Discussion on SMAC stocks


(Arun Shah) #22

I think the way to look at SMAC stocks is to look at the growth in the cloud infrastructure companies - Amazon, Microsoft, etc.

The cloud infrastructure of these companies are growing at more than 50-70% for past couple of years. This means that more and more companies are migrating to cloud infrastructure.

Now, we can definitely trust the numbers of Amazon, Microsoft. If cloud infra companies are showing such strong growth, then the companies that help other companies to migrate to cloud infra should also be growing at similar proportions.

The only question is how long this high growth will last. Like with every technology fad, this one will also taper and valuations of all companies will return to normalized levels.

Here is one recent article that talks about different scenarios for future growth of Amazon cloud services.
http://www.nextplatform.com/2016/02/01/how-long-can-aws-keep-climbing-its-steep-growth-curve/


#23

TCS results confirm that cloud/digital segment if one of the fastest growing and they are getting transformational deals as well.


(Vidur Chhabra) #24

An interesting video which predicts the inevitable and disruptive changes that future technologies such as artificial intelligence and related to that SMAC and IOT will bring about in the near future


(rvetri) #25

Hello friends. My 2 cents… No one knows which company will win in digital technologies. Better to invest in Most Nasdaq 100 ETF traded in stock exchanges. The fund buys shares of Nsadaq listed tech companies like Google, Apple, Twitter, FB etc. We can buy in Rs. And US$ appreciation over a long term is a decent upside in addition to the stock price upside. :point_up::raised_hands::grin:


(dr mehul shah) #26

iifl
Rail Ministry’s ERP Project will be the world’s largest IT project: Suresh Prabhu
India Infoline News Service | Mumbai | May 15, 2016 09:17 IST
Suresh Prabhu, Union Minister for Railways announced slew of initiatives taken by his ministry to revamp and modernize Indian Railways

A+ a-    0

‘Implementation of effective technological solutions can unlock the true potential of India’s transport & logistics sector’ was the underlying statement at the launch event of Association of MSMEs in Information Technology (AIM-IT) in the financial capital earlier today.
AIM-IT which is India’s first sectoral organisation for Medium, Small and Micro IT enterprises (MSMEs) was founded by well-known technocrat Mr Vinit Goenka in 2015. The association was set up with an aim of representing, advocating and promoting interests of IT-MSMEs to ensure economic and technological advancement of the country.
The event theme – ‘Challenges and Opportunities of Modernising Indian Railways through implementation of IT’ saw participation from all key stakeholders of the sector including, central & state govt ministers, bureaucrats, IT and logistic companies, start-ups, innovators, and policy makers. Riveting discussions were held on various important subjects such as, Role of MSME companies in Railways, Shaping the future of Smart of Railways, ‘Internet of Things and Indian Railways, and ‘Smart Cities’: Smarter Roads - Smarter Transport.
Addressing the audience, Suresh Prabhu, Union Minister for Railways announced slew of initiatives taken by his ministry to revamp and modernize Indian Railways. He remarked that the ERP project undertaken by Indian Railways is the largest such IT project undertaken by any country. Speaking on the need to support indigenous IT solutions, the honourable minister said, “The Rail Ministry has started a special fund of Rs 50 crore to support IT companies coming up with innovative solutions for Railways. We are looking for solutions in critical areas such as customer interface and also IT security. Cyber Security is of utmost importance to us”
While speaking on the importance of including IT-MSMEs in building and implementation of technology in infra projects by the Government, Mr Vinit Goenka, founder chairman of AIMIT said, “India is the fourth largest base for new businesses in the world and home to over 3,100 tech start-ups. It is time that Govt taps into these new, technology-driven companies to help India solve infrastructural issues which has been stunting its growth since Independence. Currently India is deprived of research and innovation due to irrational and biased policy strategies of large corporate houses and IT MNCs from the west who dominate the IT sector. We strongly feel that if Government includes MSMEs in IT then we will see path-breaking and cost-effective solutions in the transport sector.”
The other highlight of the event was presentation of the draft policy document of the revolutionary technology - On Vehicle Smart Module (OVSM) to Chief Guest Suresh Prabhu, honourable Union Minister of Railways, by AIM-IT’s founder chairman, Mr Vinit Goenka.
OVSM was one of the top five recommendations which were selected after a nationwide campaign conducted by a special policy group - #ITforParivahan. This policy group was set up by Govt of India’s IT task force members and renowned technocrats Padmashree Dr. Mohandas Pai and Mr. Vinit Goenka as a platform to crowd source ideas to improve Indian infrastructure.
Mr Vinit Goenka said that implementing IT will help government build transparent, economic, fast, scalable solutions through disruptive and inclusive ideas.


