Kellton Tech - Growing IT company


(n.arvind2k) #108

Yes, announcement says Kellton buying assets from MCS Global. Hopefully company will come up with clarification/rectification on this.


(mp bajaj) #109

mSehat-
http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/CC5B9AC3_51D6_4B45_935B_E6CC8DDB8F03_145529.pdf


(Rajeev M. Parashar) #110

What’s the current status on mSehat?


(n.arvind2k) #111

Kellton to focus on digital technologies

Developing fitbit-like device for public health sector; plans acquisitions.
The company is looking at acquisitions in the areas of artificial intelligence and machine learning space.


(Rahul Deshmukh) #112

Kellton to focus on digital technologies

Developing fitbit-like device for public health sector; plans acquisitions
Hyderabad: Kellton Tech, a Hyderabad-based IT services and solutions company, is focusing on Internet of Things (IoT) and Data Analytics, and sees almost 50 per cent of its business coming from digital transformation. It sees 2017 as the inflection point for digital transformation. The company is looking at acquisitions in the areas of artificial intelligence and machine learning space. The company wants to create a war chest for near-term acquisitions.
The company plans to fund the organic growth through internal accruals. But for its inorganic growth, debt route has been tapped. When the time is right, Kellton plans to go to market and raise equity for future acquisitions.
The company has been constantly investing in next wave technologies since 2009. Gartner says today 25 per cent of the companies are either adopting or thinking of going digital and this is expected to touch 75 per cent by 2020. Kellton sees that digital transformation will contribute 75 per cent of its revenues by that time.
Internet of Things
The IoT is becoming increasingly significant in the technology space. It is enabling productivity improvements. Global companies are constantly investing in this area as IoT is applicable in a variety of sectors such as traffic management, telecom, power, oil and gas sectors. It has a potential of over $3 trillion.
Companies such as GE are using IoT in the aviation industry. IoT has a huge potential on the power turbines segment. It is sending huge data that is helping companies to refine their processes. IoT devices do not need batteries, which is a big cost advantage.
On the other hand, analytics has come out with productised solutions and is going to be the next major game changer in the industry. “We are now seeing predictive analytics. IT companies are constantly innovating. Big companies are however struggling to make themselves ready to tap opportunities here as they had concentrated their efforts all these years elsewhere. But we at Kellton are already prepared to use analytics for across verticals. New technology adoption is in our DNA,” Niranjan Chintam, Chairman, Kellton Tech told Telangana Today.
Kellton is serving industry majors such as Lockheed Martin and Coca Cola. Coca Cola is implementing a pilot project, where Kellton is asked to monitor its refrigerators through sensors.
Social impact

Kellton is also getting actively involved in projects and areas which have maximum social impact both in India and globally. For instance, in Uttar Pradesh, Kellton came out with a mobile solution that enabled enrollment through accredited social health activists (ASHA) fronline workers for immunisation and other government health initiatives. Kellton provided videos to health workers on symptoms for different health conditions and nurse visits are scheduled through analytics based on the severity of the case so that the end beneficiaries get the outcome, intended.
The World Health Organization (WHO) wants to replicate the model in Africa now. The company will also be executing several other citizen services in other states. Kellton is on the verge of creating a new fitbit like device that can recognise not just pulse and temperature but also BP. In the US, where senior citizens alone, such devices can come in handy to send alerts to their family members.
He added, “We are going to get into machine learning and artificial intelligence in the next few years. We are also focusing on blockchain technology to serve the banking and financial sector. We had been a tactical company in terms of acquisitions. IT sector globally is seeing a lot of volatility. But India is very well placed to take a big leap in future among the emerging markets.”

