3i Infotech Ltd. (Code: 532628) (Rs.70) is a leading IT company and among the top 4 Indian software products companies. It provides software products and IT services comprising managed IT services, application software development & maintenance, payment services, business intelligence, document imaging & digitization, operations outsourcing (BPO) and IT consulting for the Insurance, Banking, Capital Market, Mutual Funds, Wealth Management and Government verticals. It services customers in over 50 countries across 5 continents. Its quality certifications include SEI CMMI Level 5 for software business, ISO 9001:2000 for BPO, ISO/IEC 27001:2005 for data centre operations and ISO/IEC 20000-1:2005 for data centre management services. Recently, the company has forayed into the domestic media and broadcasting industry offering services related to systems integration. On the other hand, it has set up a 100% subsidiary to consolidate all its BPO activities, which is spread across 200 Indian cities and contributes nearly 35% of its total revenue. At the same time, the company is acquiring J.P. Morgan Treasury Services’ national retail lockbox business
(NRLB), which will enable it to process over 700 million payments annually. Financially also, the company is doing well as it posted an encouraging performance for Q4FY09. Effectively on a consolidated basis, its FY09 total revenues were up 90% to Rs.2305 cr. and PAT shot up by 45% to Rs.282 cr. leading to an EPS of Rs.21 on its current equity of Rs.130.75 cr. It’s a professionally run company with good growth potential. Investors can safely buy this scrip at the current levels for 50-100% return in 12-15 months.
Related posts:
