ICSA - Next Big thing
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=1134
Printed Date: 26/Jun/2024 at 10:22pm
Topic: ICSA - Next Big thing
Posted By: Rinku
Subject: ICSA - Next Big thing
Date Posted: 14/Aug/2007 at 4:45am
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Replies:
Posted By: kaizenbudhi
Date Posted: 14/Aug/2007 at 5:21am
| The company has been growing at the rate of >40% sales & >50% net profit for last 10 quarters (year on year) consistently. How many companies do we think we have of such kind in India? That too with unique patented products in portfolio. Equity dilution is also negligible. It has been a multi bagger and shall continue to be a multibagger goign forward. |
Posted By: us121
Date Posted: 14/Aug/2007 at 9:29am
These companies are in very different space together. it is like comparing computer hardware and software companies. Nevertheless, my effort is not to underestimate potential of ICSA. ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
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Posted By: deepinsight
Date Posted: 14/Aug/2007 at 10:56am
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concerns:
1. major dependency on one large order internationally (sudan ! ) - though I read somewhere that they are working on bids in Middle East
2. dependency on public sector electricity boards as customers (how well will they pay, winning new contracts, etc. etc.) - though they seem to have done a great job so far and the size of the opportunity is big.
3. management - though proven through numbers that they are capable of executing - hardly any information on integrity and being shareholder friendly. they have been giving themselves warrants diluting shareholders. ------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: tigershark
Date Posted: 15/Aug/2007 at 12:29pm
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how strong are entry barriers,can imports hurt ------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: deepinsight
Date Posted: 15/Aug/2007 at 3:29pm
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The entry barriers would be somewhat high (though its always possible for someone to copy and develop) as the company's products been developed over many years - tested and implemented in the field.
Plus their new products for new sectors oil and gas, water etc. would enjoy a few years of lead.
Imports as far as I can see is not an issue (as their products are software, proprietary hardware and related services). ------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: Rinku
Date Posted: 15/Aug/2007 at 5:02pm
| How many people from TED holding this share? |
Posted By: go4lalit
Date Posted: 15/Aug/2007 at 9:47pm
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This company is very interesting given there are heavy T&D losses in India and govt will invest in minimizing these losses. With the current price of 1715/- , this stock is already up 106 times in the last 3 years. I am wondering why this stock was never in the radar of big MFs. Going forward, it will depend on how the company can secure more orders. However I still feel that the risk reward is very favarouble as the stock is still not re-rated in terms of PE. The sheer 106 times return was due to EPS growth. Disclaimer: I have already boarded this train at 1100 levels
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Posted By: India_Bull
Date Posted: 15/Aug/2007 at 10:00pm
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I had this stock in my mind since it was at 600 levels but simply didnot study it because one of the (in)famous TAU Mr. Bathew was recommending it every where and at every possible opportunity, well, I missed 3 bagger then .
Moral of the story is- Look at the stock and not who is recommending it !!! ------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: kumarrvq
Date Posted: 15/Aug/2007 at 10:44pm
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India Bulls, I too was able to catch it late but around 1000 bucks......while buying I felt I missed 3 baggers but in first look I was impressed by what they are doing...there were no companies in India doing so.....just like subex they are monopoly in their own area...but I don;t know how big is their market....how much they can expend etc.....planning to accumulate more in dips.
------------- Thanks & Regards, Harry |
Posted By: Rinku
Date Posted: 15/Aug/2007 at 11:44pm
| i am also very excited about this company.Waiting for some correction though. |
Posted By: kaizenbudhi
Date Posted: 15/Aug/2007 at 12:17pm
| Have been in this since 2005. Detected at 75 and then exited between 150 -180. Then was not able to justify buying at 400 and then 800 & so on. Finally again entered between 800-1100 and sitting tight on it.:)) |
Posted By: deepinsight
Date Posted: 15/Aug/2007 at 1:17am
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This is from Outlook Money around April 2007 time frame
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ICSA (India) (Current price: Rs 1,037.70, EPS: Rs 76.39). With a trailing annual turnover of Rs 260 crore, ICSA is a relatively small operation. However, it's growing at a blistering pace. ICSA's offerings are in technology solutions for the power sector, primarily to identify transmission and distribution (T&D) losses and monitor power consumption from a remote location. The monitoring from the distribution points into central control rooms uses telephone systems—both wired and wireless. With nationwide T&D losses among the world's highest, and on-going reforms in the sector, it seems to have its work cut out. Its client list includes Reliance Energy, Maharashtra State Electricity Distribution Company and CESCO. Over the last six quarters, ICSA has posted triple-digit growth, both in terms of revenue and net profit. In Q3 FY07, its sales grew 289 per cent, while net profit growth lagged only marginally, at 268 per cent. EPS for the trailing four quarters clocked in at Rs 76.39, which means the current market price discounts earnings by some 14 times. If one were to look at ICSA from the perspective of price earning to growth (PEG) ratio, it has to be one of the cheapest available. Clearly, it is impossible to continually log this pace of growth, but the upside would appear substantial.
