Thursday, December 27, 2007

Allied Computers International (Asia)...Ltd...Is it a Buy?....It is a strong buy now....

Under this Heading I gave a call on Allied Computers International (Asia)...Ltd;
Apart from Bulk deals more news are coming.Allied Computers International (Asia)...Ltd is going in for acquisition.....Seems Allied Computers International (Asia)...Ltd is a buy at this level....
I give a strong buy call on Allied Computers International (Asia)...Ltd:

MUMBAI: Allied Digital Services, the Mumbai-based mid-cap IT firm, is closer to two small-size acquisitions.
A company insider the announcement about buyouts - one at home and another overseas — would be made in the first week of January.
These acquisitions will be in the range of Rs 60 crore to Rs 80 crore in the BPO and infrastructure management space. They will be funded through the funds raised in the recent IPO, to the tune of Rs 86 crore.
The infrastructure management firm - which has been identified — has an employee strength of about 200 people; it will be complementary to the Network Operation Centre (NOC). The buyout is expected to contribute to Allied’s revenues from the end of fiscal itself, the source added.
Nitin Shah, MD, Allied Digital Services, told DNA Money: “I don’t want to make any comment anything on buyouts as this stage and if company will finalise anything in near short term, it will inform the exchanges.”
It expects Rs 42 crore in net profit on revenues of Rs 270 crore in this fiscal with solutions business contributing 70% and services business 30%-35%.
The company earns 50-55% operating margin in the services segment compared with 15-20% in the solutions segment. It also sees services business driving growth with its revenue share increasing from current 22% to 35% in this fiscal and 50% by 2012.
The total unexecuted order book stands currently at Rs 140 crore comprising Rs 65 crore for solutions and Rs 75 crore for services, executable over the next one year.
Analyst Vinod Hassija with Reliance Money said in recent research report that Allied’s presence in the network infrastructure & managed services will help it move ahead of competition as the small and medium enterprises segment is undergoing huge growth and the SME space are the prime targets for IT services providers, network infrastructure and managed services are the most lucrative opportunities.
The recent set-up of NOC and security operations centre would provide a major boost to services revenues.
From a system and network integrator (solutions business), Allied Digital has been successfully transforming into a managed services and tech support services provider by incubating new offerings like infrastructure management (including remote), network security management and technical BPO services...

18 comments:

  1. Hi Friend,

    Please note that the news you have posted is about "Allied Digital Services" but you are recommending "Allied Computers International (Asia)". I hope you understand the mistake.

    Regards,
    mr_vasanthakumar@yahoo.co.in

    ReplyDelete
  2. hi rajeev,yes i have bought half of my artson back@91 although i had sold it@87,but am very happy with that,thanks to u.no i m not living abroad ,i do my stock planning at night cause can work uninterruptedly at that time.today got into allied computers@69,it went into lower circuit but not disturbed,am sure its laptop is going to be a success n i have conviction in ur calls.thanks raima

    ReplyDelete
  3. Dear Sir,

    I came across your views while browsing MMB. I found them very useful and made purchases in Artson engg. @ 87.50/-.

    You also suggested Vadilal industries. Is it still a buy at Rs.78/- as of today.

    regards
    venkat

    ReplyDelete
  4. Yes, That was a mistake and I am sorry for that.Good that u people look at this and show me my mistake.I am thankful for that.
    Due to short time, sometimes I over look such type of things.
    Thanks again....

    ReplyDelete
  5. thnx Rajeev sir for making ur seprate blog i have been reading ur messages from last one year at mmb recently i bought some of ur recommended stock like xl tele sold earlier and miss, garden silk mill, garnet construction sold in hurry and got decent profit :) .

    Ahmed

    ReplyDelete
  6. Dear Rajeevbhai,

    its nice to seeyour blog with daily updates. Nowonwards, we are not at the mercy of MMB. I want share my views on a Ahmedabad based group stock Meghmani Organics Limited
    Meghmani may be taken in F&O segment by Feb and having target as 60/-, CMP is 36.3 (Its among first three chemical Indsutri group of Gujarat doing very sound business in dyes, pigments and agrochemicals with excellent products & projects in pipeline.

