Ybrant Digital is a digital media marketing company with offices in over 20 countries. The potential market for this business is global. Ybrant is one of a kind company on the indian stock market. The digital channels on which advertising and marketing solutions are offered are Display, Social, Mobile, Video and Search. For more info check, http://www.ybrantdigital.com
The future prospects and growth of this company is directly related to the increased usage of the internet and its enhanced influence across the world. Increased adaptation of smart phones and mobile applications has a positive impact and directly benefits the company.
PRESENT DAY NUMBERS
CMP on Day30 Mar2014: Rs 15.96 Market cap: 760 crores BV: 21 FV: 2
Debt: Net debt 160 cr including working capital of 100 cr (as on Dec 2013)
(From audited consolidated financial results FY2013)
Revenue: 1601 cr (FY12 1263 cr) Net profit: 51 cr (FY12 191 cr) EPS: 1.07 (EPS FY12: 4.03)
(From unaudited consolidated financial results Q3FY2013)
Revenue Q3FY14: 462 cr (Q3FY12 423 cr) Net profit: 66 cr (Q3FY12 60 cr) EPS: 1.39
BRIEF HISTORY
The company was originally incorporated in June 2000 as Ybrant Technologies Inc. Name changed to 'Ybrant Digital' in May 2008. The company then had a reverse merger with LGS Global Ltd, a BSE listed company in an all-stock transaction and thereby established its presence in the indian stock market in the year 2012.
MULTIBAGGER POTENTIAL
Strategic acquisitions:
1. Ybrant Digital acquires Serbia based email marketing platform 'Volo MP' and US based 'Medios One' in the year 2006
2. Acquires US based online ad network company 'Ad Dynamix' for USD 10 million and Israel based 'Oridian' for USD 13 million in 2007
3. Further acquires Argentina company 'Dream Ad' and Australian company 'Max Interactive' in all cash deals in 2009. Max Interactive is strong in Asia Pacific.
4. Acquires US based Lycos Inc for USD 36 million in the year 2010, resulting in a wholly owned subsidiary. Lycos, headquartered in Massachusetts US, is a prominent internet brand with diverse businesses such as Gamesville.com, Tripod.com, HotBot.com and Angelfire.com
5. Acquires minority stake in Israel based 'Web 3.0'in April 2011
6. The company acquires PriceGrabber, LowerMyBills and ClassesUSA.com owned by UK based Experian for USD 175 million in the year 2012
MY TAKE
Digital revolution is here to stay. Internet, Search, Social media, Web portals, games and web applications will find increased usage all across the world. Increased adaptation and multitude of apps will keep smart phone and mobile phone usage on the growth path. All these will compel the corporations and companies across the world to advertise on the internet and mobile networks. The wallet share for advertising and marketing revenue by the new media will continue to increase in the coming years.
Due to the multitude of acquisitions over the last few years, and a foothold in diverse and significant space of Digital marketing and advertising; Ybrant Digital is well positioned to grow its revenues across multiple geographies and thereby increase its margins and profitability.
A high potential multibagger!!
Disclosure: Ybrant Digital is a part of my core holdings (and I intend to add more)
The future prospects and growth of this company is directly related to the increased usage of the internet and its enhanced influence across the world. Increased adaptation of smart phones and mobile applications has a positive impact and directly benefits the company.
PRESENT DAY NUMBERS
CMP on Day30 Mar2014: Rs 15.96 Market cap: 760 crores BV: 21 FV: 2
Debt: Net debt 160 cr including working capital of 100 cr (as on Dec 2013)
(From audited consolidated financial results FY2013)
Revenue: 1601 cr (FY12 1263 cr) Net profit: 51 cr (FY12 191 cr) EPS: 1.07 (EPS FY12: 4.03)
(From unaudited consolidated financial results Q3FY2013)
Revenue Q3FY14: 462 cr (Q3FY12 423 cr) Net profit: 66 cr (Q3FY12 60 cr) EPS: 1.39
BRIEF HISTORY
The company was originally incorporated in June 2000 as Ybrant Technologies Inc. Name changed to 'Ybrant Digital' in May 2008. The company then had a reverse merger with LGS Global Ltd, a BSE listed company in an all-stock transaction and thereby established its presence in the indian stock market in the year 2012.
MULTIBAGGER POTENTIAL
Strategic acquisitions:
1. Ybrant Digital acquires Serbia based email marketing platform 'Volo MP' and US based 'Medios One' in the year 2006
2. Acquires US based online ad network company 'Ad Dynamix' for USD 10 million and Israel based 'Oridian' for USD 13 million in 2007
3. Further acquires Argentina company 'Dream Ad' and Australian company 'Max Interactive' in all cash deals in 2009. Max Interactive is strong in Asia Pacific.
