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Thursday, December 24, 2009

Hot Pick : Micro Technologies (India) Ltd. Bse Code : 532494

Micro Technologies (India) Ltd. is an IT based company, a leading global developer, manufacturer and marketer of security devices for its clients across the globe. Product lines include the much-needed security devices, life style and support systems and web-based software. Micro Technologies has a history of leading-edge security solutions products.

The valuations of the stock at current price of 150 are dirt cheap! The annualized EPS (consolidated) for FY 2009-2010 is Rs.70, which means the stock is trading at a ridiculously cheap PE ratio of 2. Peer companies command a PE ratio of 15-20, which shows the potential upside for the stock price of this company. As of 30th Sept, 2009, the promoters hold a healthy 32.49% stake in the company. The future seems bright for this company and investors can look for this value stock.

Some recent news about the company:

*Micro Technologies (India) Ltd. launched Micro Jai-Kisan in the city today. Dr. C P Joshi, Union Rural Development Minister, unveiled the innovative device for farmers at a press conference.

*Micro Technologies to parter with premier Israeli company to jointly provide security solutions.

*Micro Technologies listed for the NASSCOM "Innovative Products Award" for Wi-Fi Security system.

Company website: http://www.microtechnologies.net/index.aspx

Cheers!

PS: On 22 Dec, 2005, SKP Research came out with a BUY Report on this stock when the price was Rs.318 with a Target of Rs. 462 Here is the link: http://www.valuenotes.com/skp/skp_MicroTech_22dec05.pdf?ArtCd=72544&Cat=C&Id=993

22 comments:

Niranjan Shetty said...

Hi Superstar,

You are doing a great job by helping retail investers like us. Thank you for that.

Regarding Micro Tech I had a query.

The fundamentals of the company seems to be superb but even then the price seems to be stagnated.
There must be some catch right? otherwise why would no one be interested in by now when the valuations are dirt cheap?
Are there issues with the management? or anything that you know of?
Also whats the target and time frame you are expecting?

Thanks.

kochu said...

DEAR SIR,NOW YOU ARE A GOD TO ME THE REASON IS THAT IAM HOLDING MICROTECH 550 SHARES FOR RS 162 FOR A 3 MONTHS.BEFORE YOUR PICK IAM DESAPOINT ABOUT MICROTECH AND PLANNING TO SELL MICRO IN A HUGE LOSS.BUT AFTER YOUR PICK IAM HAPPY.SIR PLEASE TOLD ME ABOUT ITS TARGET.SIR PLEASE REPLAY TO ME.IAM WAITHING FOR YOUR VALUBLE REPLAY.YOURS FAITHFULLY PRASANTH

Nilesh Mahajan said...

Hi Superstar,

Thanks for publishing review on MT.

The fundamentals are great. The stock has been punished by markets for three reasons.

1. In the past there have been some insider trading for which SEBI had put sanctions on some brokers.
2. Promoters had played with options granting themselves cheaper options multiple times, not converting them when prices go down and repeating the same.
3. No rewards to shareholder inspite of having very good growth. Never declared bonus. Dividends did not increase above 20%, infact reduced in 2009 to 10%.

But still fundamentals are pretty good - if the figures can be believed. Now promoters are increasing their holding slowly.

I expect the market to give it lower valuations for some period...but still there is room for rerating till 8-9 PE ratio. Also, growth story is intact and they are expected to report 100+ EPS in 2011. Even if market assigns it a PE of 5-6, we're talking about a 3-4 bagger from here. I hold the stock in small quantity and will continue to hold it.

Vandana said...

Hello Superstar Navin, I want to thank you from the core of my heart for the good deeds you are doing for us retail investors.I bought Micro Tech on your recommendation and I am already sitting on a neat profit!! I also made huge capital gains in FCS soft and Bihar tubes before this...also on your recommendation. You are a boon for us. God will give you great reward for this free sewa you are doing. May God bless you and all your wishes fulfilled in the coming new year 2010. Happy New year dear!!

lots of love,
Vandana

Superstar said...

Thank you all for your comments and good wishes. I am touched :)
Micro Tech is a good stock to buy for value investors. It gives you great value for money at current price. Long term investors surely have a multi-bagger on their hands.