------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: deepinsight
Date Posted: 15/Aug/2007 at 1:22am
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Mangal Keshav Brokerage firm came out with a report on this company 25 july 2007: (do not have the full report) here is what was available:
We had initiated coverage on ICSA India Ltd. on May 15, 2006 at Rs. 735 with a price target of Rs. 1160. The stock has reached our price target. We are upgrading our price target to Rs. 2160 backed by better business conditions and improving fundamentals.
Investment Argument Solution to reduce AT&C losses – Automation of the distribution network Transmission and Distribution losses in India are as high as 35% to 40%. The Government of India has made Energy Audit mandatory for all SEB's and Distribution companies which will help them to reduce the Aggregate, Technical & Commercial (AT&C) losses to an acceptable level of 15%. Automation of the distribution network is the solution to reduce these losses and thereby improve the financial viability of the distribution companies. Adherence to these regulatory guidelines will generate substantial demand for the products that monitor and identify the AT&C losses. ICSA's proprietary technology provides solution for automation of distribution network We believe that ICSA will be the key beneficiary as it has developed embedded products that help in automation of the distribution network and thereby help in identifying the distribution losses. New Initiatives ICSA has also developed embedded solutions for other sectors like oil & gas, water reading and street light control. We believe that these products, which are deployed at various client sites on a pilot basis, will soon reach commercial stage. We believe that 13% of the revenue will come from these products in FY09E. Strong order book position ICSA has an order book of Rs.5.8 bn. Products and Projects form 48% and 52% of the order book composition respectively. Valuations We expect company's revenue to grow at a CAGR of 110% from Rs. 811 mn to Rs 7.59 bn, earnings at 115% from 150.9 mn to 1.5 bn and EPS at 79% from Rs. 25 to Rs. 144 over (FY06- 09). At current price of Rs. 1315 the stock is available at 12.5x FY08E and 9x FY09E. We arrive at a price target of Rs. 2160 by giving 15x to its FY09E EPS. This provides an upside of 64% from the current levels. ------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: Rinku
Date Posted: 15/Aug/2007 at 4:47am
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Thanks deepinsight for all the info.Do you have any holdings here and if yes what % of your portfolio. |
Posted By: Rinku
Date Posted: 15/Aug/2007 at 4:48am
| Any TEDs who are holding ICSA can pls let me know how this behaves during correction? |
Posted By: deepinsight
Date Posted: 15/Aug/2007 at 7:42am
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Busy gathering information on the company. Yet to build conviction to build a meaningful position.
Your position should be a function of your own conviction & has little meaning what other TED's are doing. ------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: Mr. V
Date Posted: 15/Aug/2007 at 8:20am
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I had researched ICSA some time back and my biggest concern was, it's growth for the last few quarters was entirely due to ONE single order of 630 cr in Sudan.
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Posted By: deepinsight
Date Posted: 15/Aug/2007 at 8:36am
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I recognized the same risk- and related to the same if the growth (in new customer acquisitions, revenue, earnings and margins) sustainable?
Reminds me of what WB had to say on the subject 'The investor of today does not profit from yesterday's growth.'
In this case it may well be that the company is poised to benefit from the demand but we need to collect more data on the management and business model to build strong conviction. ------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: Rinku
Date Posted: 16/Aug/2007 at 1:26pm
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DeepInsight I agree with you.But i am very new for equities and hence learning.Guys keep sharing news on this post. Any one who got chances to speak to management?
