HIDDEN GEM "VIRINCHI TECHNOLOGIES LTD"(BSE CODE:532372)AT 11/- TARGET 22/- & 35/-
STOCK : VIRINCHI TECHNOLOGIES LTD Trading in BSE CODE : 532372
CMP : 11/- Promoters Buying Heavily….. Increasing Stake
Target : 22/- to 35/- in Short term and Medium terms (In this Weak Market Good time to buy this worthy stock to get multi Returns in very Short time.)
Last 6 Months Given Calls 1) PITTI Laminations at 37/- Now 95/-
2) Venus Power at 7/- Now at 21/-
3) LGS Global at 45/- Now at 100/-
4) Avon Organics given at 20/- Now 30/-
5) IFCI at 20/- Now at 40/-
6) NATCO at 350/- Now 435/- ( I given call in 2009 at 40/- Now 445/- almost 10 times return)
7) TechTran Polylences at 22/- Reached 29.5/- in 3 days time.
8) Rathi Steel & Power at 11/- Reached 15.85/- in 3 days time.
Now we suggesting Buy and hold VIRINCHI TECHNOLOGIES LTD with 11,000/- rupees for 1,000 shares and hold will get 35,000/- to 57,000/- means 5 times Return in 3 to 6 Months time.
Because Virinchi Going to Restructuring of the Company; value is very high. Just buy and hold till 35/- to 69/- levels soon.
Company having good Fundamentals and good Financial background and Good Management and Company having good International prestigious Clients from UK, USA, Europe, Germany, France, Italy and Holland.
In this market Safe investment for this Stock at 11/- With target of 35/-. Within 1 to 3 months time.
Equity : 14.9 Cr
Face Value : 10/-
Book Value: 53/-
Promoters Holding : 28% ;
Financial Institutions and Banks 8%;
Body Corporate : 8.59%;
Public Only 56%
EPS : 3.13/- for 2010-11 and 2011-12 Expecting 4/- above.
Every Year Dividend Paying company.
Dividend History: 2011 --- 5%; 2010 --- 5%; 2009 --- 5%; 2008 --- 5%; 2007 --- 5%; 2006 --- 5%; 2005 --- 5%
VIRINCHI TECHNOLOGIES LTD going to Restructuring of the Company.
VIRINCHI TECHNOLOGIES LTD Having Good Infrastructure and Land Bank and Valuable Assets.
VIRINCHI TECHNOLOGIES LTD Expanding plans is very Aggressive.
VIRINCHI TECHNOLOGIES LTD Stock Will go 22/- to 35/- and 69/- range in Short term and Medium Term., Like SE Investment (Call Given at 175/- Now including Bonus and Stock split 1250/-) and Bihar Tubes Ltd (Call Given at 57/- Now 165/-).
For 2010-11 Year Net Income of 64 Cr and Net Profit was 4.6 Cr EPS 3.13/-
For 2011-12 Full Year Estimating Net Income of 87 Cr and Net Profit of 6 Cr As per this EPS was 4/- above. But in coming Quarters Expanding Business Income will add so Expecting EPS for 2012-13 is 5/- above. Stock Trading at 11/- PE just 3 Industry PE is 18. As per this Stock will zoom to 50/- levels in 6 Months to 1 Year Time.
Virinchi Technologies Limited is an IT Products and Services company focusing on financial services Industry servicing customers in North America, Europe & Middle East. Its world leaders as software service provider to Retail Micro Lending and deferred presentment Industry.
Virinchi is a CMMi Level 3 company and ISO 9001:2000 certified for its Production, Delivery and Quality process
Virinchi Technologies Limited is an Information Technology Products & Services company offering world-class services to its global clients including some Fortune companies operating in varied industry verticals.
Virinchi Technologies Ltd has informed BSE that the Company has entered into a long term agreement with its strategic partner in the US to offer Oracale ERP Maintenance services to its clients who are primarily into research and development, manufacturing, distribution and retail domains. Total revenues from the deal is expected to be close to half a million US dollars which predominantly includes remote maintenance of the customer's Oracale -Business Suite implementations and the related onsite services that would generate additional revenues. This new line of service completely leverages the Company's past experience of developing, integrating and managing Enterprise class applications for various large customers based out of the Middle East, Europe and the US. This new service would be delivered from the new office space developed.
The Board has appointed M/s. Tata Capital Ltd as Financial Advisors for restructuring of the Company through formation of focused subsidiaries in-order to un-lock the value of its software intellectual property across different industry domains.
The Board recommended incorporation of the 100% subsidiary "Qfund Technologies Pvt Ltd", that shall focus on providing transaction business services in Deferred Presentment Industry in the US and UK markets, where its retail micro lending product "Qfund" is the first mover and the market leader. The Board accepts the resignation of Anil Kumar Pinapala as its Executive Director and nominates him to be the CEO and Executive Director of Qfund Technologies Pvt Ltd upon incorporation, to lead the Company.
The Board also recommended incorporation of the 100% subsidiary "Virinchi Media and Entertainment Pvt. Ltd" to launch internet portals to serve the growing demands of the Indian Entertainment Industry to enable Creation, Buying, Selling and Delivery of high definition entertainment through internet to customers across globe.
The Board also recommended incorporation of the 100% subsidiary "Virinchi Learning Pvt Ltd" to promote technology based, for profit, quality education services to the different student categories in India, both by creation of new content & infrastructure and also by partnering with existing content providers by leveraging the strength of Information technology.
The Board has allotted 30,00,000 convertible Warrants to the Promoters at Rs. 20/- per warrant as per the Guidelines for Preferential Issues.
This company has a great future. Even if we give a conservative P/E of 10 (Industry Avarage PE was 20), It should be trading at Rs. 39+ based on FY 20011-12 earnings. So there is a long way to go. Investors with faith in VIRINCHI management and having patience will definitely earn a lot based on Value of Products and Assets and Profits.
Positive Points for this stock for Up moving:
1) VIRINCHI TECHNOLOGIES LTD trading at 11/- trading in BSE Company Stocks not participated for recent Rally; Now It's good bet to Buy because of Company will declare good IV Quarter Results with EPS 4/-. Good Worthy to Buy at 11/- with Target of 22/- & 35/- Short time.
2) Mumbai Bulls and Operators are accumulating at current price. Because Stock is available at very cheap price at 11/-;
3) Book Value is 52/-. Good Profit making company; Expecting EPS for 2011-12 is 4/-
4) Good Dividend History every year 5% given to investors from 2005 onwards.
5) Company Restructuring very soon, company having Three own subsidiary companies in the areas of Media, Learning and Tech.
6) FII's are interesting to invest Because Company having good Value and Promoters Holding 29% and planning to increase stake.
7) Company Planning to buy US company; this results will effect next Quarter net profit and EPS.
8) 10/- Face Value stock Available at 11/-/- with EPS 4/- Book Value 52/- and Good Fundamental Company. No risk at Present rate at 11/- with target of 35/-.
9) Promoters allotted warrants at 20/- per share to promoters group, So Risk Free at Current Market Price, Its very cheap price trading at 11/- Compare to companies Reserves, Assets and Value and Equity and Profits and Future Plans.
Happy Invest ……….. Good Fundamentals and will give good returns from 100% to 500% returns with short and medium terms and Long terms.
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