Equity Watch

Kaashyap Technologies : Risk -Reward ratio and SWOT analysis favours a BUY

Kaashtap Technologies Limited.(KTL) was incorporated in the year 1997. The Company was earlier named as Kaashyap Radiant Systems Ltd and came into public by its Initial Public offer in the year 1999.The company has rich experience in implementing SAP and has successfully implemented SAP projects in India and Middle East.

KTL is a Complete Service provider of IT Consulting Services, which includes designing and constructing systems that are powerful enough to carry forward the business through the new millennium.KTL has collaborated with several technology partners to provide a wide range of solutions for the Large and SME segments.In short KTL stands for:

  • Enterprising Services
  • Software Development
  • SAP Services
  • Product Engg
  • IT Training and Staffing
  • Financial Services
  • Telecom
  • BPO/ Supply Chain Management/ Service Oriented Architecture
  • Content Mgt. Solutions 

Financials of the company are showing a definite improvement QoQ

Scrip Code : 532283    Company Name : Kaashyap Technologies Ltd

Type UnAudited UnAudited UnAudited UnAudited UnAudited UnAudited
Period Ending 31 Dec 07 30 Sep 07 30 Jun 07 31 Mar 07 31 Dec 06 31 Mar 07
No Of Months 3 3 3 3 3 12
Description Value(Rs. million)
Net Sales / Interest Earned / Operating Income 185.59 112.02 102.40 12.50 8.70 21.20
Other Income 0.10
Total Income 185.59 112.12 102.40 12.50 8.70 21.20
Expenditure -125.78 -100.21 -92.38 -3.96 -3.41 -12.70
Operating Profit 59.81 11.91 10.02 8.55 5.29 8.50
Interest -4.99 -0.34
Profit Before Depreciation and Tax 54.82 11.57 10.02 8.55 5.29 8.50
Depreciation -0.92 -0.46 -0.17 -0.17 -0.17 -0.62
Profit before Tax 53.90 11.11 9.84 8.38 5.12 7.88
Tax -9.35 -1.21 -0.17 -0.02 -0.02 -0.06
Net Profit 44.54 9.90 9.68 8.36 5.11 7.81
Equity Capital 359.10 196.57 155.32 56.32 56.32 56.32
Preference Capital 40.56 40.56 40.56 40.56
Reserves 746.65 213.90 132.78
Basic And Diluted EPS after Extraordinary item 0.10 0.15 0.09 0.14
Basic EPS after Extraordinary items 0.23 0.18
Diluted EPS after Extraordinary items 0.12 0.05
Nos. of Shares – Public 356,621,892.00 194,096,892.00 152,814,592.00 53,833,016.00 52,820,635.00 53,833,016.00
Percent of Shares-Public 99.31 98.74 98.39 95.58 93.79 95.58
Operating Profit Margin 32.23 10.63 9.79 68.40 60.80 40.09
Net Profit Margin 24.00 8.84 9.45 66.88 58.74 36.84
Cash EPS
  Notes Notes Notes Notes Notes Notes
  Detailed Detailed

KTL has an Equity of Rs. 36 crores with  36 crore shares of Re 1 FV. At CMP of around Rs. 2.0 market capitalisation is less than Rs. 75 crores and with an expected EPS for FY09 of close to Re.0.5,the share is presently available at P/E of less than 4. Company is likely to report better results for FY08 and may surprise the investors with a BONUS,Dividend and Rights at par.Company is Debt FREE and its share has  potential to touch double digit in 6 months time.

BUY is recommendd at CMP of Rs. 2. with atleast 6 months HOLD.

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information


3 thoughts on “Kaashyap Technologies : Risk -Reward ratio and SWOT analysis favours a BUY

  1. mihir says:

    read ur idea and invested 58000 qty in kaashyapp

    what i need to do

    as per one of broker it will touch in double digit
    does ur advice is backed by fundamental

    see message send by e raja on moneycontrol.com

    plz advice stop loss and exit price

    thank u

    i like ur ideas like to know more abt it

    thank u for giving penny stock ideea which may be multi bager






  2. Ramesh says:

    Dear Sir,
    I am follower of you blog and tracking them. Most of your bets have performed wonderfully. I have invested in Kaashyap based on your analysis at 2.00. Now it is at .73 paise. Kindly let me know your view on this stock, can I average at CMP.
    Expecting your response


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