Schuttle Butt method from Phil Fisher. |
Posted By: deveshkayal
Date Posted: 16/Aug/2007 at 10:53pm
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Reliance Energy arm Sonata Investments has stake in ICSA since May 2005. ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: investor
Date Posted: 16/Aug/2007 at 10:23am
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Basantji, would be great to hear your views on this company.  ------------- 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: Rinku
Date Posted: 17/Aug/2007 at 1:10pm
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Anyone interested in ICSA has the skill and capacity to contact management? Pls let us know...There seems to be lot of interest in this company because model and growth looks very very interesting |
Posted By: basant
Date Posted: 17/Aug/2007 at 2:03pm
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Rinkuji that should not be a problem ifn you want to contact them just send them an email and see if they do not respond try calling them up later.
------------- '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: Rinku
Date Posted: 17/Aug/2007 at 5:00pm
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Thanks Basantiji.I would like to do that.Do you have any sample on what type of questions normally you ask?
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Posted By: Rinku
Date Posted: 17/Aug/2007 at 5:29pm
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Old news:
ICSA (India) bags Sudan order
hindubusinessline.com
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Posted By: Rinku
Date Posted: 17/Aug/2007 at 5:33pm
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Posted By: India_Bull
Date Posted: 17/Aug/2007 at 5:34pm
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Rinkujee,
Lagta hai is bear market main aap ICSA main bahut Bullish ho gaye ho !! ------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: Rinku
Date Posted: 17/Aug/2007 at 5:37pm
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Big Guns Involved with ICSA
CLSA Merchant Bankers 3.02 per cent
Goldman Sachs Investments 4.11 per cent
UBS
Reliance Energy Investment Ltd four lakh shares
Lloyd George Management Investment (Bermuda) Ltd under sub-account LG Asian Plus Ltd two lakh shares
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Posted By: Rinku
Date Posted: 17/Aug/2007 at 5:42pm
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India Bullji...
Abhi to sirf correction hai(10% drop)...bear market to 30-40% drop par ayega.
And Yes I am impressed with financials of the company.Only problem is valuation.
I will continue my research till valuation becomes attractive.
And at the momment I have portfolio like your old portfolio.And I want to build concentrated portfolio(inspired from TED).ICSA could be one of them.
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Posted By: basant
Date Posted: 17/Aug/2007 at 6:03pm
This could be helpful.
http://www.theequitydesk.com/forum/forum_posts.asp?TID=666 - http://www.theequitydesk.com/forum/forum_posts.asp?TID=666 ------------- '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: investor
Date Posted: 17/Aug/2007 at 6:04pm
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Rinku, Yes, but more important is at what levels they entered. If all these positions were built up by them when it was in its early 3 digit levels, then it may not mean much for us, who are looking at entering now. But definitely, it does give some validation of the company as a whole. I have also started looking into this story, trying to see if it merits investment, as of now the numbers do look good - the only concern is just as you said - VALUATIONS!! Is there any margin of safety at current levels, and whether it is a good time to enter or not! 
------------- 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: deepinsight
Date Posted: 17/Aug/2007 at 9:22pm
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Rinku and Investor: At what valuation would there "margin of safety"? at about 14 times trailing - valuations do not seem so expensive. with growth rate of more than 100% (last few quarters) PEG ratio would be .10 or .15 which would make this company CHEAP - the question for us is the growth and margins sustainable? And question 2 is this management trustworthy? If the answer to both of them is Yes - from an valuation perspective it could almost be time to back up the truck and buy
------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: Rinku
Date Posted: 24/Aug/2007 at 10:44pm
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ICSA (India) gets a face lift on splitting face ICSA (India) had jumped 6.05% to Rs 1508.50 at 14:28 IST after it scheduled its board would meet on 30 August 2007 to consider a stock-split.
