Hi Bharat,
No additional info except that RCS is still taking longer to implement on a widespread basis but infinite is definitely at the forefront of it…however, based on the trading history, it’s better to avoid the stock at higher levels.
Rgds.
Discl. - hold minor quantity.
Thank you.
Revamp of senior team compensation at Infosys is a reiteration of talent shortage.
In this industry one good guy is equal to 50 average guys as observed by Steve Jobs.
What weight one should attach to people moving into Infinite from other companies?
I think something important has happened in the Q3 results - apart from good margins and improving profitability, the company's debtor days have come down leading to much better generation of free cash flow. In my opinion, this was a major overhang on the stock and generation of FCF by release of working capital is a major positive.
| INR Mio | FY12 | FY13 | FY14 | Q1FY15 | Q2FY15 | Q3FY15 |
| FCF | 735 | 274 | 62 | 92 | 124 | 658 |
Infinite Computer Solutions (India) Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 23, 2015, to consider a proposal for buy-back of equity shares up to such amount of the aggregate of Company’s paid up equity share capital and free reserves as the Board may decide in accordance with the provisions of Sections 68 of the Companies Act, 2013 and the Securities and Exchange Board of India (Buy Back of Securities) Regulations, 1998.
Further, in accordance with the Code of Conduct for Prohibition of Insider Trading framed pursuant to the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, the trading window for dealing in the securities of the Company will be closed from June 19, 2015 and would open 48 hours after the announcement of outcome of the Meeting to the public.
Anyone still following this stock?/
It has a good cash flow till date… posted below from moneycontrol.
any other issues apart from a single big customer??
Cash Flow ------------------- in Rs. Cr. -------------------
Mar 15 Mar 14 Mar 13 Mar 12 Mar 11
12 mths 12 mths 12 mths 12 mths 12 mths
Net Profit/Loss Before Extraordinary Items And Tax 125.80 65.79 124.58 91.45 37.65
Net CashFlow From Operating Activities 91.42 36.82 49.74 38.44 20.63
Net Cash Used In Investing Activities -6.40 3.62 -16.55 4.34 -3.28
Net Cash Used From Financing Activities -12.72 -46.79 -51.94 -29.30 -11.80
Foreign Exchange Gains / Losses 0.01 0.06 0.90 2.25 -0.05
Net Inc/Dec In Cash And Cash Equivalents 72.30 -6.30 -17.84 15.74 5.50
Cash And Cash Equivalents Begin of Year 85.21 91.50 109.34 39.68 34.18
Cash And Cash Equivalents End Of Year 157.50 85.21 91.50 55.42 39.68
Source : Dion Global Solutions Limited
Infinite has announced share buyback. Link here
However I didn’t understand the terms of buyback. Can I hold on to my shares without selling?
The link to sebi guidelines
http://www.sebi.gov.in/faq/buybackfaq.html
From what I understand there is a choice to not sell the shares.
However I think its worth buying more shares for a quick profit if the buyback price is set on the higher side.
Buyback at price not exceeding 250/- . it plans to buyback 15.5% of its shares back.
Help me understand… promoter shareholding is already at 75% (maximum permitted), with this upcoming buyback, if it goes through, wouldn’t this stretch promoter holding beyond the 75% limit?
the buyback shall be with Cash on the company books , Hence the stocks shall be extinguished and the total stocks trading shall decrease by a certain amount. However the equal percentage from the Promoters stock holding shall also be bought bcak . Hence percentage holding shall remain the same.
I sold my stock as I found better opputunities.
company has done 3buyback and reduce no of shares. company promoter also expect good growth as they deliver what they had said or envisage.based on con call they are done with expenditure as they had created plateformwhich will yield results now. dollar revenue is a key nowonwards
330Cr of cash, debt free, more than 75Crs free cash flow and growing available at 850Cr market cap. Not sure if this is a value pick or value trap.
Haven’t been able to find anything susceptible yet. I have validated whether oracle, ibm are using their products.
Their products Zyter, NetSfere seems to be doing well.
The company seems to be moving quickly in SMAC things.
Haven’t find any red flags about management yet.
I think this company provides sufficient margin of safety.
The company is not distributing dividend but doing buybacks.
I am looking out for negatives. If any one have negative points please mention here.
Thanks
There is no negative as such, myself also was holding this company. Only thing that is negative is the dismal growth rate of only 10 - 15 percent. This may not be the multibagger or the compounder we look for. It should trade at higher price but market seems to be discounting it due to low growth prospect in future and it may never get rerated.
There’s really not much explanation apart from “mid cap IT is out of favour”. However the stock has given me good returns I’m sitting on 40% profits already. I don’t think the co will grow a lot but buyback is encouraging. I’m in fact happy that co is not giving dividends and choosing buybacks instead since I think shares are underpriced.
Disc: biased, long since a while, and a bunch of other midcap IT cos also.
This co is trading book value, even quoting below the recent buyback at 265. Plus the company is generating close to 100Cr cash/year. Just that the growth has been tepid and will probably remain that way. Wondering how long can the stock remain undervalued. What are the chances of a catch-up in the share price?
Company has completed its buyback. At present price itits value but. Last are having 450crr cash. Even if I reduced 150cr cash for buyback still 300cr cash in hand. With this valuation it’s cheap. New financial guideline will drive the prices.
3 buyback unable to raised the share price.
They seems to doing good in Healthcare segment.
Havent seen any update for few years on Infinite Computer in this Forum.
Infinite looks attractive at CMP,
Anyone tracking please update your views.
Debt to equity: 0.08 ,Promoter holding: 74.87%
52 Week High/Low: 255.00 /188.50,CMP : 229.35
Disclosure : Invented around current price.
The only negatives, at this price ,that, i see are a) no dividend b) high idle cash overseas. Apart from these i am unable to get anything against this stock.
To the dividend point, I’ll just reiterate what the management told in the last concal. They said that they prefer buy back as a tool to distribute surplus cash to shareholders as they feel it is far more tax efficient
i prefer dividends and i think stock markets might be indicating the same. 
. Also , when so much of cash is lying around , why the small debt, unless they are got these debts at very low rates ,it makes no sense,isnt it?