Archive for March, 2008

Kaashyap Technologies : Risk -Reward ratio and SWOT analysis favours a BUY

16th March 2008

Kaashtap Technologies Limited.(KTL) was incorporated in the year 1997. The Company was earlier named as Kaashyap Radiant Systems Ltd and came into public by its Initial Public offer in the year 1999.The company has rich experience in implementing SAP and has successfully implemented SAP projects in India and Middle East.

KTL is a Complete Service provider of IT Consulting Services, which includes designing and constructing systems that are powerful enough to carry forward the business through the new millennium.KTL has collaborated with several technology partners to provide a wide range of solutions for the Large and SME segments.In short KTL stands for:

Enterprising Services
Software Development
SAP Services
Product Engg
IT Training and Staffing
Financial Services
Telecom
BPO/ Supply Chain Management/ Service Oriented Architecture
Content Mgt. Solutions

Financials of the company are showing a definite improvement QoQ

Scrip Code : 532283 Company Name : Kaashyap Technologies Ltd

Type	UnAudited	UnAudited	UnAudited	UnAudited	UnAudited	UnAudited
Period Ending	31 Dec 07	30 Sep 07	30 Jun 07	31 Mar 07	31 Dec 06	31 Mar 07
No Of Months	3	3	3	3	3	12
Description	Value(Rs. million)
Net Sales / Interest Earned / Operating Income	185.59	112.02	102.40	12.50	8.70	21.20
Other Income	-	0.10	-	-	-	-
Total Income	185.59	112.12	102.40	12.50	8.70	21.20
Expenditure	-125.78	-100.21	-92.38	-3.96	-3.41	-12.70
Operating Profit	59.81	11.91	10.02	8.55	5.29	8.50
Interest	-4.99	-0.34	-	-	-	-
Profit Before Depreciation and Tax	54.82	11.57	10.02	8.55	5.29	8.50
Depreciation	-0.92	-0.46	-0.17	-0.17	-0.17	-0.62
Profit before Tax	53.90	11.11	9.84	8.38	5.12	7.88
Tax	-9.35	-1.21	-0.17	-0.02	-0.02	-0.06
Net Profit	44.54	9.90	9.68	8.36	5.11	7.81
Equity Capital	359.10	196.57	155.32	56.32	56.32	56.32
Preference Capital	-	-	40.56	40.56	40.56	40.56
Reserves	746.65	213.90	132.78	-	-	-
Basic And Diluted EPS after Extraordinary item	-	-	0.10	0.15	0.09	0.14
Basic EPS after Extraordinary items	0.23	0.18	-	-	-	-
Diluted EPS after Extraordinary items	0.12	0.05	-	-	-	-
Nos. of Shares - Public	356,621,892.00	194,096,892.00	152,814,592.00	53,833,016.00	52,820,635.00	53,833,016.00
Percent of Shares-Public	99.31	98.74	98.39	95.58	93.79	95.58
Operating Profit Margin	32.23	10.63	9.79	68.40	60.80	40.09
Net Profit Margin	24.00	8.84	9.45	66.88	58.74	36.84
Cash EPS	-	-	-	-	-	-
	Notes	Notes	Notes	Notes	Notes	Notes
	Detailed	Detailed

KTL has an Equity of Rs. 36 crores with 36 crore shares of Re 1 FV. At CMP of around Rs. 2.0 market capitalisation is less than Rs. 75 crores and with an expected EPS for FY09 of close to Re.0.5,the share is presently available at P/E of less than 4. Company is likely to report better results for FY08 and may surprise the investors with a BONUS,Dividend and Rights at par.Company is Debt FREE and its share has potential to touch double digit in 6 months time.

BUY is recommendd at CMP of Rs. 2. with atleast 6 months HOLD.

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information

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