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Monday, January 3, 2011

Hot Pick : Geodesic Ltd. Bse Code : 503699

Geodesic Ltd (formerly Geodesic Information Systems Ltd) was incorporated in 1999 by Pankaj Kumar, Kiran Kulkarni, Prashant Mulekar and Mahesh Murthy. A publicly traded company, Geodesic is listed on the Bombay Stock Exchange (BSE), the National Stock Exchange (NSE) and its Foreign Currency Convertible Bonds (FCCB) is on the Singapore Stock Exchange. With twelve offices spread across the globe, four marketing partners and 525 employees, Geodesic earned revenues of US$ 133 million and a net profit of US$ 52 million during FY 2009. Geodesic's first half of 2010 revenues stood at US$ 60 million with a net profit of US$ 24 million.

Geodesic's real time content, communication and collaboration platform, in conjunction with a powerful Customer Alignment and Relationship management (CRM), works seamlessly across the web, desktops and mobile devices. The flexible and scalable platform addresses both the retail and the enterprise segment, and has been well received by the banking and financial services industry, portals and publishers, enterprises including SMEs, mobile device manufacturers, telecom operators and retail mobile users.

In its constant quest to evolve and expand its suite of products and solutions across segments and new geographies, Geodesic acquired

•Picopeta Simputers Pvt Ltd, a Bangalore-based company, engaged in building hand held devices and solutions for the developing world.

•Engage Solutions, a Hong Kong-based software solutions company for its comprehensive Customer Alignment and Relationship Management solution.

•Swedish firm, Clangula IT to address the lucrative North European markets and work closely with handset manufacturers.

•E Dot Solutions, a web 2.0 company engaged in large portal deployments.

•Chandamama India Ltd - the number 1 Indian children's print magazine for the purpose of acquiring content - digitizing and mobilizing it to address the growing retail mobile users.

•Interactive Networks Inc., a Latin America-based software provider of advanced instant messaging and value added solutions. This acquisition expanded Geodesic's product profile and reach beyond India, Europe, Asia and the US into South America and Africa.

A proud recipient of several international awards including Deloitte Touche Tohomatsu Fast 50 and Fast 500 Asia Pacific for five consecutive years, Red Herring 'Top World 100' small cap technology companies in 2005, Geodesic has been featured in Forbes 200 'Best under a Billion-Asia Pacific' for 2008 and 2009.

Geodesic's Mundu IM and Mundu Radio have been adjudged as the one of the top 10 and top 12 mobile products by C|net and PC Magazine respectively, not to mention Mundu IM winning the best mobile internet service at GSM Asia for the year 2009.

Geodesic recently made a buy back offer at a maximum price of Rs.150 per share. It's 52 Week high is 147 plus, and currently trading at a mouth-watering price of just 83, this stock is going to be a Fund Manager's delight in the coming year! The fundamentals of the company are excellent with Half year eps for current financial year at 17.85 already in the bag. The expected eps for full year is likely to be in the Rs.35-40 range, this stock is currently available at a PE of less than 3! PE ratios of peer companies range from 12-25. This tells you how much scope for appreciation is there in this stock. The stock should ideally trade in the Rs. 450-500 range based on current fundamentals. This stock is definitely a potential multi-bagger for 2011. Happy investing & Happy New Year!

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