(ishandutta2007) #27

Did you mean INMOBI ?


#28

Fantastic results from Cambridge Tech. The company seems to be progressing well.

http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/19D7713D_D259_417D_8F48_4662C4760179_155726.pdf

http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/6FD219E9_08CC_49AE_B599_BBC169CB265D_191816.pdf

Disc.: Invested


(champvimal) #29

Kellton Tech Q1-17 results are out. Some Highlights:

Revenue:
 Operating revenue of Rs 1,400.9 Million; up 5.9% QoQ and up 35.0% YoY
 Total revenue of Rs 1,404.3 Million; up 5.8% QoQ and up 34.6% YoY
 Profit:
 EBITDA was at Rs 193.6 Million; up 9.5% QoQ and up 45.0% YoY
 EBITDA Margin stood at 13.8%
 Net Profit stood at Rs 122.1 Million; up 8.3% QoQ and up 42.2% YoY
 PAT Margin of 8.7%
 People:
 Net addition of 58 in the Quarter
 Total Headcount 1200+

  • Won 18 new clients during the quarter.
  • Digital Transformation services for Insurance and Financial Services company and also for a leading electric and gas utilities company.
  • Kellton Tech has changed its fiscal year end from June to March (effective FY2015-16.
  • Have now started their business in Europe too.

Experts, please provide your comments/advice.


(Baju) #30

Few companies which is expanding to to SMAC space is Mindteck, Persistent and possible HCL Info. Need to dig more. Invested few on tracking only


(rvetri) #31

Hi champvimal http://forum.valuepickr.com/users/champvimal
Thanks for your minutes… My humble opinion… If you are investing in a
theme - invest in the best company in the theme… I have learnt it the
hard way… In early 1990s, i did not invest in Infy as i thought it was
expensive… And instead invested in Pentafour software having very similar
financials… Look what had happened… Infy ( considered expensive then )
is up by over 1000 times and Pentafour simply vanished from the scene.If i
had invested in Infy instead of Pentafour, i could have retired extremely
rich…IMHO, if you are investing in SMAC it is better to go with 8K (
though considered expensive now ) and not in Kellton…


(v4value) #32

That makes sense. Only 8K business model is under question. After they raise money from market(500 cr in news), I would be vary of a blow up risk…


(rvetri) #33

Yes v4value http://forum.valuepickr.com/users/v4value…good point…
There is a risk with 8K… But the management seems very honest and
conservative… They have a principle to not give any guidance, because they
think they can go drastically wrong on the downside… See their
conservatism… Other companies will say something like "we will atleast do
a 100% growth and may be higher "… My gut feel is the cloud business will
grow 100% year on year and the only risk in my view is how will 8K scale up
its resources vis a vis its growth… happy investing…


(v4value) #34

Good luck sir. Its your money. I would be wary.


(ASPN) #35

http://economictimes.indiatimes.com/opinion/interviews/after-it-boom-indias-next-big-thing-will-be-iot-jim-morrish-machina-research/articleshow/54402424.cms


(weblinsolutions) #36

Being from the same industry and my avid interest in IT, I feel that IoT is more of a gimmick or rebranding of the existing stuff.


(Praveen Balla) #37

OK. I used my company email ID and posed as a new interest customer and sent an inquiry to review their products and services.

I am not thrilled by their brochure or services being in the same industry. It is a web development company at the most. I have attached what I received. SMAC is completely different from what these companies are saying their are!


(weblinsolutions) #38

I did went through offerings of many large and small companies and most of them seems to be rebranding regular offerings as something new. I feel IoT is a bubble which will burst as investors realize they are being made fool.


(ASPN) #39

Guys, its Latin to somebody like me who are not working into IT. Can you pls suggest some good sites/articles/material to read on SMAC/IoT. The intention is to identify the trends, find out the potential of that stream and which companies are working in that direction.

@crazymama, request you to share if possible.

Rgds.


(Abhishek Basumallick) #40

@Advait_6270 You can start by just doing a youtube seach on something like “introduction to SMAC” and you will get tons of short videos which will explain the basics.

Though, if I were you, I would focus on my strengths and look at industries I know well for digging deeper, rather than trying to learn something which sounds like Latin to me. Even if I am able to learn some jargon, I would still be at a major disadvantage compared to those who are very knowledgeable about this space. Liek Ramdeo Agarwal says, there are 5000 listed companies. You need 20. You don’t have to run after every theme.


(chets) #41

This may help few folks realize the complexity, fragmentation and players within IOT industry.
It is still early days to figure out how the monetization from each area would look like. Hope this helps: