Founded in 1997 Aurionpro solutions is a IT (software) products company. This company has 24 offices in 14 countries. While its North American headquarters is located in San Ramon, California; its global headquarters is located in Mumbai.
For more info check, http://www.aurionpro.com/
NUMBERS - THE LATEST
Market cap: 459 crores CMP on Day2 Feb2018: Rs 194 BV: 281
Revenue FY17: 638 cr Net profit FY17: 43 cr approx FV: 10
POSITIVES
1. The transformation of the company is evident in the results of the last 2 quarters, where it has managed a operating profit margin of around 17%
2. The company has over 1300 employees and around 29 Fortune 500 customers.
3. Aurionpro sold its global Access Management business to KPMG for around 200 crores.
4. For half year FY2018 the company EBITDA grew by 43% and net profit grew by 76% and the story of transformation has just begun.
INTERESTING INFO
1. Aurionpro which recently sold one of its division to KPMG at approx 200 crores is available at a market cap of around 450 crores.
2. It will be really interesting to see how this 200 CR will be utilized. Common sense and logic tells me a portion would go for retiring debt, one portion to invest in growth areas, one portion as reserves and one portion as a substantial dividend. We need to watch this space.
3. Aurionpro is participated in Money2020 to be held in Las Vegas in Oct 2017
4. Company is winning new orders from diverse set of customers from various geographies. Details can be found in their website
NEGATIVES - POSSIBLE RISKS
1. Any global political or economic shock could impact the share price of this company.
2. As the promoter holding is relatively low for this small cap, this stock could be highly volatile.
MY TAKE
Aurionpro solutions is a company that has undergone a structural transformation. Over a period of 4 years, the management has methodically transformed this company from a software services company to almost a software products company. The positive consequences of this transformation will play out over the next 1 - 3 years.
The focus areas of the company are Enterprise security and Digital innovation. Both these are high growth areas that offer tremendous potential. Apart from this the company is also into various banking, logistics and government solutions. Looking at the future scope and trajectory of this company, it is deeply undervalued, and all set to make higher highs over the coming months and years.
Aurionpro is an obvious potential multibagger!!
Disclosure: I own shares in Aurionpro.
For commercial collaboration, consultation and JV ideas;
you can contact me via zorbayogi9@gmail.com
Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 3 - 4 years or more. Short term volatility is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict.
Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.
Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.
For more info check, http://www.aurionpro.com/
NUMBERS - THE LATEST
Market cap: 459 crores CMP on Day2 Feb2018: Rs 194 BV: 281
Revenue FY17: 638 cr Net profit FY17: 43 cr approx FV: 10
POSITIVES
1. The transformation of the company is evident in the results of the last 2 quarters, where it has managed a operating profit margin of around 17%
2. The company has over 1300 employees and around 29 Fortune 500 customers.
3. Aurionpro sold its global Access Management business to KPMG for around 200 crores.
4. For half year FY2018 the company EBITDA grew by 43% and net profit grew by 76% and the story of transformation has just begun.
INTERESTING INFO
1. Aurionpro which recently sold one of its division to KPMG at approx 200 crores is available at a market cap of around 450 crores.
2. It will be really interesting to see how this 200 CR will be utilized. Common sense and logic tells me a portion would go for retiring debt, one portion to invest in growth areas, one portion as reserves and one portion as a substantial dividend. We need to watch this space.
3. Aurionpro is participated in Money2020 to be held in Las Vegas in Oct 2017
4. Company is winning new orders from diverse set of customers from various geographies. Details can be found in their website
NEGATIVES - POSSIBLE RISKS
1. Any global political or economic shock could impact the share price of this company.
2. As the promoter holding is relatively low for this small cap, this stock could be highly volatile.
MY TAKE
Aurionpro solutions is a company that has undergone a structural transformation. Over a period of 4 years, the management has methodically transformed this company from a software services company to almost a software products company. The positive consequences of this transformation will play out over the next 1 - 3 years.
The focus areas of the company are Enterprise security and Digital innovation. Both these are high growth areas that offer tremendous potential. Apart from this the company is also into various banking, logistics and government solutions. Looking at the future scope and trajectory of this company, it is deeply undervalued, and all set to make higher highs over the coming months and years.
Aurionpro is an obvious potential multibagger!!
Disclosure: I own shares in Aurionpro.
For commercial collaboration, consultation and JV ideas;
you can contact me via zorbayogi9@gmail.com
Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 3 - 4 years or more. Short term volatility is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict.
Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.
Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.
sir,
ReplyDeleteplease have a look at LEEL ELECTRICALS as well. It has recently sold its consumer durable bussiness to Havells around 1550 Crores. Its book value is above 400 and cmp is 270. It's peers which are recently listed DIXON AND AMBER WHO ARE CONTRACT manufactures of white good consumer durable products are trading at very very high PE multiples (above 60 PE). flipkart has recently entered to sell the AC products manufactured by LEEL under the brand MARQ. LINK GIVEN BELOW.. ITS A GREAT BUY at cmp .The company is debt free and cash rich. pls offer your view.
https://economictimes.indiatimes.com/industry/cons-products/durables/flipkart-to-expand-marq-brand-to-launch-acs-and-smart-tvs/articleshow/62459339.cms
Hi Pruthvi,
DeleteOne year back I had taken a look at LEEL. However I could not figure out the scope and potential post the divestment of their consumer business.
So I gave it a pass.
I prefer Aurionpro as the opportunity is quite obvious.
best regards!
Wow Yogi sir,
ReplyDeleteYou started to write your blog again ☺️
So glad to see you back.
This year will definitely be a profitable year to all your blog followers.
Regards,
Good to see your message, Sangeetha!
DeleteWish you a profitable and happy 2018
best regards!
Thanks Yogi ji you are back. Had made sizable profits from your previous recommendation. Happy to see back.
ReplyDeleteMost welcome, Arun.
DeleteWish you good profits in 2018.
cheers!
Excellent Find Yogi. Welcome back.
ReplyDeleteAurionpro Solutions is a High Quality Company. Whatever you were telling about low promotor holding may not hold true because as per my study around 60 percent of the Holdings is in long term Hands along with Reliance Spot Exchange.
This could Trade on the lines of oracle(Product Sales Driven) i.e if the transformation which you are talking about from service company to a product company this will fetch higher multiples. Moreover its a global company ,global company with this approach should trade at a mcap of 1200-1300 cr that is 2.5x from here.They sold a subsidiary for 218Cr, it was accounting for 24% of its total revenues so even on a hawk eye view the whole company should be valued at 900Cr Mcap. Now its very interesting if they show the amount received as profits then EPS will Sky Rocket to 100Rs on a Reasonable 5-6 Multiples(as this is one off profit) also this stock should trade at 500-600 in Medium Term to Long Term.
What i can sence here is they have shedded off service Business to focus on product driven growth and with the profiles on with they are working i think journey for this Potential Mega-Multibagger has just started. Thanks once again for the lead.
Thanks again, Suyog.
DeleteGood thinking!
You have some interesting perspective.
Again, wish you wonderful profits in Aurionpro.
See if you can hold it until 500+
Or atleast 400+
There is a good probability we will see all these levels in 2018.
Btw, if the promoter holding would have been 50% then this stock would not be trading less than 500 and the the levels of volatility would have been much lower.
cheers!
Welcome back yogi...missed u!Thanks for another gem of a find.
ReplyDeleteGood to hear from you, Srijit. Most welcome!
DeleteWish you good profits in 2018.
Cyberinc has product ISLA. This is a revolutionary product. Symantec bought a competitor for almost 300m$. This product can be work much higher if the market for it goes to the level Gartner has projected. market doesn't have idea about this it seems.
ReplyDeleteAbsolutely, I agree.
DeleteIsla is a high potential product. Surely Aurionpro has a bright future ahead.
Wish you good profits!
Pre-IPO Opportunity @ Nazara Technologies
ReplyDeleteWe have a mandate to sale Nazara Technologies Shares (Limited Quantity). Last Traded Price is 770 Rs. Price May change as per demand.
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To Know Potential in this only to be Listed Company in Gaming Space in India Follow Check below Link.
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