/Nov/2008 at 9:56am
Bluechips in the SENSEX and NIFTY for starters.. ------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: vijaygawde
Date Posted: 04/Nov/2008 at 8:46pm
|
What I learnt from fom friends in IT industry is Prithvi is merely a ''Body Shopper" and will remain cheap for ever unless they create offshore development infrastructure. I would rate Prithvi and Teledata in the same category when it comes to corporate governance.
------------- Diversification is protection against ignorance, it makes little sense for those who know what they’re doing. |
Posted By: subu76
Date Posted: 05/Nov/2008 at 12:25pm
|
Agreed with you friends. The fringe s/w outsourcing companies face a very difficult time scaling up simply because when the contract size becomes significant, a biggie can come over and make an offer which the client can't refuse. (Like..take one head and get one free etc)
Now, if the small s/w company has a specific domain competency, a domain where it's strength far outweighs the biggies...that might get interesting....i donno too many examples though.
|
Posted By: subu76
Date Posted: 10/May/2009 at 9:54am
| Deutsche bank alleges 40 cr swindle by Prithvi |
Posted By: khin007
Date Posted: 25/Mar/2010 at 3:16pm
| is it worth to by at CMP of 63 ? |
Posted By: nav_1996
Date Posted: 25/Mar/2010 at 4:06pm
| No. Keep Away. There are better stocks out there. |
Posted By: vijaygawde
Date Posted: 25/Mar/2010 at 4:40pm
|
Read at this before you leap.... http://www.moneylife.in/article/8/4030.html - - Prithvi Info Solutions: Why regulators are silent over the scandalous saga? This IT solutions and engineering services company has been involved in all kinds of financial manoeuvrings. However, regulators are looking the other way........ MoneyLife ------------- Diversification is protection against ignorance, it makes little sense for those who know what they’re doing. |