    ReplyDelete
  7. Hi Venkat,
    Hold Artson Eng for 6 to 12 months.
    Vadilal Ind is good and a buy as well.

    ReplyDelete
  8. Hi Dinesh,
    Meghmani Organics Limited , not tracking though heard from some friend that it is a great story developing...

    ReplyDelete
  9. Dear Rajeev,

    As per your conformaion there is a mistake for Allied Computers International(Asia) vs Allied Digital Services. Both looks good in the chart. SO on which one you are providing buy call.

    Rgds
    Debasis

    ReplyDelete
  10. Sir,

    Bot Allied Computers Int Asia @ 64 today.

    Keep guiding.

    Regards.

    ReplyDelete
  11. allied computers on down circuit? What could be the reason after they have annonced the launch of their Rs 15000/ laptop in January 08? Nakulg do give us some analysis.

    ReplyDelete
  12. hi nakulji..

    thanks for the infor on sumeet/galaxy and IOL.

    I want to know abt this 2 companies heard from moneycontroll boarders that they are big big multibaggers, some how I too feel the same
    1) english india clay
    2) Aeonian Investments Company Ltd

    Aeonian is giving heafty bonus . may be another jai corporation story.. wats ur comments on this. nakul ji. im planiong to buy allied computers .thank inadvance nakul..

    waiting for ur valuable comments

    thanks
    santhosh kumar J

    ReplyDelete
  13. Dear Rajeev,

    Bought 1000 qty Allied Computers International @ 69/-. Can you check out and suggest if it better to book loss and shift to Allied Digital or can I hold for some time (may be 6 months) to see the price back to levels where I bought.

    Regards,
    Kiran

    ReplyDelete
  14. Dear Rajeev,
    I have also the same query as Kiran. I think we have done mistake by buying allied computer we should have to buy allied digital services. as i saw today ur message abt. the news u have given abt. allied comp. is for allied digi its by mistake. i have bought and avg. at 62. wat do u think we should book loss and switch to allied digital.
    Please reply early to minimize the loss as its going LC daily.

    ahmed

    ReplyDelete
  15. Hi Kiran&Ahmed,
    No, I don't think you both had done a mustake in buying Allied Comp..instead of Allied Digital...Not saying Allied Digital is bad but I am bullish on Allied comp...
    And I am confident about my pick...No need to sell in loss..but as I have written many times, if you bothj feels that you have made a blunder while buying then please get out taking loss...Without confidence in what you pick , it will constantly pinch youas it will go down...
    As I have written umpteen times at mmb and now here that my calls are not speculative...and hence takes time to mature...so if you both have no stomach to hold for a year better sell it...and sleep at night well...
    My first RULE, that I always tell whoever comes to ask me about stock market is,if you can't sleep in night due to price fluctuation, don't come in market....Your sound sleeping in night is a must and investing in stocks takes away that , then no need to come here...
    Allied Comp will go up and I am sure about it...

    ReplyDelete
  16. Venkat.
    Vadilal Ind is still a buy....Buy it without any hesitation...

    ReplyDelete
  17. thanks rajeev,
    Actually i was just confuse b/w allied comp and allied digital now its ok if it is long term pick. i got profit in many script by holiding long term many of my script was 20 to 50% in loss in may2006 now most of them doubled even triple in just 1.7 year. like essar oil, nagaarjun fertiliser,mercator, mcnally bharat ect.

    Ahmed

    ReplyDelete
  18. Hi Rajeev,

    Thanks for clarifying. I have no problem in holding the script for about a year. Going by your past picks, I am also not worried about intermediate flucuations.

    My intention to my earlier post was to get clarfied from you if you originally gave call about Allied computers or Digital as I was confused.

    Thanks for guiding.

    Regards,
    Kiran

    ReplyDelete