TAKE SOLUTIONS

The company supplies software products to

SCM--- supply chain management

LS  -----life sciences

The revenues are derived from license/usage of the products supplied.   It has over the years developed various products for both of the above businesses.  It had 16 products for SCM and 6 products for LS range as on March 09.

The company has developed a bit of a niche in the above two segments and both of the segments have plenty of potential to grow in the years to come.

FINANCIALS:

EQUITY CAPITAL---- 12 CRORES EACH SHARE OF RE 1

DEBT   13 CRORES

MARKET CAP   312 CRORES AT CMP OF AROUND 26

THE COMPANY HAD AROUND 110 CRORES OF CASH AND EQUIVALENTS ON HAND AS AT MARCH09.

PROMOTER HOLDING AROUND 58%  NO PLEDGING

ONE NEEDS TO LOOK AT CONSOLIDATED NUMBERS IN THE CASE OF THIS COMPANY AS BULK OF THE REVENUES COME FROM THE US.

THE GLOBAL MELTDOWN HAD AN EFFECT ON THE REVENUES AND PROFITABILITY OF THE COMPANY AND THE FIRST HALF ENDED SEP09 WAS DISMAL BUT THE COMPANY SEEMS TO BE MAKING A COMEBACK SINCE DEC 09 QTR, WHERE REVENUES WERE 91 CRORES AND NET PROFITS WAS 8.2 CRORES.   FOR 9M  FY10, EPS WAS AROUND 1.68 PER SHARE.

THE COMPANY HAD AN ORDER BOOK OF AROUND 47 MILLION US DOLLARS AS ON DEC 09.(211 CRORES)

POSITIVES:

COMPANY HAS A NICHE IN SUPPLY CHAIN AND LIFE SCIENCES VERTICALS

GOOD CLEAN BALANCE SHEET

AVAILABLE AT VALUATIONS OF AROUND 10-11 PE BASED ON FY10 EXPECTED EPS OF AROUND  2.2-2.4

COMPANY HAS 110 CRORES OF CASH AND EQUIVALENTS AS ON MARCH09

REVENUE GROWTH OF 87% CAGR BETWEEN 05-09 AND NET PROFIT GROWTH OF 108% IN SAME PERIOD.

NEGATIVES:

BULK OF REVENUES COMING FROM US MARKETS AND HENCE RISK OF CONCENTRATION

VULNERABLE TO CURRENCY FLUCTUATION AS MOST OF REVENUES ARE FROM EXPORTS

TECHNICALS:

THE STOCK MADE A HIGH OF 135 IN DEC07 POST LISTING AND FELL DOWN TO POST A LOW OF 14.40 IN MARCH09. SINCE THEN IT WENT UP TO 44.90 AND THEN FELL DOWN TO POST A LOW OF 22.50 ON 29 MARCH 2010. CMP AROUND 26.

INVESTMENT THEME IS BASED ON TURNAROUND PROSPECTS OF THE COMPANY LOOKING AT THE DEC09 QTR RESULTS AND ORDER BOOK WHICH GIVES VISIBILITY FOR NEXT 2-3 QUARTERS.

IF THE COMPANY CAN GET BACK TO GROWTH TRACK DEMONSTRATED FROM FY05 TO FY09  (EVEN HALF OF ITS EARLIER GROWTH RATE IS ENOUGH TO WARRANT A RERATING), THEN THERE CAN BE SIGNIFICANT UPSIDES FROM CURRENT LEVELS.