PLEASE SEE: All big report are Strictly long term stocks. A couple of bad quarters will not change my opinion,
Draft 2 - Research is still not complete
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Dynacons Systems & Solutions was incorporated as a private limited company on September 26, 1995 and was converted into a public limited company on November 30, 1999. It is an IT company with global perspectives with its headquarters at Mumbai and branches all over India and at multiple locations abroad.
Dynacons was evolved by a team of professionals with expertise in IT solutions. These activities started twenty years ago with management consultancy, which created the need for a software consultancy that carved the niche of supply of hardware and software as a package in the form of a “solution”.
The company has created a niche market and image with three main aspects -- Innovation, Technology and Services. All these made Dynacons a reliable source for providing IT solutions to its customers. The company has the technical expertise and the service delivery infrastructure to serve customers at a level of quality consistent with their expectation. Dynacons helps in the selection of the right technology and application that will yield the greatest return and build a business case for implementation based on a lower total cost of ownership and higher performance.
. Its Enterprise Services offerings include a wide spectrum of Enterprise IT and Office Automation Services including Infrastructure Managed Services, Breakfix Services, Managed Print Services, Cloud Computing, Systems Integration Services, and Applications. The key verticals driving growth for the company are - BFSI, Education, and the Government sector. Company has recently entered into several new strategic partnerships with Global IT Companies like Oracle, Aruba, Riverbed. Company has added several key customers in these segments towards managing their IT Infrastructure and Networking for their offices and branches. Dynacons has bagged the Managed Services order for Maharashtra Co-op Bank for managing their Data Centre and Disaster Recovery Centre for a period of 3 years.It has also undertaken several solution deployments such as Reserve Bank of India, State Bank of India, Central Bank, Bank of India, CGGVeritas, Breach Candy Hospital, etc. Company received recognition as the Emerging IT Infrastructure Services Company by CIO Choice. Link to various customers of the company is here.
The System Integration (SI) segment is the main contributor to the revenue growth for the company. Dynacon has also collaborated with large System Integrators for working together on large projects. In FY 14 , it won projects with Tata Consultancy Services and Atos.
The company has obtained recognition with Intel as IASP (Intel Authorized Solution Provider). There are only 20 companies in India, which enjoy such a status of IASP. The company is a co-owner of 'Millenium PC' brand of computers in Mumbai and Microsoft OEM System Builder partner. Dynacon’s client base includes 1500 business firms like Indian Airlines, National Insurance, Bank of Maharashtra, Intel Asia Electronics Inc, Onida (Mirc Electronics) and Breach Candy Hospital. The company has a fully-equipped workshop for assembly and testing, software installation and configuration. data processing, software development and R&D facilities.
Areas Of Business Covered:
Dynacons is providing services to many clients in areas such as education, government and public sector, shipping, healthcare, banking , BPO, manufacturing and entertainment.
Education:- It is providing its services to D J Sanghvi College Of Engineering, Father Agnel Institute, Mithibai College Of Commerce & Economics, N M College of Commerce & Economics, National Institute of Industrial Engineering (NITIE), Narsee Monjee Institute of Management Studies (NMIMS), S P Jain Institute of Management & Research, etc.
Government & public Sector:- Government of Goa, Revenue Department, Goa Electronics Ltd, Bharat Electronics Ltd, All India Radio, Indian Airlines and AIR India, etc.
Shipping & Logistics:- All Cargo Movers (India) Pvt Ltd, Geologistics Pvt Limited, Prudential Shipping, Shipping Corporation of India, Natwar Parikh Group, etc.
Healthcare:- Breach Candy Hospital & Research Centre, Blue Cross Laboratories Ltd, BSES Mg Hospital, Merck, Nair Dental Hospital. Banking:- Dena Bank, Financial Technologies (India) Ltd, SIDBI, National Insurance Company, etc.
BPO:- E2E technologies Pvt Ltd, Sitel India Pvt Ltd, Kashi Infotech, 3 Global Services.
Manufacturing:- Automotive Manufacturers, Advani Oerlikon Ltd, Larsen & Toubro Ltd, Bombay Dyeing Ltd, Mazagoan Docks.
Entertaintment:- Balaji Telefilms Ltd, Shangrila India Ltd, Milestone Entertainment Ltd, Baba Digital.
Draft 2 - Research is still not complete
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Dynacons Systems & Solutions was incorporated as a private limited company on September 26, 1995 and was converted into a public limited company on November 30, 1999. It is an IT company with global perspectives with its headquarters at Mumbai and branches all over India and at multiple locations abroad.
