Accelya Kale Solutions-Niche & Sticky Business


(Vivek Gautam) #21

CONSOLIDATED RESULTS

There is steady n consistent growth in top line n bottom line after Accelya has taken over which is very positive. ROCE is excellent.

Received rs 30 per share interim dividend today. Now will wait for atleast 10 rs more final dividend. One of the heaviest per share interim dividend received by me. Good going accelya.


(Ravjit Singh Bagga) #22

http://www.hdfcsec.com/Research/ResearchDetails.aspx?report_id=2994849

They have concerns on next year earnings being the same as this year.

Revenues seem lumpy as per the report and earlier mentioned by some boarder.

Overall good company with sound fundamentals and good prospects…


(Vivek Gautam) #23

Accelya shoots up today making all time high. It gives immense satisfaction when ones conviction plays out. Seems process of rerating is on. also spoke to some analysts n investors who are tracking it. With rupee depreciating n recent orders from Indonesia national airlines Garuda n Air Seychelles co is on right track.


(Vivek Gautam) #24

VLS Finance who are one of the savvy investors n whose promoters were once the partners in Dhampur Sugar Mills have taken an initial position of 3 lacs shares in Accelya last qtr.

Incidentally VLS owns nearly 10% stake in Relaxo Footwears since 2001.


(bala) #25

it has taken out the prev high with strong volume. it has run up from 440 to 550 within 4-5 sessions. rupee depreciation must be adding to the bottom line in addition to new clients


(Vivek Gautam) #26

Lot of instl interest in the co is leading to higher price movement it seems.


(Vivek Gautam) #27

Accelya touches a new high of 587 today. As per research house covering the stock there is lot of institutional interest in Accelya now. Any Puneite /Mumbaikar Valuepicker can help with some scuttlebutt on the company please?

There is a video recently uploaded for better understanding of the co.

http://www.youtube.com/watch?v=lREHeC8Hq0o&feature=youtu.be&a


(Ramakrishna) #28

Hi Vivek,

Good video. Thanks for sharing.

Ramakrishna

http://www.youtube.com/watch?v=lREHeC8Hq0o&feature=youtu.be&a Link: http://www.youtube.com/watch?v=lREHeC8Hq0o&feature=youtu.be&a


(Ramakrishna) #29

Board to consider Final Dividend|7/29/2013 10:48:00 AMAccelya Kale Solutions Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on August 07, 2013, inter alia, to consider, the Audited Financial Results for the year ended June 30, 2013 and declaration of final dividend, if any.


(Vivek Gautam) #30

Great news on dividend front from Accelya. On an expected Eps of 55-60 Rs co can fork out substantial final dividend . Company being a product co operating in opex mode doesn’t need much cash n can give large part of profit as dividend ala MNC co tradition. Rupee depreciation will act as a major tailwind.

The scuttlebutt is quite positive on the employee recruitment, new project initiation , institutional interest in this rare IT product succes story from India who are leaders in their segment. Ten opportunity size seems OK. Risks could be the comparatively larger gestation period for product wins n lumpy nature. But mining Accelya existing accounts itself will give healthy business growth irrespective of losing a major client co has been very transparent in declaring.

With excellent ROCE n good opportunity size it seems to be another buy n forget compounding machine IMHO

Discl invested in it since last 1 year.


(Vivek Gautam) #31

Wow final dividend of Rs 40 on top of Rs 30 interim dividend. Eps of Rs 56 this year vs 37 last year.

Good work Accelya.

What are the price targets now ?


(Vivek Gautam) #32

Wow final dividend of Rs 40 on top of Rs 30 interim dividend. Eps of Rs 56 this year vs 37 last year.

Good work Accelya.

What are the price targets now ?


(Shankarnarayan K) #33

Hi Vivek,

What would be the impact on EPS if say one year down the line we find the ruppee at 55.

BR,

Shankar.


(bala) #34

they earned 56 rupees and gave away 70 rupees !!! very interesting.


(Atul Garg) #35

Recently started looking in to this stock. A dividend payout more than 100 definitely will raise eyebrows. What is in the store, time will tell. But Company IS sitting on huge cash and it doesn’t have any capex plans for couple years down the line. They have already exercised some excess cash in shares buyback. Rest they are giving back to share holders.

What needs to be seen is the revenue increase from last quarter is nill, though I was expecting revenues from newly added client bmi in feb time frame. Either they are not much or they haven’t started tickling in yet. Given the question mark on revenues from bmi, need to see how much air seychelles and garuda will add to kitty. But looks like Accleya should be fine and able to increase revenues reasonably well.

what will keep driving old customer back and add new customer, need to be understood better.Any industry experts ??


(sandeep) #36

Hi All,

Yes this weird scenario is applicable to Indiabulls securities as well. Their dividend payout ratio also turns out to be more than 100%. Not sure how they are managing to give these hefty dividends that are more than the annual eps. Experts throw your past experiences on these type of scripts.


(Atul Garg) #37

Sandeep,

It would be hard to generalise this. But simply put if a company doesn’t need cash to grow revenues, it makes sense to unlock the capital tied up in investments and all. In case of accelya, new promotors bought this company for odd 170/- a share. With this dividend payout, they will get their money back in another 2 years and they can use it better rather than miniscule returns on the capital locked in investments.


(Ravjit Singh Bagga) #38

)- There is an ET news of parent Accelya for sale… TCS, WNS and Genpact are buyers as per news…

)- Can a corollary be made with MPS being discussed on other thread where the promoters are declaring divdend to take out the buying cost… After accelya took over there is more than 100 Rs dividend in last 2 yrs including the current declaration of 40 rs…I guess 170 was the open offer price. their actual buying for Accelya was still less…

)- Business wise looks good as its a niche business with strong domain knowledge of airlines… I guess it took years to build and fruits are to be reaped know…I am not too sure how much they could increase in terms of volumes of work in revenues this year… Earlier last 10-12 yrs kale revenues look lumpy with revenues growing every 2yrs…


(Vivek Gautam) #39

The news of chequers capital intending to selling out Accelya the Spanish parent of Accelya Kale is corroborated by heavy dividend of Rs 70 per share announced even when the Eps I’d only 56 . The same is being taken by depleting the reserves a little.

Unlike other cos Kale is a rare success story in product space from India. The company has developed a robust suite of products in revenue accounting n BI space for airlines industry over the period of last 25 years. what this means that the co doesn’t need to have vast army of developers for other IT services cos n a big amount of cash is generated which is not needed much n is being distributed liberally by new MNC management.

Coming to valuation it’s still reasonably priced at almost 10 PE after deducting 40 Rs dividend from CMP of 600 Rs. The Eps has grown from 26 to 56 in this financial year. The strategy of Kale mining Accelya existing clients base of 200 in airlines sector is working beautifully.


(Vivek Gautam) #40

Further several Indian IT cos want to move away from linear model to non linear model being followed by Accelya. Acquiring it may give a head start in fast developing Travel space to them. The asking price of USD 350 million imply a market cap of 2100 Cr vs current market cap of 900 crore. So scope is still there for further upward price movement.

Chequers capital have an enviable track record of nurturing the company taking it to next orbit. They have taken Accelya to next level after buying it from ADP in 2007.

Even otherwise valuations of Accelyas is still reasonable opportunity size still large ROCe very decent .