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Message Icon Topic: Take Solutions A Value cum Growth Story Post Reply Post New Topic
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subu76
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Quote subu76 Replybullet Topic: Take Solutions A Value cum Growth Story
    Posted: 05/Apr/2010 at 8:27pm
Take solution's market cap is roughly 300 cr and it holds about 110 cr in cash or cash equivalent. (source MD's letter in the 2009 annual report)
 
It's profit in 2009 was 54 cr so Enterprise value is roughly 3.5 times 2009 profits which sort of makes it look cheap. The company generated FCF in both 2008 and 2009.
 
Take is a Chennai based product oriented company.
 
Take has 2 verticals
1. SCM Link
2. Pharma  Link
 
The SCM business is sort of suffering at this point due to the economic downturn.
The Pharma business is mostly about electronic filing of applications which is mandated in the USA from 2010 onwards.
 
The customer base of both Pharma and SCM business looks really compelling.
 
Reading through this company's AR and other articles it seems this company has what it takes to grow much bigger. The Management seems to understand the domain and the employee predigree seems quite good (atleast as I observed in linkedin)
 
The company is following the strategy of building strategic partnerships in it's areas as the means to acheiving more traction in the market place. Small niche product players keep on getting stronger with each customer interaction and feature addition in the product. Keeping this in mind the hope is that focus will lead to nice things happening to this company.
 
At 300 cr i think the growth potential of the company is being complety understated.


Edited by subu76 - 05/Apr/2010 at 8:31pm
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eulav
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Quote eulav Replybullet Posted: 15/Apr/2010 at 1:17pm
Subbu--looks like a good find, and seems undervalued at quick study. Will try to dig deeper and report back on what I hear from Industry feedback.

Positives:
Sound Management and Board -Shriram group has good corporate standards
Top management and founders have been around for along time so understand the domain
Tied up with Oracle/SAP for Supply Chain solutions -typically enabling mobile applications/RFID which could be growth areas
Decent Balance sheet and financials, 2009 AR doesnt seem to show any negatives /red flags
Growth seems to be coming back after a slump

Worries
CEO has no ESOP/Stock holding ?
Tried to merge with Four Soft--then called it off after 6 months--management may be tempted to make acquisitions (which maybe EPS dilutive)
No geographical diversification--mostly US centric--tried Europe by the FourSoft merger, but failing that have not penetrated the EU market

Background reading(yet to read)the promises made and kept (or reasons not kept) are usually instructiuve
Take Solutions DHRP
www.sebi.gov.in/dp/takedraft.pdf

Old Report by SBI Caps
http://www.takesolutions.com/Reports_Filings/2007/Annual/SBICAPSecurities-TAKE-Solutions-InitiatingCoverage.pdf
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subu76
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Quote subu76 Replybullet Posted: 15/Apr/2010 at 1:27pm
Eulav Sir...please go through this thread...which is more current on Take Solutions.
 
 
Unfortunately i ended up forking the thread. I'll post your message there as well.
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