Stocks To Watch – Geodesic

Geodesic (Code : 503699) :- Operates in a niche area of developing various innovative products in the information, communication and entertainment space. It is widely recognized for its scalable content, contact management, presence, real-time communication and collaboration platform. The company has effectively used this platform to build and deploy innovative front-end applications, viz. Mundu Instant Messenger(IM), Mundu Radio, Mundu Speak, Mundu SMS, Montage etc for the retail segment. Using the same platform company has also developed enterprise applications viz. Content indexing and referencing, Customer Alignment Relationship Management (CARM) and real-time communication and collaboration. Thus company has built an enviable product line including – Push e-mail, interoperable IM, SMS over IP, voice over IP as part of communication
stack and content delivery platform for audio and video (live streaming & on demand) over IP. Recently company also entered the voice communication space with ‘Spokn’- the definitive Internet telephony service. To accelerate its growth momentum, company follows inorganic growth route and has regularly been making various acquisition across the globe. In the last 4 years company’s topline has grown at a CAGR of nearly 90%. Even for current fiscal, with dozen of its subsidiaries it reported a consolidated revenue of Rs 644 cr and PAT of Rs 248 cr i.e. EPS of Rs 25 on the current equity of Rs 18.45 cr having face value as Rs 2/- per share. With an OPM & NPM of 50% & 30% respectively, this technology company deserve much higher valuation.
To enhance the shareholder value company has announced buyback plan and has till date bought back nearly 2.77 lac shares. Share price has almost bottomed out and there is minimal risk of further downfall. A strong buy.

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