Not the best quarterly result, stay patient. Exit, re enter when i recommend again.
It was in the early 2000s so called IT bubble time, Cyber Tech Systems was one of the hot picks from the mid-cap IT space and touched a life time high of Rs. 1500. Then, the IT spirits vapour, this stock too fell into the bear grip like other so many small IT companies. But, almost after one and a half decade, now the company introducing new product, entering new tie-ups for technology partners and sets up new facilities, We feel this company is going to write another success story.
Cybertech Systems and Software (CSS) is IT company providing professional consulting services. The Company provides its services in SAP, geographical information systems (GIS), network services and custom technologies. The Company provides advanced technology centers (ATC) for the training, development and support of SAP, ESRI, Cisco and Microsoft technologies and has strong relationship with those companies. The Company’s GIS practice focuses on providing computer information systems (CIS) assessment, application development, integration and maintenance services. The custom technologies practice offers services in software application development, maintenance, support, modernization and migration using Microsoft, SUN, IBM, and Oracle technologies. It provides network services, which includes infrastructure, unified communication, wireless, security and data centre. Its subsidiaries include CyberTech Systems & Software Inc. and Cyber Middle East WLL, Bahrain. Mr. Viswanath Tadimety is the Chairman of the Company.
The Skoch Digital Inclusion awards is a highly renowned and prestigious platform instituting India’s highest independent civilian honors in the field of Governance, Finance, Technology, Economics, and the Social Sector. CyberTech’s selection has come after a fierce competition among more than 1000 entries from across the country, including leading national and international IT and technology companies. CyberTech’s selection for this ‘Order of Merit’ speaks volumes for the customer acceptance and quality of its GeoCivic® solution. It is a reflection of the success that CyberTech has had at building market-driven solutions on leading Esri technologies.
This achievement will not only help in creating a stronger GeoCivic® brand, but will also create better opportunities for CyberTech to reach out to its target market and deliver better value to its customers.
CyberTech's ArcGIS software-based application suite that caters to the end-to-end needs of local governments in India, to drive the GIS transformation initiative. The Bengaluru government identified the following functions as key drivers of the city's social and economic growth:
- Property tax management
- Road infrastructure management
- Road cutting approval system
- Optical fiber cable (OFC) license issue management
- Citizen complaint redress
- Birth and death registration
These functions were thus chosen as the primary candidates for the GIS transformation drive, and CyberTech is helping the government capture the locational intelligence residing in the data.
The company's financial performance also showing steady improvement. For the trailing twelve month period ended June 2014, the company reported a sales income of Rs. 68 crore and EPS of Rs. 4.1. Going forward, financial performance are expected to jump as the company introduce new products and services, technology tie-up and new recruitment. We feel the stock will have the potential to be a Multi-bagger in the medium term.
Key Risks: The stock has inherent risks of a micro cap including liquidity. Industry wide problems including exchange rate, legal and regulatory could be an issue. Any impact on profits will affect dividend payout and thus the dividends.
Conclusion: The Company has been a steady, high dividend yield payer in the past few years and with price appreciation could be a very interesting bet in the future. It has relationships with the likes of Microsoft and Cisco, and could be an interesting play in GIS. The Promoters have increased their stake in the past few months, which is encouraging. In case the price goes down significantly, it could be a very interesting opportunity in terms of high dividend yield.
More about the company - http://www.cybertech.com/whyCybertech/aboutus.aspx
Cyber techs top clients :
Research not complete - all though even after speaking to the management, i still have a few doubts.
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