JIO case study, Worth reading. They have solved a good problem where customers are less dissatisfied. A complete platform for customer engagement. The complain passes thru all stake holder, no silo messaging.
I loved the fact that company is working on NSE listing. It will remove circuit levels problem. It will add credibility to management. It will reduce transaction cost for shareholders. BSE charges bomb for shares only traded in BSE.
Results were fantastic. Only Account receivable seems very high.
Disclosure:- No share bought or sold in last 90 days. Holding from low levels in three PF.
Centrum becomes the first major house to recommend the stock as a thematic buy…excerpts as follows:
Intense Technologies Ltd
Niche offering in digital transformation space
Intense Technologies Ltd. (ITL) is the market leader in Indian Telecom document management and customer communication products. ITL’s UniServe platform enables enterprises to digitize various aspects of customer life cycle management from customer acquisition, gaining customer insights, engaging them through digital channels, delivering world class experience. In FY16, Asia-Pacific accounted for ~57% of revenue followed by Europe and Middle East (42%). Revenue for the company grew at a CAGR of ~21% over FY12-16.
Theme:
Signing of a $25 million Multi-year Managed Service Agreement (MSA) with a leading telecom company in to support further growth;
Foray into North American market & inroads into new business verticals like BFSI to provide significant growth opportunities;
Launch of UniServe NXT - a platform for business agility in the connected world of Internet of Things (IoT); 4) Strong Q2FY17 performance.
· Stock recommendation based on Technical: ITL is trading in a medium term uptrend and is now moving towards its long term supply levels which are currently placed at near 88-100 range. Buying is recommended for a target of 135 in the coming 8 months for which recommended stop loss at the current juncture is 60.
· Signing of a $25 million Multi-year Managed Service Agreement (MSA) with a leading telecom company in to support further growth: ITL recently signed a multi-year $25 million deal with one of the leading telecom companies in India which further strengthened its market leadership in Indian Telecom industry. Amidst the flat top-line growth for last two years at just 0.7%, the deal provides a near term growth opportunities for ITL.
· Foray into North American market & inroads into new business verticals like BFSI to provide significant growth opportunities: ITL recently announced its collaboration with one of the largest wireless telecom companies in North America (one of the largest software markets) for deployment and support of the ‘UniServe’ platform for reports and analytics. Further, ITL expects to leverage its competitive strength in Telecom & Insurance industry to diversify into other similar verticals like BFSI which would expand its addressable market.
· Launch of UniServe NXT - a platform for business agility in the connected world of Internet of Things (IoT): ITL is planning to launch its new platform UniServeTM NXT which was recognized as the best of Future IT (Emerging technologies) iCMG Architecture Awards panel for 2016. The product would help enterprises in building business agility by digitalizing customer centric business processes swiftly and take on the future opportunities generated by IoT. This could be an additional opportunity to upsell and cross-sell to existing customers.
· Strong Q2FY17 results: In Q2FY17, revenue grew at 200% YoY to ₹19.2 crore while EBITDA grew by 275% to ₹6.9 crore. Net profit stood at ₹6 crore (vs loss of ₹4 crore in Q2FY16). Further, the management is confident of strong earnings momentum to continue in future supported by launch of new platform and expansion of ‘UniServe’ platform into newer verticals and geographies.
Risk factors:
Low market capitalisation;
Company is only listed on BSE and lacks liquidity;
Thanks for the informative write-up, recently few brokerage firms recommending this stock with higher targets, after demonetization & eKYC for Jio and also for opening bank accounts.
This is just the start, after the employee cost which is pretty must fixed with slow variance the entire new revenues will be profit. If you look at bsnl order which is 7 cr per quarter that alone should add 4-5 cr to bottom line which is 8-10 rs eps just from one order. That will start from Q4, then you add all the other things that are going on.
Thanks to stocklady . Wonderful win from Intense. Journey has started. Read between the lines management focus on earnings expansion.Disclosure : Core holding
If you read the annual report carefully the CEO has stated that the BSNL deal and existing cleint repeat business will take care of the operating costs. New deals will directly add to both the top line and bottom line. To translate this into actual figures BSNL deal is about 30 crores per year while i believe exisiting client engagements add 30 crores more. So total 60 crores of assured annuity payments are enough to take care of operating expenses. The US deal , the new European deal and further additions will directly add to both to the top line and bottom line. If we assume both the US and Europe deal to be roughly 50 crores in total what that means is around 40 crores directly added to the bottomline or EPS of 17 to 18. A 20 PE takes this to a target of 340 to 360 if the 50 crore assumption above holds true. So in effect if you take forward valuation this stock is available for less than 10 PE. With more order wins the bottom line will shoot up disproportionately as operating leverage takes full force and stock will continuously be rereated with every announcement
Refer to my original note…I had mentioned reason #1 as big contract from a company , which I guessed was BSNL. In absence of any announcement in this matter ( probably because of a Non Disclosure agreement ), i hunted and found the details on the net. DetailsJune2016.pdf (76.5 KB)
The 4th item file clearly shows Intense as the winner of the Customer acquisition and Communication Mgmt System tender from BSNL.
Have anybody seen their Software?
How is the architecture in comparison to Salesforce?
Do you guys think that future Avg US Deal sizes might be bigger amount?
Few Observation:
– UniserveNXT architecture, includes Big Data as part of the solution. I think its solid futuristic solution.
– If Jio and BSNL have selected the products means, it must have beat all others.
– I read last 4 ARs. Seems, Company moves in 2016 per 2014 and 2015 plan. So per 2016 AR, It may enter into bigger league.
– Product seems catchy specifically for Large and Old business as they can not change everything and still needs Customer Facing solution to remain competitive. Intense implementation do not require to change legacy systems. This will speed up the deals due to faster pace of digitization. Also, Leaders in biggies will not have issues to spend fraction of Enterprise IT Budget and politically prove that they took care of customers. Whole scenario can be clearly understood with one case study where they did end to end implementation in six months. I think, the industry , Size and Business Segment that they are addressing is perfect recipe for faster deals.
– Same concept can be applied to multiple Industries. Intense can be a horizontal product i long run. In latest deal win they mentioned Healthcare too.
– UniServe NXT is 95% Big Data and Cloud. if not 100%, providing configuration based Development capability on Big Data it seems. This will argue even well to win any RFP for Biggies politically within enterprise. NXT is leaving all creativity open to solve the business problems and may wider the Business area of the product.
– I think product is using Enterprise Data smartly to provide the solution as oppose to 8KMile or Majesco or Intellect Design which are core operational solutions. This is clearly evident from the fact that 60 crs deal can cover operation cost vs other three mentioned above is never ending hope to be profitable.
– Also, I think Intense kind of product may take longer for initial wins but after few references it should gather the speed.
BUT MOST IMPORTANT – Has anybody worked with or seen the Software product? Please reach out to contacts and see if we can share with each other.