The BSE Sensex, meanwhile, was up 218.61 points, or 1.53%, to 14,380.33. On BSE, 30,818 shares of the scrip were traded. The stock had an average daily volume of 23,332 shares on BSE in the past one quarter. ICSA (India) had touched a high of Rs 1524 and a low of Rs 1440 so far during the day. It had hit a 52-week high of Rs 1919 on 9 August 2007 and a 52-week low of Rs 665 on 7 September 2006. The scrip of the software developer had outperformed the market in the one month to 23 August 2007, adding 7.67% as against the Sensex's 9.78% drop. It had also outperformed the market in the past three months, gaining 26.20% against the Sensex's 1.22% fall. The company has an equity capital of Rs 7.96 crore. Face value per share is Rs 10. At the current price of Rs 1508.50, the scrip trades at a PE multiple of 10.75, based on Q1 June 2007 annualised EPS of Rs 140.29. ICSA (India) net profit rose 95.4% to Rs 23.92 crore on a 107% rise in sales to Rs 122.63 crore in Q1 June 2007 over Q1 June 2006. The company focuses on the power sector and its activities include devloping software to monitor and control the transmission & distribution (T&D) losses. It has already implemented a number of projects to monitor and control power theft as well as systems for data acquisition. |
Posted By: ganeshbhandary
Date Posted: 28/Aug/2007 at 10:52pm
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This is a gem of a stock. my holding is 20% of my portfolio i bought at average price of 750.if same growth rate persists going to be a multibagger of a lifetime.expected stock split announcement soon.
As a electrical and automation engineer i understand the importance of the segment in which it belongs.i already discussed about this long back in this forum.my stock pick based on deep study of its financials and demand for this segment
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Posted By: xbox
Date Posted: 28/Aug/2007 at 5:43am
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expected stock split announcement soon.
--------
Thanks Ganesh jee. ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: deepinsight
Date Posted: 28/Aug/2007 at 8:42am
Overall I would agree with your enthusiasm, lekeen,
a) Do you see any risk in its dependency of this one large contract in Sudan? I am worried if the company will be able to sustain its numbers.
b) Any views on what you know of the management? ------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: kulman
Date Posted: 29/Aug/2007 at 2:36pm
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Is KLG Systel in similar areas as ICSA? Anyone tracking the same could post views/comparison. ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: tyler_durden
Date Posted: 29/Aug/2007 at 2:38pm
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klg systel is a great concept...i was holding it for quite sometime....they re into major tie ups with state governements for energy saving projects....and stock had a great run up in past few months....it can be big but the way it had fallen in 2000 from 600 levels to 9 rs ...that made me worried...i made some money and got out....
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KLG Systel Ltd on August 29, 2007 has announced that it has been awarded orders worth over Rs 67 crore from the Governments of Rajasthan and Haryana. The projects covered in this order include that of Revenue Management for power utilities and boosting the power infrastructure in the states of Haryana and Rajasthan. The Company shall, in the course of these project deployments, use its innovative SG61™ technology to reconcile and manage the power distribution in utilities. The Company has extensive experience and expertise in the Utilities business and will use state of art Project Management tools for timely execution of these projects. These projects are expected to be completed by March 2008. The Company is an IBM premiere Independent Software Vendor (ISV) in India and is also now certified by IBM for Service Oriented Architecture (SOA). SOA enables organization to build a scalable architecture capable of talking to legacy systems. The Company has been recently announced as an Independent Software Vendor by SAP and KLG’ S Vidushi (Utility Business Automation Software) has obtained Net Weaver Certification from SAP. The Company was also very recently awarded a SAP-IS Utilities order from Jamshedpur Utilities. The Company builds its strength from focus on deep domain knowledge from the grass root level and will be looking at leveraging the same for these projects. The Company has been working in the power sector for over 14 years, providing services for 5 million consumers across 8 utilities in India. Date: 2007-08-29 ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: kaizenbudhi
Date Posted: 30/Aug/2007 at 7:37am
| UBS again bought 40000 shares on 28th august. |
Posted By: PKB2000
Date Posted: 23/Sep/2007 at 5:28pm
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When the common people are not ready to take software stocks at that time ICSA is buying Softpro Sys and as expected it is in bulk deal on 20Th September Qty 60000. Interesting indeed
------------- I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso |
Posted By: deepinsight
Date Posted: 23/Sep/2007 at 5:46pm
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Found it quite curious what would be the logic of such a move. ------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: PKB2000
Date Posted: 23/Sep/2007 at 6:05pm
Probably to strengthen Energy Accounting system ------------- I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso |
Posted By: kaizenbudhi
Date Posted: 18/Oct/2007 at 3:33am
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Indiabulls pledged 9.77% in ICSA.
