Subscribe to Dhanus Tech with high risk, high return status: Networth
Networth Stock Broking has recommended subscribing to the intial public issue of Dhanus Technologies with a high risk, high return status.
By INDIATIMES NEWS NETWORK |
MUMBAI: Networth Stock Broking has recommended subscribing to the intial public issue of Dhanus Technologies with a high risk, high return status.
The initial public offering of the company opened on Monday in the price band of Rs 280-295. The issue closes Wednesday.
“Dhanus Technologies is valued at 21.5 times (on diluted equity) its trailing twelve months earnings per share of Rs 13.7. The company will have to maintain its high growth on an increasing base sustaining its margins at 33 per cent to justify the price commanded,” the brokerage report said.
The company’s topline grew at compounded annual growth returns of 119 per cent to Rs 31.52 crore from Rs 4.7 crore. Net profit grew at compounded annual growth returns of 129 per cent in the same period.
Its operating margins have decreased from 40 per cent in 2005-06 to 33 per cent in 2006-07, the report adds.
Dhanus Technologies, a communications services company, deals in calling cards and teleservices. It recently developed a service called Fleetrac to be used logistic operators.
Its customer base increased to 4.68 lakh cards in 2006-07 (Apr-Mar) from 1.68 lakh global calling cards in 2004-05. The segment revenues have grown to Rs 50.3 crore in 2006-07 from Rs 23.1 crore in 2005-06.
Its software segment has grown to Rs 31.5 crore in 2006-07 from Rs.8.5 crore in 2005-06. The operating margin in this segment is around 47 per cent in 2006-07 (Apr-Mar).
The initial public offering of the company opened on Monday in the price band of Rs 280-295. The issue closes Wednesday.
“Dhanus Technologies is valued at 21.5 times (on diluted equity) its trailing twelve months earnings per share of Rs 13.7. The company will have to maintain its high growth on an increasing base sustaining its margins at 33 per cent to justify the price commanded,” the brokerage report said.
The company’s topline grew at compounded annual growth returns of 119 per cent to Rs 31.52 crore from Rs 4.7 crore. Net profit grew at compounded annual growth returns of 129 per cent in the same period.
Its operating margins have decreased from 40 per cent in 2005-06 to 33 per cent in 2006-07, the report adds.
Dhanus Technologies, a communications services company, deals in calling cards and teleservices. It recently developed a service called Fleetrac to be used logistic operators.
ADVERTISEMENT
Its customer base increased to 4.68 lakh cards in 2006-07 (Apr-Mar) from 1.68 lakh global calling cards in 2004-05. The segment revenues have grown to Rs 50.3 crore in 2006-07 from Rs 23.1 crore in 2005-06.
Its software segment has grown to Rs 31.5 crore in 2006-07 from Rs.8.5 crore in 2005-06. The operating margin in this segment is around 47 per cent in 2006-07 (Apr-Mar).
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
