“Best Hospital in the World”, does IoT, Blockchain, AI, Big Data…most likely they choose a Cloud implementation…
CloudEz:
Summary: In simple layman’s terms, This framework provides lifesciences industry with platform that meets most of industry’s security related compliances. e.g. Take Zoho, Freshdesk. What they do is there are certain business processes that are common in all businesses. They provide readymade applications deployed in cloud. In case of Zoho and freshdesk those are obvious applications but having no background in lifescinces industry, i cannot figure out. But there will be certain processes which are common across lifesciences industry and CloudEz platform is providing that infrastructure on top of Microsoft Azure. Please feel free to elaborate if you have deep knowledge in this domain.
I think this technology was part of fugen companty they acuired for $7.5 million dollars. Its CEO at that time is still working with 8k miles as COO. https://www.linkedin.com/in/lenakannappan/
EzIAM :
From comapny webisite “Next generation user life cycle management platform that gives you the flexibility and scalability to meet your business needs without compromising on security and convenience.”. Can’t figure out with my current technical knowledge what is this. Further googling I found these keywords assocaited with many comapnies. Many other companies are also having similar products over cloud. https://www.ca.com/us/why-ca.html?intcmp=headernav
Now main question is are these technologies worth 140 Cr that they have shown in this quarterly result?? If we see valuations of Freshdesk, Zoho, Ca technologies which also provide similar cloud products but in different domain. Then it seems it is worth that muchamount. Also cloudEz technology only is worth 50cr which they acquired from Fugen considering that is not obsolete and only enhanced.
BlockChain Platform:
They have shown this platform worth 50cr.
My knowledge about blockchain: Blockchain is nothing but a immutable distributed ledger. Means once you add any entry into that ledger, it cannot be reversed.
Its usecases in lifesciences industry is listed in this link http://www.nortonrosefulbright.com/knowledge/publications/149475/blockchain-technology-application-in-life-sciences-and-healthcare-sectors
Now main question is are these technologies worth 50 Cr that they have shown in this quarterly result? I think yes. Because even if you see very basic blockchain related startups they secured multi million dollar funding. Yes this is not comparable . But definiely you need to spend money to build these platforms. Cost is very high as talent pool is small. It is just a guess.
acuisition of cornerstone:
I think this is enough only “Cornerstone Advisors Group, LLC is a privately held firm based in Georgetown, Connecticut. Cornerstone Advisors Group provides executive level Information Technology Advisory, Consulting, and Implementation services to the healthcare provider industry.”
In order to monetize their above products, they acquired this. Value of acquisition is shown in balance sheet.
Goodwill :
I never understood its meaning.
So out of total 350Cr of intangibles i think 250 Cr are easily justifiable.
84 Days Debtor days: CEO in latest interview himself said large clients pay after 90 -120 days.
Summary of this whole thing:
Whatever cash they are generating is flowing into intangibles due to acuiring new comapanies. They are looking for growth. But they seem valuable assets. High debtor days CEO himself clarified. If CEO is saying truth, deloitte is auditing correctly and industry is giving true valuation to other cloud related startups, then this comapny is a steal at this point. we can say any listed growth comapny fraud by taking assumptions that management, auditors are lying; any day. Yes, Cash flow is king, but not true for most of technology related startups these days. They want to acquire masrket share. Or may be market knows better than me. But i am opening this thing for debate. Will it be a multibagger from here based on Respected Ashish Chugh’s statemets in this link. https://www.moneycontrol.com/news/business/markets/ashish-chugh-how-to-spot-multibaggers-and-when-to-exit-a-stock-2247797.html (Comapnies hammered due to management perception in this case. + short term negatives in balance sheet) or next vakrangee, pc. It can go both ways. But one need to decide. That’s what will separate him from other ones.
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One more point, they may need to raise some money considering immediate balance sheet and acquisition of new comapny. But i think kr lenge yaar. Funds ka jugaad vo kr lenge, if needed . 
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Offtopic - In addition to your point of view, always nice to learn new words from your posts.