  • Revenue:ØQ2 FY17 – Highlights

Operating revenue of Rs 1510.7 Million; up 7.8% QoQ and up 37.1% YoY
Total revenue of Rs 1512.3 Million; up 7.7% QoQ and up 37.2% YoY
Profit:Ø
EBITDA was at Rs 212.3 Million; up 9.7% QoQ and up 32% YoY
EBITDA Margin stood at 14%
Net Profit stood at Rs 132.8 Million; up 8.8% QoQ and up 38.7% YoY
PAT Margin of 8.8%
People: Ø
Net addition of 43 in the Quarter
Total Headcount 1250

Pros:

  • Company is expected to give good quarter
  • Company has a good return on equity (ROE) track record: 3 Years ROE 32.16%

Key Clients: Penton Media, JP Morgan, New York Daily News, Discovery, Guru.com, Nielsen, MakeMyTrip, Rocket Internet Group (Jabong.com), Buddy CRM, Novartis, First Rain, Par Pacific, PayTM

Market Cap. when posted : ₹ 542.17 Cr


(Rahul Deshmukh) #113

PayTM merchant app developed by kellton and Upay all dealing by Kellton

MARKET CAP (RS CR) 574.18

A long way to go, will breach expectations.


(Rahul Deshmukh) #114


(rao13) #115

Any particular reason why kellton is on such a bull run?


(Rahul Deshmukh) #116


(rahulparekh22) #117

From analysing the shareholding pattern, an FII - Grandeur Peak has acquired around 3.35% of the company from the open market this quarter under multiple sub-funds they manage - which is a very good development

This is a big fund which has $2.6bn in global investments. Here is an article on them.

http://www.forbes.com/sites/liyanchen/2015/11/23/from-utah-to-china-meet-the-2-6-billion-fund-that-invests-like-missionaries/#5cf485ec3942


(aravindms1us) #118

Kellton is an Amazon partner.
https://aws.amazon.com/partners/find/partnerdetails/?id=001E000000UfZERIA3

Interesting case studies can be found here:
http://www.aws-partner-directory.com/PartnerDirectory/PartnerDetail?id=2234

Disc- Invested.


(Rajeev M. Parashar) #119

How different is Kellton’s offering compared to 8k Miles?

Also, the case studies page is full of grammatical errors, and typos. If I were a potential client reading this page, I would probably end up choosing some other Amazon partner.

Disclosure: Invested.


(aravindms1us) #120

I think Kellton is trying to do many things. The promoters goal include acquisitions and improving the the valuation sales etc. They have done acquisitions of wide variety of companies. The company is evolving and even promoters are in Learning stage. Paytm and other Indian companies are clients. I heard Kellton was also working as a H1b consultant as well. 8k miles is a high margin cloud player and an advanced AWS partner with a sound focus on healthcare domain. As a company and promoter quality I would rank 8k better. On valuation front Kellton wins.


(n.arvind2k) #121

Kellton is working on Artificial Intelligence, IoT, Cloud, Social, Mobile Analytics, BOT2P, P2BOT areas.
Few of their blog posts suggests that. I hope Kellton employees can share more on how deep their work in those areas.
http://www.kelltontech.com/kellton-tech-blog/why-startups-should-adopt-artificial-intelligence

http://www.kelltontech.com/kellton-tech-blog/amazing-things-artificial-intelligence-can-do-your-business

There is an interesting article on potential AI future market growth prospects… Plz. read.

Why 2017 Is the Year to Invest in Artificial Intelligence Stocks
AI is reaching an inflection point – and investors should take notice now.

Artificial intelligence (AI) is one such opportunity where companies are making big bets on it and where the research backs up its potential.
And if AI pans out the way many are thinking, then 2017 may be a very good year to get on board with this technological shift.

In 2016, the AI market was worth just $644 million, according to Tractica. This year, that amount will nearly double and then grow exponentially from there. Take a look:

Clearly, we’re still at the beginning of AI’s revenue possibilities, and its opportunity will accelerate over the coming the years until it reaches $37.8 billion less than 10 years from now.

Growth in the AI market will be spurred on by many large tech companies that implement AI into their current businesses. For example, Facebook (NASDAQ:FB) uses its own internally developed AI programs to read the posts we put on Facebook and understand the context they’re written in. The company’s DeepText program reads thousands of posts in just seconds and does so across 20 different languages. Facebook also uses deep learning to tag our friends in photos, and is even using AI to identify people (and their voices!) in videos.

But AI is expanding its reach outside of the technology sector as well. There’s plenty of talk about self-driving cars these days (I’ve done my fair share) and that’s because the number of vehicles worldwide with some level of autonomy will hit 76 million by 2035 – and be worth $77 billion by that year.

