Weekend Dig: InfoTech Enterprises Ltd.

Profile of the company:

InfoTech Enterprises Limited is an India-based information technology (IT) consulting, services, and business process outsourcing company. It provides services to the aerospace, automotive, industrial machinery, utilities, telecommunications, transportation, government and finance and retail markets worldwide. The Company offers services across a range of technologies to include the utilities, transportation and government (UTG) and the manufacturing and industrial products (EMI). The UTG vertical renders services to customers in industries, such as power, gas, telecom, transportation and local government. The service offerings include geospatial data services and geospatial technology services. The EMI vertical provides services to customers, such as aerospace, automotive, off-highway transportation and industrial and commercial products. Its service offerings include engineering design, embedded software, IT solutions, manufacturing support and technical publications.

Company website: http://www.infotechsw.com/

Performance over the last 6 months:


The stock has doubled in the last 6 months. The graph indicates a steady growth, void of surges.

Investment Rationale:

• Operates in an interesting space - Outsourcing, services, GIS
• Operations is India, Germany, Netherlands, UK, US, Australia, Singapore and Dubai
• Recently opened a development center in Kakinada
• A self-owned campus (2 acre land) in Electronic City, Bangalore is under construction
• Mutual funds seem to be going ga-ga on this one. In fact, this scrip has the highest weightage in the top performing IT fund, SBI Magnum IT (a whopping 17.43%!)
• Impressive quarterly numbers:
• Operating Revenues up 52.1% Y-on-Y, 9.0% Q-on-Q, at Rs.1430.4 million.
• Net profit before JV’s share at Rs. 200 million for the quarter, up 69.6% Y-on-Y.
• Net addition of 406 employees during the quarter.