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Posted By: deepinsight
Date Posted: 18/Oct/2007 at 5:28am
what does that mean? are you talking about the brokerage house? ------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: kaizenbudhi
Date Posted: 18/Oct/2007 at 8:57am
| Indiabulls financial services is going to buy 9.77% stake in ICSA as I understand from bseindia announcements on ICSA. |
Posted By: deveshkayal
Date Posted: 18/Oct/2007 at 11:02am
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So expect fireworks like BAG Films. BAG is on a roll ever since IB invested in the company ! ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: stockaddict
Date Posted: 19/Oct/2007 at 4:22pm
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Tracking ICSA since it was 1200 , have taken a small exposure and hoping to add more on declines. any news on the Q2 results? |
Posted By: deepinsight
Date Posted: 19/Oct/2007 at 6:19pm
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Can it be that the founders/company had pledged the shares for money. and the pledge is being exercised? needs more clarity. ------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: deepinsight
Date Posted: 19/Oct/2007 at 6:22pm
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Annual report from its website:
http://203.199.177.189/InvestorGuide/jsp/ICSA/ICSA2006-07.pdf - http://203.199.177.189/InvestorGuide/jsp/ICSA/ICSA2006-07.pdf
------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: deepinsight
Date Posted: 19/Oct/2007 at 4:11am
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the report from Bajaj Capital:
http://www.bajajcapital.com/investments/mutual-funds/stock%20idea.pdf - http://www.bajajcapital.com/investments/mutual-funds/stock%20idea.pdf
ICSA India CMP: Rs 1,661.60 Target price: Rs 2,575 Bajaj Capital has recommended a 'buy' on ICSA India as it feels that the company will be a key beneficiary of the power sector reforms. The company enjoys monopoly in developing embedded products that help in automation of the distribution network, thereby identifying and reducing power distribution losses. "The products developed by the company also find application in other sectors including oil & gas, water, irrigation & mining, which have thrown open big opportunities for the company," adds the report. The company has achieved a 5-year CAGR of 143.8% in net sales while the 4-year CAGR of net profit is pegged at 404.90%. "If everything goes well, the price is likely to appreciate to Rs 2,575, within 12-18 months," adds the report. ------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: kaizenbudhi
Date Posted: 26/Oct/2007 at 6:45pm
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ICSA (India) on standalone basis registered a stupendous 92.82% growth in net profit to Rs 288.80 million for the quarter ended September 2007 as compared with Rs 149.77 million for the corresponding quarter, last year. Net sales for the quarter rose 95% to Rs 1,462.31 million as compared with Rs 749.89 million for the same quarter, a year ago |
Posted By: kulman
Date Posted: 26/Oct/2007 at 7:14pm
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Truly great performance by ICSA.
With the ex-split price of Rs.340+ could someone post the PE on Current year & Forward basis? ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: deepinsight
Date Posted: 26/Oct/2007 at 8:28pm
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the eps is going to be challange to calculate on fully diluted basis as there are some warrants and FCCB which need to be reflected.
Top line and bottom line are great - fully diluted results a bit unclear. ------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: stockaddict
Date Posted: 31/Oct/2007 at 5:11pm
Wow! I was lucky to buy some quantity @1480 in to the dip on the last day before split. It has gone to as high as 400+ post split and excellent Q2 results. If the good perfromance continues it is due for rerating in coming years.
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Posted By: deepinsight
Date Posted: 20/Nov/2007 at 1:57pm
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ICSA (India) Ltd CMP Rs312, BUY Target price Rs451, Upside 44.7%
ICSA, a proxy on the Indian power growth story, is expected to witness revenues and profits CAGR of 75.6% and 81.5% over FY07-09 respecti vely. This growth will be a fallout of the huge opportunity arising out of the APDRP scheme and infrastructure spend expected over the next couple of years. At the current price, the stock trades at 12.5x and 8.3x its FY08E and FY09E EPS of Rs25 and Rs37.6 respectively. We recommend BUY with a one-year price target of Rs451, an upside of 44.7%.
Click below for the Company Report on ICSA (India) L td http://www.indiainfoline.com/adserver/InverstorReport_ICSA201107.asp - http://www.indiainfoline.com/adserver/InverstorReport_ICSA201107.asp ------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: deepinsight
Date Posted: 20/Nov/2007 at 1:59pm
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Kulmanjee:
Indiinfoline has answered your question on eps for:
07 of Rs. 17.3
08 of Rs. 25
09 of Rs. 37.6 ------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: kulman
Date Posted: 20/Nov/2007 at 2:27pm
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Thanks.