Wishing all of you a very happy, prosperous & healthy New year.

Cheers!

Niranjan Shetty said...

Thanks Nilesh! That answered my query. :)

I would also appreciate thoughts from Superstar too.

Regards,
Niranjan

Street said...

Mind blowing call, Sir! You are great!!!

Nilesh Mahajan said...

Hi Superstar,

The stock has moved up significantly and those who invested based on fundamentals are staring at good profits.

Thanks a lot for your timely post!

:)

Nilesh

SELVA said...

Hi Super star,

I came to visit your blog yesterday. I immediately bought Micto tech for Rs. 160. That time, i thought i have paid huge price for this stock. But within 30 minutes, it shoot up. Thank you so much to share your knowledge to us. Please keep continue your good work.

Regards,
Selva

Deepak said...

Try covering Geodesic. I would be surprised if you reject it. I have been with Micro tech for last 4 years and it is good that people have started recognizing it as a good value stock.

Ambrish said...

many thanks super star for ur earlier fantastic script: FCS Software. I sold partially to cover up my cost price. Now the remaining I have are in handsome profit. And today came to know that company going to declare bonus on 11th jan. is it a good buy still at 16?

Superstar said...

Hi everyone, thank you all for your comments. Ambrish, the good news keeps coming on FCS Software....a bonus news could take the stock to touch 20 levels also....who knows. FCS has quadrupled from the price I gave a buy call at & has been a star performer. But I would have booked my profits now or on another up-circuit in FCS and switched to Micro Tech instead. Micro Tech has just begun its journey, while FCS might be near the fag end for the time being. I may be wrong, but I would have bought Micro Tech now with the profits made in FCS.

Cheers!

Niranjan Shetty said...

Could you please comment on the targets and the time frame you are expecting?

Siva said...

Super*,

No word to say about your recommendation, Really you have a diamond eye... truely i dont have money to buy ur next recommendation, because ur previous recommended stocks are not stopping their rally...also i dont want to exit from PSL,Bihartubes and Microtech.... Heartly thanks for ur service... You really turned my investment path in profit.

Thanks
Old fan (Siva)

Niranjan Shetty said...

Hi Superstar,

This is my 3rd comment and I am a little dissapointed that I havent got any reply from you on my queries. I understand u r busy.

Regarding Microtech, I have heard from some brokers that
Promoters are buying the stocks and inflating the price so that they can exit at a higher rate. Is this info true? please share your thoughts on this.

Looking forward to your reply.

Thanks,
Niranjan

Superstar said...

Niranjan,

Thanks for writing here, and you understand correctly, it's impossible for me to individually reply to every query. So I have replied collectively to everyone.

If you have heard that the Promoters of Micro Tech are buying shares of their own company, then isn't that good news? When promoters buy shares of their own company, it is usually an indication of their confidence in their own company. So what are you cribbing about. Doesn't everyone buy shares so that they can exit later at a higher price? Don't you? Everyone is in the market to make profits.

Cheers!

Vini said...

Hi Naveen,

Can Micro Tech be bought at current levels of 207 ?

And till what level or time frame can Bihar tubes be held?

Thanks And Regards

Superstar said...

Hi Vini,

Micro Tech has gained 45% in a matter of just about two weeks since I gave a buy call on it. After such a steep rise corrections are natural and healthy also. It's always good to book some profits from time to time, but long term investors can buy on dips.

Bihar Tubes too has gained exactly 70% since I gave a buy call on it in a very short span of time. While in the long run, investors can still make more gains, it's always good to book some profits after such a steep rise.

Cheers!

imbull said...

Hi Super*, hope this post will find u in a good bullish :-) mood...have u seen Nakoda Textiles Ltd? What is ur call on it? If u find it is a multibagger, please start a seperate column for this scrip.

Dilip Kumar said...

Hi superstar

Your comment on cairn India and alstom projects with a time horizon of one year.

Dilip Kumar

Aspasi said...

Thanks for the heads up, been thinking about hitting the india market.

meenaa said...

dear sir
any new recomendations in 2010???