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8k miles CFO awarded:
Applauding the winners was a big gathering comprising the who’s who of the financial world. Among the companies that bagged awards were Marico, Mahanagar Gas, 8K Miles Software Services, Hindustan Media Ventures, Icra, Castrol, Alembic Pharmaceuticals, Eicher Motors, L&T Infotech, Dhanuka Agritech, Indraprastha Gas, Future Supply Chain Solutions and EIH Associated Hotels.
The winners had all been selected by a jury headed by S Ramadorai, former chairman of TCS, Paresh Sukthankar, deputy managing director of HDFC Bank, Amit Chandra, managing director of Bain Capital, Pradip Shah, chairman of IndAsia Fund Advisors and Ajay Srinivasan, CEO, Aditya Birla Capital. The number crunching had been done by a team at Deloitte Consulting which sifted through thousands of companies, across the manufacturing and services sectors to come up with a shortlist.
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The only red(dish)-flag (other issues pointed out seem more like red-herrings) to me is the hard sell in the corp presentation.
There should be no excuse to call, bots as BOTs and BoTs. 
Bots (short for ROBOTS) have been around since long, long time. The terminology originated when (viz. ‘spiders’, ‘crawlers’) were used to Index (create cache for web search, etc.) the web, web-sites have a robots.txt with some instructions to where to look and what is not to be indexed.
So bots were programs which would look-up DNS entries and navigate to pages and do a text analysis/word frequency count etc, further follow links from there and keep reporting back to the program launcher the data gathered.
So, a bot is just a program, a set of instructions that does something. Nothing new in that, but the context is usually about discovery and analysis of data to produce some useful result.
Checked the various Platform names with the US Trademarks registry as suggested by @diffsoft, some are there (which means they seem popular) but none registered by 8K miles. I do not see this as a problem since they are not doing B2C business that the customer can be confused between real and fake branding like, coke. I do not see anywhere claims by 8k miles of the names being registered trademarks.
Well, as long as they keep getting customers with the hard-sell. 
Disc: Invested.
The current generation of bots are not that mundane and simple. The bots 8k is referring to are service bots that use AI based NLP (natural language processing) engines that can understand english conversations and respond accordingly. So the bot effectively replaces user touchpoints that currently require humans. I have program managed such a bot development in the human resources function of a client and it has helped them scale headcount without adding hr headcount.
This is a very effective use of bots that enables the organisation to cut expenses by hiring lesser people or scale with lesser cost increases.
However, there is no AI model today that can chain together a cohesive response in english language that maintains context and meaning. All the bot responses are today hardcoded as conversation trees. This ability to stitch together a response by itself is the next barrier in cognitive computing. IBM is making enormous strides on this front today…
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Sorry for late reply. I have not looked at these transaction details pertaining to subsidiaries or acquisitions. So I cannot comment on it.
For the IPs, its always true that it may be used to mask the OpEx,as you mentioned. But this is industry phenomena. There is never 100% utilization of resources. If company can convert non-utilization / bench into the assets its really an advantage. However this is true when these assets can be used in true sense to fetch new business or to reduce cost for new deals delivery. And if so, it talks a lot about company vision. If what 8K has reported in Q1 results about win of new Blockchain client is true, this shows the value of these assets. Also they have changed the depreciation timeframe of these assets from 15 years to 5 years as they reported (which I feel is a prudent move - 15 years of such assets is non-realistic life, in fact 5 years may also prove to be bit long).
This cracked me up big time. Unfortunately, the jokes and funnies thread started by @diffsoft isn’t around anymore. Not sure what happened there. This is the closest thread where its relevant.
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That was closed because Mods felt that it may get out of hand, and they know better. It was good while it lasted!!!
I am new to blockchain and Barrons had a cover story this week that I liked:
So you may want to spare them, else my subscription will have to be written off 
Cheers,
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Does anybody have access to the march 18 cash flow statement. Im not able to find it anywhere…
You might as well write it off 
The Bank for International Settlements, which is also known as the central bank of central banks…
“Put in the simplest terms, the quest for decentralised trust has quickly become an environmental disaster.”
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You can make one yourself from the balance sheet. It’s pretty simple.
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My first message on this thread. I am not adding any analysis. Just two first hand experience.
