ValuePickr Forum


(Mahesh Shah) #588

Happened to come across 3 month old article on web which concerns MPS Ltd. :

Formation of KITU Unit for M/S MPS Limited Bangalore Employees.

An overwhelming majority of employees of MPS Limited at Bangalore have enrolled themselves as members of our Union. Accordingly a General Body was held on Sunday the 18th February 2018 at No. 18th Cross, Sampangiramanagara Bangalore, in which the following have been elected unanimously as Office bearers and Unit Committee members of MPS Ltd Bangalore Unit of Karnataka State IT/ITeS Employees Union.

Office Bearers:

  1. Sri. Sridhara. M.L (President)
  2. Sri. Honnesha Gowda. (Secretary)
  3. Sri. Edward Thomas. S (Treasurer)

Unit Committee Members:

  1. Sri. Vijay Kumar N.P
  2. Sri. Madhusudhana. D.K
  3. Sri. Suresh. S
  4. Smt. Anuradha.
  5. Smt. Yogalakshmi. L
  6. Sri. Naveen Kumar. K
  7. Sri. Ajay Bhat. S
  8. Sri. Mallikarjun Swamy. M
  9. Sri. Vijay. J

MPS Limited Bangalore has been harassing its employees individually to accept the transfer to a so called Unit at Dehradun or face the wrath of dismissal. They were asked to resign forcefully by accepting a mere compensation amount of one month Basic salary. The Management resorted to a number of illegal terminations of those who questioned forced resignation and for not reporting to its Dehradun office. Several Senior Employees who have put in more than 20 to 25 years of service are facing untold mental agony due to the consistent and persistent intimidation and threatening by the Management. As a Union espousing the cause of Workmen, KITU has raised an Industrial dispute vide no. UKAB-2/PTN/CR- /2017-18 in order to protect the employees of MPS Limited from the illegal and unjustified acts of the Management.

(Rohit Balakrishnan) #589

MPS Concall notes - Q2 FY19

  • Core business was flat this quarter, expect to grow 5-7 % in the content side and double digit on the platform side in the next FY. Growth in core content solutions should be driven by pricing increase

  • Core margins in the quarter in the core business were lower due to shifting of revenues into other quarters. On a yearly basis the margins in the core business will be in the same range as earlier, however margin levers will lead to some improvement

  • The eLearning business is where the growth is, management mentioned that the loss has been contained in this business, and hope to turn a corner in the next couple of quarters before hitting the sustainable margins in FY20.

  • eLearning business has lot of opportunities to be cross sold to existing customers.

Discl : Invested

SEBI Registered Investment Adviser (INA100008832)
VRDDHI Capital

(vinay_new07) #590

While the results appear flattish, I think these are pretty much in line with the management guidance. One thing that persuades me to stick with the company (holding since about 2 years now) is the integrity of the management. Despite having >300 crores in their banks, they took their time with the acquisition instead of buying the first available option. Also, promoters not selling their own shares at market peak, instead holding them during the lull period further is point considering since they could have offloaded their stake during the QIP phase at higher values.

Further, with TIS acquisition now completed and results (in terms of increased revenues) already visible, I think best would be to see the next few quarters (at least 1 year) to ascertain the future. The management (specially under Mr. Rahul Arora) seems to have making all the good moves and the guidance seems very realistic.

Fingers crossed for growth in coming quarters.

(Rahul) #591

Do you recall if management gave more details in this regard?
Lets try to brainstorm on how they cross-sell their current services to clients of TIS.
Since they have a lot of content solutions, probably they can easily make use of them while creating / upgrading learning content of old / new potential corporate clients.

Now lets come to the other direction of cross-selling.
MPS ( seems to be offering Custom eLearning, Gamification and Serious Games, Learning Websites, Micro learning, Macro learning, Simulations, VR/AR/Animations. I doubt if any of them would be useful to regular MPS business.


Disclosure: Newbie investor who just read this interesting thread of discussion. Not invested but will closely track on how this new acquisition turns out.

(Amit Jain) #592

I Agree. It is a niche business. To really understand what it is doing and what it is capable of in the future, I think we should study its competitors or foreign counterparts, and what has been their trajectories. In that way, we can know how big a market it has. And whether we can expect the numbers to grow by at least 15% YoY.

Furthermore, this company is not popular with the fund houses, therefore, is likely to be available at a sharp discount in a continued bear market. Or in case of even a minor disruption the stock will sharply fall. Being patient is likely to pay-off.

(IcyHot) #593

After a sharp rally in the last week (stellar show by the mid cap and small cap stock), MPS announced yesterday evening that the CS has resigned. Now in the backdrop of a spate of CS resignations lately and companies being marred by Corp Gov scandals, I hope MPS is not the latest skeleton in the cupboard. Any clue as to why the CS resigned?