ICSA has been now added to my watchlist. ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: hkumar
Date Posted: 20/Nov/2007 at 3:45pm
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A very compelling story...on the risk side, promoters hold only 20% in the company.
In addition to Sudan, who are the other major customers to the company? Can somebody give an idea.
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Posted By: deepinsight
Date Posted: 20/Nov/2007 at 7:47pm
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Try looking at their website:
http://www.icsa-india.com/links/clients.html - http://www.icsa-india.com/links/clients.html
http://www.icsa-india.com/links/about.html - http://www.icsa-india.com/links/about.html ------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: mknaik99
Date Posted: 20/Nov/2007 at 9:10pm
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One concern among these positive factors is the negative cash flow from operations. SEB' are notorious
for delayed/non payments and will this cause a cash crunch which may affect operations. All said this is not to detract from the value of this stock of which I have a substantial holding but to brainstorm on this particular aspect. |
Posted By: basant
Date Posted: 20/Nov/2007 at 10:39pm
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Negative cash flow from operations: I am quietly sitting on a 85 bagger in Pantaloon (rights/split adjusted) with negative operating cash flow since the time I bought it in early 2003! ------------- '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: italics
Date Posted: 21/Nov/2007 at 2:28pm
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Hi basantji i had a post here on cash flow. Has it been deleted or moved somewhere else?
Do let me know.
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Posted By: basant
Date Posted: 21/Nov/2007 at 2:48pm
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http://www.theequitydesk.com/forum/forum_posts.asp?TID=1383 - Free Cash flow. Is this the only thing? ------------- '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: italics
Date Posted: 21/Nov/2007 at 3:05pm
| thanks. It's good to finally see a thread on cash flows. Hope we get some educative posts on it. |
Posted By: mknaik99
Date Posted: 23/Nov/2007 at 9:29pm
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Dear Basantji,
As per my reckoning Pantaloon' negative cash flow position is due to heavy investments in real estate & other capex. My apprehension on ICSA is that is the -ve cash flow due to inordinate delays in payments by SEB' or bad/unrecoverable debts not being acknowledged by Management? |
Posted By: basant
Date Posted: 23/Nov/2007 at 9:31pm
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Yes, you are right about PRIL's negative cash flow. They have incubated a large number of new businesses and hence are short of cash about ICSA I have no idea really.
------------- '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: mknaik99
Date Posted: 23/Nov/2007 at 9:48pm
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Basantji,
Will you consider taking time out to study this company. It looks like a potential multibagger considering the promising line in which it operates (power, oil & gas & water management). On the face of it looks like a Phil Fisher/Peter Lynch candidate, except for the cash flow part. High growth rates, good ROE, marquee investors like Rel Energy, Goldman etc have substantial stakes, Oil India has tied up with it to install corrosion & leakage monitoring devices on their pipelines (as per OIL website), product range seems good with patents in place for a large number of products and new products being added at a fast rate. Finally as the saying goes 'during the gold rush the people who made money were the pickaxe & shovel makers' |
Posted By: basant
Date Posted: 23/Nov/2007 at 9:58pm
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I like analysing companies as business models first and financials later and unfortunately I have no idea on this. Still I would try & see. ------------- '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: ganeshbhandary
Date Posted: 25/Nov/2007 at 7:54am
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Dear basantji,
i've got significant holding on this one .i'm holding these shares long back even before thread on this is featured on TED.I've not gone by any recommendation and research reports.i've found this interesting, studied this company,its financial statement ,its growth rate and unique segment in which it operates. aready a big multibagger ,i feel still lots os steam is left in this one.apart from negative cash flow , one more negative from the company is failing to add significant customer base apart from state electricity boards.If you can analyse this for us it will give us confidence.
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Posted By: basant
Date Posted: 25/Nov/2007 at 8:08am
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Thank you for your words but as I said before it is difficult for me to forecast on businesses that I have little idea upon. ALso remember that negative cash flow does not matter all companies that grow at more then their RoE wil hjave negative cash flow because they need excess funding every time.
Negative cash flow is also associated with companies that have ahigh working capital investment.