Dynacons was evolved by a team of professionals with expertise in IT solutions. These activities started twenty years ago with management consultancy, which created the need for a software consultancy that carved the niche of supply of hardware and software as a package in the form of a “solution”.
The company has created a niche market and image with three main aspects -- Innovation, Technology and Services. All these made Dynacons a reliable source for providing IT solutions to its customers. The company has the technical expertise and the service delivery infrastructure to serve customers at a level of quality consistent with their expectation. Dynacons helps in the selection of the right technology and application that will yield the greatest return and build a business case for implementation based on a lower total cost of ownership and higher performance.
. Its Enterprise Services offerings include a wide spectrum of Enterprise IT and Office Automation Services including Infrastructure Managed Services, Breakfix Services, Managed Print Services, Cloud Computing, Systems Integration Services, and Applications. The key verticals driving growth for the company are - BFSI, Education, and the Government sector. Company has recently entered into several new strategic partnerships with Global IT Companies like Oracle, Aruba, Riverbed. Company has added several key customers in these segments towards managing their IT Infrastructure and Networking for their offices and branches. Dynacons has bagged the Managed Services order for Maharashtra Co-op Bank for managing their Data Centre and Disaster Recovery Centre for a period of 3 years.It has also undertaken several solution deployments such as Reserve Bank of India, State Bank of India, Central Bank, Bank of India, CGGVeritas, Breach Candy Hospital, etc. Company received recognition as the Emerging IT Infrastructure Services Company by CIO Choice. Link to various customers of the company is here.
The System Integration (SI) segment is the main contributor to the revenue growth for the company. Dynacon has also collaborated with large System Integrators for working together on large projects. In FY 14 , it won projects with Tata Consultancy Services and Atos.
The company has obtained recognition with Intel as IASP (Intel Authorized Solution Provider). There are only 20 companies in India, which enjoy such a status of IASP. The company is a co-owner of 'Millenium PC' brand of computers in Mumbai and Microsoft OEM System Builder partner. Dynacon’s client base includes 1500 business firms like Indian Airlines, National Insurance, Bank of Maharashtra, Intel Asia Electronics Inc, Onida (Mirc Electronics) and Breach Candy Hospital. The company has a fully-equipped workshop for assembly and testing, software installation and configuration. data processing, software development and R&D facilities.
Services Offered:
- Consulting Services
- System Inetgration
- Networking Solutions
- Software Solutions
- IT infrastructure Mgt.
- Security Solutions.
- E-Commerce & web-based software development & solutions
- Enterprise business software solutions
- Development of innovative software products and various types of consultancy services
- Internet solutions
- System integration and networking solutions
Key Strengths:-
Over 2000 Satisfied & Regular Customers
• Cisco Premium Partner
• Intel Premier Provider
• Member - INTEL e-Business Network
• Intel ISP Program Partner
• IBM Premium Business Partner
• Microsoft OEM System Builder Partner
• Watch Guard Security solutions provider
• HP - Compaq Business Partner
• Parrus (Neoware) Solutions for Thin Clients
• SUSE Novell Business Partners
• Highly Experienced & Certified professionals, Experienced multi-disciplinary Consultants, Professionally Managed Software Development (Customized) Center
• Strategy to be with Clients - " Concept to Commissioning & Beyond "
Its experienced team of Intel, Novell, Microsoft, Linux, Cisco, Java & Oracle Certified professionalsand multi-disciplined consultants enhances DYNACONS' operational strength.
Clientele:
Dynacons is providing services to many clients in areas such as education, government and public sector, shipping, healthcare, banking , BPO, manufacturing and entertainment.
Education:- It is providing its services to D J Sanghvi College Of Engineering, Father Agnel Institute, Mithibai College Of Commerce & Economics, N M College of Commerce & Economics, National Institute of Industrial Engineering (NITIE), Narsee Monjee Institute of Management Studies (NMIMS), S P Jain Institute of Management & Research, etc.
Government & public Sector:- Government of Goa, Revenue Department, Goa Electronics Ltd, Bharat Electronics Ltd, All India Radio, Indian Airlines and AIR India, etc.
Shipping & Logistics:- All Cargo Movers (India) Pvt Ltd, Geologistics Pvt Limited, Prudential Shipping, Shipping Corporation of India, Natwar Parikh Group, etc.
Healthcare:- Breach Candy Hospital & Research Centre, Blue Cross Laboratories Ltd, BSES Mg Hospital, Merck, Nair Dental Hospital. Banking:- Dena Bank, Financial Technologies (India) Ltd, SIDBI, National Insurance Company, etc.
