Nirmal Bang
http://www.moneycontrol.com/mccode/news/article/news_article.php?autono=301773
Buy Bartronics India, target Rs 440: Nirmal Bang 2007-09-07 08:13:56 Source : Moneycontrol.com Email Print Version
Nirmal Bang Research is bullish on Bartronics India and has maintained buy rating on the stock with target of Rs 440 with 12-month prespective.
Nirmal Bang research report on Bartonics India
Bartronics India (BIL), promoted by Mr.Sudhir Rao is a Hyderabad based company incorporated in 1990 as Super bar Tronics Pvt.Ltd and later became Public Ltd. company in 1995 in its current name of Bartronics India (BIL)
BIL is pioneer in introducing Automatic Identification and Data Collection (AIDC) technologies like Barcoding, Radio Frequency Identification Device (RFID) and Smart Card which has manifold application in Manufacturing, Service and Retail Industry.
Investment Argument
* BIL has near Monopoly position in the Industry as there are hardly any competitor in RFID and AIDC products. * The Government of India favors Foreign Direct Investment (FDI) in retail sector. * BIL is at an advantageous position to meet the growing demands of retail sector with its experience and dominant position. * BIL is India’s first and only Smart Card manufacturer as of now, having 100% EOU status from Govt. Of India. * BIL is ISO 9001 and 2000 certified company and all the card manufactured conforms to ISO 7816 standard. * BIL has tied up with a German company Giesecke and Devrient (G&D),for 70% of its Smart Card production capacity till 2 years i.e. July 2009. * Strong Order Book Position of Rs.196 crore for FY08 and Rs.250 crore for FY09.
Business Outlook & Valuation:
BIL robust performance driven by strong growth in its product has generated Topline growth for FY07 at 119% over previous years 60% in FY06 and Bottom line growth at 152% over the previous years FY06. Going ahead, we expect revenue will grow by 85% Y-o-Y and Net Margins of 19 - 22% will be stable because of only player in RFID and Smart Card with fully backward integration. We recommend buy rating with Price target of Rs.440 in 12 months period.
Thanks siva