------------- '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: shivkumar
Date Posted: 28/Nov/2007 at 6:18pm
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post deleted |
Posted By: MPD05
Date Posted: 28/Nov/2007 at 6:44pm
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Shivji, Could you please tell me which report is this so that I can decide whether I have already seen it or not? Is this the 11/20 report from India Infoline? Thanks. MPD05 |
Posted By: shivkumar
Date Posted: 28/Nov/2007 at 10:39pm
yea |
Posted By: milinthakkar
Date Posted: 01/Dec/2007 at 5:14pm
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Shivji,
Please mail the report - mailto:[email protected] - [email protected]
Thanks  ------------- Milin Thakkar |
Posted By: italics
Date Posted: 01/Dec/2007 at 11:01am
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Shiv could you mail it to me as well. Will pm you my mail id.
Thanks
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Posted By: kaizenbudhi
Date Posted: 06/Dec/2007 at 7:34am
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Deloitte rankings 2007 Asia pacific - ICSA gets 26 rank in Asia. whereas it is 3rd fastest in India. |
Posted By: kulman
Date Posted: 15/Dec/2007 at 1:31pm
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------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 15/Dec/2007 at 3:36pm
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These are smart guys I remember because they were early investors in Divid, Bharti etc. ------------- '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: MPD05
Date Posted: 15/Dec/2007 at 11:23am
GIC also has a good track record of investing only in sustainable growth stories. They don't chase one-off appreciation in prices. |
Posted By: basant
Date Posted: 16/Dec/2007 at 12:31pm
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Can anyone list ou their major holdings in India. We shoukd start a new thread on that if possible. ------------- '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: stockaddict
Date Posted: 26/Dec/2007 at 8:10pm
| ICSA suddenly jumped to 490 before closing at 468, what could be the reason for sudden spurt? |
Posted By: gyansr
Date Posted: 27/Dec/2007 at 5:22pm
| Today it jumped again by 20%... Something cooking? |
Posted By: stockaddict
Date Posted: 22/Mar/2008 at 1:36pm
Posted By: stockaddict
Date Posted: 22/Mar/2008 at 1:49pm
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I request someone more conversant with figures and ratio analysis to analyse the ICSA figures posted by me.
Thanks in advance.
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Posted By: grim
Date Posted: 10/Apr/2008 at 7:49pm
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ICSA looks v. promising, some expert anlysis required by senior boarders . Some news item on ICSA. ICSA plans US, European buys :: http://www.business-standard.com/common/news_article.php?leftnm=10&bKeyFlag=BO&autono=318592 |
Posted By: shivkumar
Date Posted: 10/Apr/2008 at 10:51pm
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the government of singapore just took a five per cent stake in the company. what i find interesting is that the promoter stake is just abt 20 per cent even while the company's profit doubles every year or so. ICSA seems to be doing every right and will be making some acquisitions internationally in the next few weeks. There were some rumours abt Anil Ambani's Reliance Energy picking up stake in the company, but nothing came of it. Won't be surprised if there are some take over bids on this a la Orchid. |
Posted By: kaushalchawla
Date Posted: 10/Apr/2008 at 11:14pm
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and I read somewhere that govt of singapore make good and long term investments.
Correct me if i am wrong.
Question: In small / medium size companines, low promotor holding - Is this a concern?? ------------- Warm Regards, Kaushal |
Posted By: deepinsight
Date Posted: 10/Apr/2008 at 2:04am
I was under te impression, Reliance through Sonata already had a stake since a few years..Think it was transferred from one entity to another few weeks back. ------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: deepinsight
Date Posted: 11/Apr/2008 at 5:30am
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http://www.moneycontrol.com/india/video/stockmarket/22/55/newsvideo/334024 - http://www.moneycontrol.com/india/video/stockmarket/22/55/newsvideo/334024
On http://www.moneycontrol.com/india/stockpricequote/computers-software/icsa-india/17/50/ICS - ICSA India : Ashish Maheshwari of India Capital is positive on ICSA India.... This company has been doing very well in the last few years. In FY06, the company was having a turnover of around Rs 81 crore. We are envisaging that in 2010, it will be around Rs 1,000 crore, and on the bottom line side, the company was having a profit of around Rs 15 crore in FY06, we are expecting it to touch at around Rs 200 crore. Recently, they have ventured into the EPC contract for oil and gas and water management. So, this is a unique company. We are advising our clients to look at those companies right now which are having business model that are recession proof and into high growth trajectory. So, if any recession is there or any slowdown, these businesses should be recession proof. This is a good example and we are expecting a price target of around Rs 600 in a year’s time. ------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: shivkumar
Date Posted: 24/Apr/2008 at 2:14pm
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Posted By: kaizenbudhi
Date Posted: 25/Apr/2008 at 5:01am
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Basantji & Senior Members, Just wanted to share the following data facts about Infy & ICSA. Would like your advise as to what all other things need to be studied along with this. Not sure how to determine the future outlook in terms of data except the order book? e.g Order book of ICSA is around 1300 crore.
