The up & down moves happen bcoz of low volumes. Hence, I thought of averaging up based on business prospects & growth drivers mentioned above. The corp action that happened was Quess acquiring its parent Conneqt 100%. However, I blv Quess vl use Allsec Tech to upstream dividends & develop related products under Allsec Tech( I got this last bit frm latest con-call whr the product in beta stage was demonstrated to thr existing customers)
Yes, they are developing MSME HRMS product. Lets see how the adoption will be in the market.
As far as corp action goes, I could only speculate what might happen. If they merge it using Quess stock, it could be a bonus for investors in short term. Even otherwise, Allsec is a good cash generating machine with no need for capex.
1 Like
Corp action : - Conneqt acquisiton is completed :-
For Allsec, they mentioned no plans in the last con-call, bt as u mentioned, speculation always remains & can become a consideration sooner or later.
This was the starting point of my initiating the discussion & reviving this thread. Once this part of the analysis is established, only 2 questions remain - wat to pay for this assuming zero growth? & wat are the sustainable growth drivers being put in place by the mgmt?
As an addendum, more dividends are expected as they transferred the cash from Manilla subsidiary this qtr.( Yes they had to pay tax on it which resulted in one-time qtrly loss)
Disclosure :- As above
@shardhr : My logic of Quess acquiring 100% stake in Allsec is so they can get access to Allsec’s cash pot. I guess it is wishful thinking from my side.
Agree that HRMS is a good business. In my organization, we use HGS for HRMS. Its not a great product from tech point of view. But the payroll vendor is pretty sticky and as long as the technology is good enough to have all the processes automated, HR teams will not even look for an alternative. Organic growth will always happen when their clients onboard new employees. The other growth lever is acquiring new clients. They have been having good client addition over last 1-2 years. They are also targeting Manila & Middle east regions for expansion. SAAS based MSME HRMS solution could be another growth driver.
3 Likes
AGM21
-
Cash on balance sheet - Manilla dividend is in this direction. Acquisition - no deals on the table
-
Multi year contracts on both DBS and HRO business, majority revenue is repeatable
-
Q4 FY21 - exit growth rate of 12%
-
HRO
-
Seeing good momentum in HRO business - both headcount growth and new customers side
-
SME HRO product is in beta, testing with friendly customers. Product development will continue till end of year - to be at par with competition and differentiation work will continue thereafter.
-
-
DBS
-
Margin variability is due to change in business mix between US and India, individual business segment margins have not moved much
-
DBS US - Sept/Oct onwards - will start seeing revenues from NA DBS business, seeing good momentum. Have good pipeline and also quality is also improving. Wins after a long time in DBS US.
-
Insurance DBS - leveraging strength of Quess → acquired Fairfax’s insurance technology business, joint development and offering in Quess. Just a quarter old segment
-
DBS domestic - do not actively look for growth in domestic, domestic book continues to grow. Will maintain current run rate in India. Most of new business is through referrals. Focus on North America DBS.
-
4 Likes
I see there is no update on this thread. But Quess has made a merger announcement with Allsec Tech. The share swap ratio is at 74 Quess shares for every 100 shares of Allsec Tech. The ratio is neutral and very close to market prices of both stocks. So, I don’t see any advantage for Allsec Tech shareholders. From now on, Allsec share price could track Quess share price until the merger completes.
Just to liven up this thread.
Any one has any update on this name ?