Infinite Computer Solutions (India) Ltd based in Bangaluru specializes in the provision of application development and maintenance services (ADM) which contributes to about 60% of its total revenue, the rest 40% is taken care of by IP (intellectual property) based solutions and services that involve remote infrastructure management (RIM).
The company brings good faith in the investor with its impressive client profile like Verizon, ACS, Fujitsu, IBM and Motorola which it has also been able to keep with itself in the past. These clients contribute to about 31% of the total revenue of the company that reflects that the client base is increasing and there is less client concentration which eliminates risk factor up to a significant level.
The major risk factors to look out for include a great geographic concentration at about 80% which is concentrated in USA. Expect that the RIM segment should contribute the most in the growth drive. Looking at the present scenario we expect the revenues of the company to almost 24% in the next two years or so to which the major contributor shall be the inorganic growth. We see that the PAT margins are range bound presently but we are positive on the stock because of the enhancement in its product mix.
Bell the Bull says: The stock is presently hovering within the Rs 120 – 150 price band but we expect it to be fairly priced at around Rs.250-260 as we now stand and look at the earning potential of the company.