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Posted By: ganeshbhandary
Date Posted: 27/Apr/2008 at 10:44pm
| only concern is that order it is getting from state electricity boards.looks like a restricted geographical spread. I heard they are planning for some overseas equisition can anybody throw some light on that.on the whole addresable market size is so big there is lot of scope of market cap expansion from present Rs1800cr which has kept it as my major holding in the portfolio. |
Posted By: shivkumar
Date Posted: 27/Apr/2008 at 11:51pm
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ICSA will benefit from the gas pipeline business which goes on stream in 2009. The company is poised to gain from the city gas distribution services as well. Apart from power, ICSA's software can be tailored to meet requirements of oil and water industries as well. |
Posted By: stockaddict
Date Posted: 28/Apr/2008 at 12:50pm
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Key Takeaways from ICSA India Concall: < ="http://202.87.40.52/promos/sponsor_news.js">ICSA posted a profit after taxation of Rs 126.5 Crores for the Year ended March 31, 2008 as compared to Rs 58.92 Crores for the Year ended March 31, 2007 Total Income has increased by 103.17 %, from Rs 333.25 Crores for the Year ended March 31, 2007 to Rs 677.05 Crores for the Year ended March 31, 2008 Basic EPS stands at Rs.32.01 per share of Rs.2/- each as compared to Rs.89.31 per share of Rs.10/- each for the previous year. The embedded systems business group has contributed about 65.11% of the total year end revenues and has contributed about 67% to the 4th quarter revenues. ICSA secured contracts worth Rs. 43.97 crore from Northern Power Distribution Company of A.P. Limited and Transmission Corporation of Andhra Pradesh. Current order book Rs 900 crore Execution for embedded will take 6-8 month and for construction 12-18 month Company bided for Rs 1350 crore order, which is in pipeline to get it R&D expenses for FY08 was at Rs 18 crore Company expect embedded business biz will go up by 70% in next two year Source: www.indiaearnings.com |
Posted By: gyansr
Date Posted: 29/Apr/2008 at 5:30pm
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Company expect embedded business biz will go up by 70% in next two year
does this mean that embedded business will grow 30-35% CAGR or 70% CAGR. Seeing the growth of ICSA looks like later is true. What are the opinions on this?
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Posted By: gyansr
Date Posted: 03/May/2008 at 12:07pm
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Sorry to misunderstand the message guys... Embedded business will go up by 70% only means that the mix of businesses between Transmission infra and embedded solution will change in favor of embedded solution and it will become 70% in next 2 years. Actually management has guided for 100% + growth for the next year.(we will maintain same growth as last year |
Posted By: kaizenbudhi
Date Posted: 03/May/2008 at 7:20pm
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Whats important is the opportunity the management has indicated in the concall alongwith the solid results. Overall it has been mentioned as $20 billion dollars. With Power sector having $11.68 billion opportunity. IMR opportunity -> Rs. 30000 crore. Distribution t/f -> Rs. 5500 crore. Agriculture load mgmt system -> Rs. 5250 crore. & ICAP -> Rs. 7500 crore.
ROCE & ROE are also very high. In all a great stock to own. Have seen this grow from Rs. 80 in early 2005 to Rs. 2400.(Rs. 480 after splits) now. Dont know how much more to go.
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Posted By: deepinsight
Date Posted: 07/May/2008 at 9:42pm
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http://www.moneycontrol.com/news_html_files/news_attachment/2008/ICSA%20_India_%20Ltd.pdf - http://www.moneycontrol.com/news_html_files/news_attachment/2008/ICSA%20_India_%20Ltd.pdf
------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: pinaki
Date Posted: 08/May/2008 at 12:39pm
| The executive director of ICSA Mr. Venkat Reddy has tendered his resignation which has been accepted. |