That growth is being fueled, at least in part, by AI. NVIDIA Corporation (NASDAQ:NVDA) is using its graphics processors (GPUs) to create some of the most sophisticated image processing supercomputers, like the company’s Drive PX 2. The computer is being used by 80 automakers and auto suppliers already, and Tesla (NASDAQ:TSLA) recently said that it would use some of NVIDIA’s technology in its next version of its semi-autonomous Autopilot driving feature.

Tesla is itself becoming a leader in AI technologies, and back in October, the company posted a video of its self-driving AI driving a person around in one of its vehicles – completely hands-free – as it navigated stop signs, bicyclists, and foggy roads.

OK, so technology companies are obviously betting on AI’s future, and NVIDIA is proving that the automotive sector will bank on AI as well, but it’s important to note that governments are betting on AI’s growth as well.

China announced last year that its government will invest in new AI technologies over the next three years, as it tries to create its own $15 billion AI market. And even the U.S. government has taken notice of China’s recent focus on artificial intelligence. In a report released back in October, the White House said that Chinese scientists are publishing far more AI research than American scientists and that their work is being cited more often. The U.S. then urged more AI research and development spending in order to catch up and improve economic growth.

The South Korean government recently turned its attention to AI as well. After Google’s DeepMind AI beat a South Korean grandmaster Go player in an exhibition match in Seoul, the country pledged $863 million to develop more AI technology and called on private companies to invest even more.

There’s no turning back now

With so many companies (and leading world powers) focusing their attention on AI, there’s no stopping the momentum now. Investors waiting around to see how AI plays out could be left in the dust, as this technological shift begins to speed up even faster this year. Of course, there’s no guarantee that 2017 will be the best year to invest in AI. But if all of the AI focus from 2016 spills into this year, then it
certainly looks like a good bet.

With every tech company going crazy about Artificial Intelligence…And Market ready to take off and expected to be $36.8 billion by 2025 … I feel there is huge potential in emerging technologies.

Disc: Invested with tracking quantity.


(roomy) #122

caution the consolidated ttm pe for this co is ard 59 based on today price , still inspite of the fall which says that its still very expensive IMHO , does anyone have idea of 2.23 cr tax paid in the sep16 quarter why was it so much ?


(roomy) #123

sorry the tax of 22.3cr not 2.23cr?


(vikrantmehta888) #124

@roomyd Consolidated TTM PE is around 12 and not 59.
Please see https://www.screener.in/company/KELLTONTEC/consolidated


(roomy) #125

sorry my bad did not check properly sorry


(n.arvind2k) #126

Kellton Tech: Q3 Results… YoY
Income: 158.2 cr vs 116.5 cr, Up 36%
Net Profit: 13.96 cr vs 10.12 cr, Up 38%
EBITDA: 22.1 cr vs 16.46, Up 34.2%
EPS: 2.94 vs 2.33, Up 26%

Kellton Tech: Q3 Results… QoQ
Income: 158.2 cr vs 151.2 cr, Up 4.7%
Net Profit: 13.96 cr vs 13.28 cr, Up 5.2%
EBITDA: 22.1 cr vs 21.2, Up 4.2%
EPS: 2.94 vs 2.8, Up 5%

Kellton Tech: 9M FY17
Revenue: 449.9 cr vs 331.2 cr, Up 35.8%
EBITDA: 62.7 cr vs 46.0 cr, Up 36.2%
Net Profit: 39.4 cr vs 28.2 cr, Up 39.5%

http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/500AC740_DA79_4753_B7B6_2CF5210649E3_173145.pdf

My Take: QoQ numbers does not look good, with market expectations are around 20 to 30% growth! …Having said that with forward EPS… 10.86 at CMP 117 stock is trading at 10.7 PE which is more comforting…
With QIP ++ any NEW acquisition news… will help the stock price to move up … but Management have to start delivering the promises …220 cr by March :slight_smile: but yes Demonetization effect also … I feel one should give more time and space for company to perform.


(n.arvind2k) #127

http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/8FDC1F8A_0F29_4F8C_9B03_29CF7F928EAB_180820.pdf