Incident 1 - I talked with two employees 1 year back through LinkdIn. Seems to me that these people worked in actual cloud computing related tech. So, no doubt about what they are doing.
Incident 2 - I checked two websites - cornerstone advisory - This website design seems to me 10 years old stuff. An US based entity working in cutting edge technology does not have a mobile compatible website ! I really find it difficult to believe.
Recently I came across “8khealthedge.com” which is a separate domain of 8k miles to showcase blockchain capability of the company. When I opened the website in smart phone and try to access the mobile breadcrumbs menu from top, I found the background is black and the font is in blue. Again worst user experience in mobile. Needless to say, the new site is thin in information. They are showing this platform as 56 crore in the last Q intangible asset and to me it seems that they spent 5000 Rs to develop the website to market this product. Very bad.
Yesterday 8K miles announce some Pharma client win through twitter and I replied back on that tweet asking this two questions.
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why the cornerstone advisory website looks like a non compliant design in today’s highly responsive mobile UX ?
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Why the newly launched 8khealthedge.com has such a bad mobile UX ? ( menu design seems utterly novice & unprofessional )
I asked two highly relevant questions and today I found the original tweet is deleted and they tweeted the same update fresh today morning.
I am not rockstar on balancesheet & do not have huge knowledge like many boarders here. But it seems to me that the top management is not good. They are not professional and constantly trying to hide information from the minority stakeholders.
They can always answer back to the tweet saying something positive. But they just deleted it as I pointed true technical issues and asked the hard questions.
Regards
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Welcome Samrat, your first message ever in VP it seems!
I think you missed posting this link:
Correction: It is not Advisory, as you have mentioned, but Advisors!
Yes Vikas. My first message on VP.
Disclaimer : Invested in 8K and still holding.
Interesting way to look at it. It doesn’t matter whether or not you are great in analysing balance sheet etc. Too much knowledge without a knowledge of its limitations can deceive one to trading common sense for heavy intellectualisation. The outcome is generally negative for money making.
That is best said by Buffett that what matters in investing is temperament and not IQ beyond a point.
When things don’t add up like in case of 8K Miles, they don’t add up from many angles, some financially, some like you mention, some like @phreakv6 mentions. Each is shaped by our experience. Let’s see what the FY 18 annual report of the fim throws up.
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I’ve started using the simpleginzu valuation model from Ashwath Damodaran to value 8K miles. Below is the set of assumption I made for the model. Let me know your comments on these
Please validate my assumptions below, in particular, the growth rate assumptions. Risk-free rate and cost of capital are all US numbers because the operations are primarily US-based
- All financials are picked from the recent filings and conversion rate of 70/$ used. This is mostly because the excel is based on $
- Compounded annual revenue growth rate over next 5 years = 22%
- Target pre-tax operating margin (EBIT as % of sales in year 10) = 28%
- Year of convergence = 10
- Sales to capital ratio (for computing reinvestment) = 1.57
- Risk free rate = 2.85% (US 10y T bond)
- Cost of Capital = 9.98% (US technology sectory WACC)
This is what I get… (Estimate Price Per share = 1067.5 INR)
- Terminal cash flow $69,794,062.75
- Terminal cost of capital 7.35%
- Terminal value $1,550,979,172.30
- PV(Terminal value) $647,735,358.80
- PV (CF over next 10 years) $310,357,573.69
- Sum of PV $958,092,932.49
- Probability of failure = 20.00%
- Proceeds if firm fails = $479,046,466.24
- Value of operating assets = $862,283,639.24
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- Debt $11,402,857.14
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- Minority interests $387,200,000.00
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- Cash $1,570,000.00
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- Non-operating assets $-
- Value of equity $465,250,782.09
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- Value of options $0.00
- Value of equity in common stock $465,250,782.09
- Number of shares 30,517,605.00
- Estimated value /share $15.25
- Price $4.28
- Price as % of value 28.07%
AGM has been announced for Sept 29. I think it will a good forum to ask all the questions on accounting practices face to face. Although we may not get all the answers, we will have management response on record.
Please let me know if anyone is interested in attending. We can also prepare a comprehensive list of questions to ask.
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