BPO:- E2E technologies Pvt Ltd, Sitel India Pvt Ltd, Kashi Infotech, 3 Global Services.
Manufacturing:- Automotive Manufacturers, Advani Oerlikon Ltd, Larsen & Toubro Ltd, Bombay Dyeing Ltd, Mazagoan Docks.
Entertaintment:- Balaji Telefilms Ltd, Shangrila India Ltd, Milestone Entertainment Ltd, Baba Digital.
The adoption of Social media, Mobile, Analytics and Cloud (SMAC) technologies is expected to drive growth in all the segments. Cloud and client maturity are the major drivers for this, especially in IT. Dynacons is adapting this technology for upgrading its existing solutions as part of its offerings.
Expected opening up of infrastructure sectors like roads, airports and sea ports, national e-Governance initiatives and implementation of Mission projects, is going to drive an increase in IT spend. This presents unprecedented opportunity for growth for the company.
Company derives more than 15% of its revenue from Storage space, which has grown at a pace of 25% YOY for last 3 – 5 years. Company has adopted revolutionary Software Defined Strorage (SDS) in the enterprise technology space. This is an upcoming technology in this segment and article on company’s promoters this was printed on the cover page of Channel World Magazine September 2014. Link here
SDS Technology provides the following benefits over the traditional data storage method:
• Flexibility—Hardware-defined storage solutions are rigid, proprietary systems that lock you into specific vendors and protocols. By contrast,software-defined storage tends to be based on open systems that are much more adaptable to changing needs and that allow you to mix and match storage layers for optimal cost effectiveness.
• Scalability—Software-defined solutions provide immediacy and relatively limitless scalability. To scale a hardware-based system requires the time and money and floor space of buying—installing—configuring the hardware. To scale a software-defined system, on the other hand, requires just a couple of software commands.
• Economy—When considering the real cost of ownership (RCO), software-defined storage reduces the cost of buying new gear, the cost of operating the equipment, and even the cost of disposal fees. Taken together, the cumulative effect of all these cost reductions can generate savings as large as 70% or more.
• Resource leveragability—With the operational simplicity of software-defined storage, businesses don’t have to maintain engineering overhead to develop separate solutions for different hardware and media, thereby allowing IT departments to focus more resources on strategic business issues.
SDS Technology provides the following benefits over the traditional data storage method:
• Flexibility—Hardware-defined storage solutions are rigid, proprietary systems that lock you into specific vendors and protocols. By contrast,software-defined storage tends to be based on open systems that are much more adaptable to changing needs and that allow you to mix and match storage layers for optimal cost effectiveness.
• Scalability—Software-defined solutions provide immediacy and relatively limitless scalability. To scale a hardware-based system requires the time and money and floor space of buying—installing—configuring the hardware. To scale a software-defined system, on the other hand, requires just a couple of software commands.
• Economy—When considering the real cost of ownership (RCO), software-defined storage reduces the cost of buying new gear, the cost of operating the equipment, and even the cost of disposal fees. Taken together, the cumulative effect of all these cost reductions can generate savings as large as 70% or more.
• Resource leveragability—With the operational simplicity of software-defined storage, businesses don’t have to maintain engineering overhead to develop separate solutions for different hardware and media, thereby allowing IT departments to focus more resources on strategic business issues.
I feel that with supernormal explosion in data these days and to save every bit of it would compel organizations to go for SDS technology and will benefit Dynacon going forward.
A snapshot of various parameters considered for arriving at a buying decision.
A snapshot of various parameters considered for arriving at a buying decision.
Rs Crs
|
2011
|
2012
|
2013
|
2014
|
Q1 FY 15
|
Q2 FY 15
|
Remarks
|
Net Sales
|
42.33
|
52.2
|
58.7
|
77.65
|
22.6
|
Growing Topline
| |
Net Profit
|
0.77
|
1.03
|
0.52
|
0.58
|
0.16
|
NPM should improve going forward
| |
Market Cap
|
5.62
| ||||||
Market Cap / Sales
|
0.07
|
Market cap of around 7% of sales.
| |||||
Book Value
|
27.66
| ||||||
Current Price
|
9.48
| ||||||
CMP / Book Value
|
0.34
|
Trading at 34% of its book value.
| |||||
Promoter Holding
|
29.67%
|
29.67%
|
29.67%
|
30.09%
|
31.09%
|
31.49%
|
Increasing gradually.
|
Pictures have been taken from the website and annual reports.
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