I am not sure whats the deal in Vakrangee software.
Figure this. The company's market capitalization is @ Rs.50 odd crores. Almost nil debt. And the company has declared an operating profit of about 100 odd crores last year. Whats more the company has an operating income of more than 50 crores in the six months ending Sep.30 2008. They also hold an investment worth Rs. 50 odd crores.
I understand there is no such thing as a risk-less investment but the odds of losing any in shares like Vakranjee should be way below any other investments that i can think of.
3 comments:
If you are from Mumbai or Delhi area can you go to there office and have first hand feel ..
very surprising .. I have posted some comments on it @
http://www.theequitydesk.com/forum/forum_posts.asp?TID=1618&PN=10
Bhupesh
I am in Chennai.
From what i understand there is still substantial shareholding by FII in vakrangee...
but its valuation beats me. recently the PE has gone below 1. Its hard to believe the market would not even pay a years' earnings as the price of the share.
Last quarter' earning were disappointment, specially when management said most of the work is from government and they are recession proof.
Problem with such small companies is
there is not much information in public.
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