4. Acquires US based Lycos Inc for USD 36 million in the year 2010, resulting in a wholly owned subsidiary. Lycos, headquartered in Massachusetts US, is a prominent internet brand with diverse businesses such as Gamesville.com, Tripod.com, HotBot.com and Angelfire.com
5. Acquires minority stake in Israel based 'Web 3.0'in April 2011
6. The company acquires PriceGrabber, LowerMyBills and ClassesUSA.com owned by UK based Experian for USD 175 million in the year 2012
MY TAKE
Digital revolution is here to stay. Internet, Search, Social media, Web portals, games and web applications will find increased usage all across the world. Increased adaptation and multitude of apps will keep smart phone and mobile phone usage on the growth path. All these will compel the corporations and companies across the world to advertise on the internet and mobile networks. The wallet share for advertising and marketing revenue by the new media will continue to increase in the coming years.
Due to the multitude of acquisitions over the last few years, and a foothold in diverse and significant space of Digital marketing and advertising; Ybrant Digital is well positioned to grow its revenues across multiple geographies and thereby increase its margins and profitability.
A high potential multibagger!!
Disclosure: Ybrant Digital is a part of my core holdings (and I intend to add more)
Hi Yogi Sir!
ReplyDeleteAt what level to invest Ybrant Digital is good, what is the taget price of Ybrant Digital.
Hi Ram Singh,
ReplyDeleteDigital marketing is a global business and the scope for this is huge. For Ybrant, over 50% of their revenues come from USA. The rest is spread across the world.
For potential multibagger stocks, it is prudent not to give targets. By doing so, we will be limiting our profits. For most of the stocks covered in my blog, Sky is the limit.
How ever just to give you an idea and potential range for Ybrant, I will not be surprised to see this stock at 60 - 80 rupees in the next 18 - 24 months.
Below 20 is always good for buying and accumulation on dips will be a smart strategy.
Best Regards!!
Sir i have just found this blog and bought most of the scripts. All the recomendations are very good... waiting for new stocks from you which will become multibaggers......
ReplyDeleteMy friend,
DeleteThe key to getting success in multibaggers (meaning, making profits in the range of 100 - 500%) is to buy a good quality company at a very low price, and waiting for it to mature into a profitable investment.
This will take time. How much? Very difficult to tell.
In general 2 - 4 years.
So rather than investing in too many stocks, pick up 2 - 4 companies and build substantial holdings in them by buying them in small chunks.
By following this strategy you can become very rich over a period of time.
Best Regards!!
ok... sir... i have invested in all your recomendation but currently having small chunks.... will increase the holding once those go down. I also prefer long term investment horizon... so will invest much..... My current holding and price as below:
ReplyDeletePCL - 1300 @ 1.2
Marksans - 110 @22
Trigyn - 138 @28
Ybrand - 275@16
IBPower - 200 @8
Onmobile - 150@32.
Please suggest on which i can put more also please suggest a level.....
Deba, your long term stock basket looks good. Entry levels are fine in most cases. You can continue to add on dips. (it is quite probable that you will get some dips in the next 1 - 2 months; till then hold cash in bank).
DeleteFor your long term basket, focus on 4 - 5 stocks. Try and increase your investment in each stock to at least 25,000 rupees. Then you can target 50,000. If you have too many stocks, the impacts of profits will be diluted. Hope you understand this point.
Only one suggested change:
When ever there is a spike (rise in price); move out of Onmobile and move into Firstsource solutions. There are too many uncertainties surrounding Onmobile, where as prospects for Firstsource look very stable and robust.
Best regards!!
Sir can you please provide an update on yearly result of YD as EPS is in negative and it is going down by 10% circuit.
ReplyDeleteDeba my friend, To be successful in investment, you should learn to control your emotions. If you panic it will not help. Most decisions made in panic (and by following the herd) will loose you money.
DeleteLong term investment is not T20. It is like test cricket. You need patience, conviction, discipline, focus and independent thinking.
If you are convinced about the long term (2 - 5 years) prospects of Ybrant then there is no need to panic. In fact I bought 1000 shares today. Next week if it goes further down, I will buy more.
I can only share knowledge and my views. You need to make your own decisions.
Best Regards!!
Thanks a lot sir ... i will also buy it in a staggered manner and will keep at least for 2-3 years in my long term portfolio......hope will surely gain.....
DeleteUser Actions
ReplyDeleteFollowing
Himanshu Gupta
@Tradersschoice
Management of Ybrant Digital : Listing on overseas exchanges is an option ... Stock has Moved from 2.50 to 61.50 in Last 1 year PUMP & DUMP
i booked partial profits and kept the free of cost shares. is it wise to exit at this level and re enter at lower levels?
ReplyDeleteVenkat, I would not buy Ybrant, Marksans and Morepen at current levels.
DeleteRegards!!
Hello Sir,
ReplyDeleteWhat is your current view on lycos.. trading @18.65 rupees
The stock is where it was before two years. What is your current view on this stock????
ReplyDelete