Kellton Tech - Growing IT company

Stock Opportunities Untested - but worth a good look
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Not only has the stock taken sound beating, it is surprising how quiet the promoters of Kellton have been. I doubt two things.

  1. Either they have honest intent and are trying to turn things around positively rather than promise huge targets.
    Or.
  2. The noose around the neck has tightened enough that there is not much left to say. I don’t want to see exceptional results, just good cashflow will keep me happy.
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Sometimes stock price shake your decision about company. No doubt there may be impact of capex on the NP AND EPS. But as per looking to border picture, management is looking honest and working hard to perform best in competitive environment. Even in deep search for Mr. Niranjan Chintam i didn’t find anything which goes against him. Top of that the way company strategically acquiring good foot hold in EU, USA AND SOUTHEAST ASIA. In April 18 company just acquire Plentpro https://economictimes.indiatimes.com/tech/ites/kellton-tech-acquires-planetpro/articleshow/63578224.cms.even i found that as per data analysis specially for hospital data there are very few names in which one is kellton tec.

this is my sole opinion, investing in stock market is very risky do your own research and invest accordingly.

dis; invested 1% of portfolio but will follow strict SL

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I have seen Kellton hit 20pct circuits a couple of times without reason. But some investors today spoke about Kellton reducing debt this quarter. Couldn’t find information. can somebody share a link or debunk this piece as rumour?

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https://m.economictimes.com/tech/internet/kellton-signs-multi-year-cloud-based-iot-project-with-dormakaba/articleshow/67458061.cm

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The highlight of Infosys results is the writedowns in acquisitions.

Kellton has a ton of acquisitions and no write down yet. Companies should be forced to revalue the value of their goodwill and acquisitions. That’ll bring the facts out-no change to liabilities, but a factual haircut to assets. Just posting EPS growth with increasing debt and receivables will never impress the markets.

I’ve never understood their goodwill, receivables position and the borrowings. Dangerous combination. Some guys feel that collecting receivables anf paying off debts are very easy!

As they say on Wall Street, earnings are like an underwear. What is disclosed is interesting and what is concealed is vital.

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Since acquisitions have just been in the last two years, write downs are not there yet. I cannot assume they will make that provision though.

Goodwill on the other hand is a problem alongwith piling debt.

But, my gut feeling is that Kellton can be a long term story and things will fall into place gradually. These are challenges which most small cap to largecap transitions might be facing.

Ironically, gut feelings don’t bring gains. We have to wait and watch.

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237

Kellton tech expanding in Europe. Poland is a preffered desitnation to expan in EU due to lower costs.

Kellton also completed sale of staffing business of supreme soft global.

Q4 execution remains key.

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Promoters of Kellton tech finally raise their stake after many quarters of selling. Is Kellton back on track?

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241

Exited. This is some kind of joke. They publicize a contract (the FCI order) worth 5% of yearly sales. One bonus is not a sign of spring. No other concrete numbers are there. A maze of foreign subsidiaries and pledge has increased by 10% of total holding.

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  • The people who brought Enron to the knees (and bankrupt) Jeffrey Skilling was CEO of Enron when it was involved in fraud. He was Harvard educated.
  • Ramalinga Raju (Satyam) was also graduate from Ivy league college.
  • The promoter of 8K software have also been educated from IIM. Not saying he is a fraud, but if you look at what he has done recently, it does not inspire confidence.
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243

Anyone still tracking this company? Just trying to understand what happened to the stock after the last post on this thread. One thing I can see now is that the management’s optimistic revenue target of 2000 cr is way up the actual revenue.

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Company’s financial performance:

  • In the first half of FY24 (the six months leading to September 30, 2023), they made a total revenue of Rs 4,905 million, which is 10.3% higher than the same period the previous year.
  • Their EBITDA (earnings before interest, taxes, depreciation, and amortization) for this half-year was Rs 548 million, up by 6.4% compared to the previous year.
  • The profit margin for this half-year was 11.2%.
  • They had a net profit of Rs 319 million for this period, with a profit margin of 6.5%.
  • Their earnings per share (EPS) for the first half of the fiscal year stood at Rs 3.32.

In the quarter ending on September 30, 2023:

  • Their total revenue for the quarter was Rs 2,410 million, which is 5.8% higher than the same quarter last year.
  • They reported an EBITDA of Rs 268 million, up 3.1% compared to the previous year’s quarter.
  • The profit margin for this quarter was 11.1%.
  • They had a net profit of Rs 165 million for the quarter, with a profit margin of 6.8%.
  • The earnings per share (EPS) for this quarter was Rs 1.78.

They also acquired 8 new clients in this quarter and worked on various projects, including a digital success platform, a purchase order automation solution, code deletion services, and a web portal for an oil and gas client.

Furthermore, they have been recognized as one of the premier tech brands in 2023 by the Economic Times, and they expanded into the Singapore market.

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