SecUR Credentials – unique service offering makes it a play on rising employment

(kaustubhkale) #21

I completely agree with your point. I think receivables and cash flow stress is key monitorable to be tracked.

(kush_gangar) #22

Receivables would be high mainly because of 12-15 Cr sales in the last 3 months itself as the growth picked up…Hence, no. of days would not be more than 90-100.

At the end this is a B2B business and will have high number of receivable days (minimum would be 2 months)

(shyam) #23

First major mainstream media mention that I have seen of the co,doesn’t include much new info though.

Financial Express

(lastgenesis) #24

Thanks @kaustubhkale, for highlighting an extremely interesting opportunity, primarily in the uniqueness of the model in the listed space.

Couple of observations, opportunity wise as others have mentioned it is quite huge as very few companies to my mind are doing proper (or any) background checks and this is something that will to my mind most definitely come into vogue in future with increasing incidents of fraud, especially given the “once bitten twice shy” phenomenon.

The opportunities for operating leverage are huge, essentially cost will only be the software (which is already largely done) and the people. Given that this is broadly a startup they can probably handle a much larger turnover with less than proportionate increase in costs.

Also there can be opportunities for global scaling up if you develop/ buy databases there or partner with existing cos in that space for outsourcing. There would be a good amount of cost arbitrage i assume.

In that context Authbridge whom @jatin had linked seems to be a global player with 140 countries presence, obviously it has a 11 year start on Secur having commenced operations in 2005 but shows you the chance is there. Does anyone know anything more about Authbridge or any other player in the industry? Might give an idea of how much of the market is already penetrated.

BTW Aadhaar will not a alternative for this, as it gives only proof of identity, in addition to that potential employers will want proof of qualifications (educational and career), criminal check etc which Aadhaar will not provide and I am quite sceptic on potential of any Government database filling in for that.

Disc: not invested but interested after reading this post… (interesting website worth checking out)

(lastgenesis) #25

Got the numbers of Authbridge who is market leader as per earlier post, Brief financial position is below:

While we do not have latest year nos, Secur seems to have got a similar turnover in 1 year what this chap has done after doing business for a decade and supposedly having a global presence. I don’t understand it, either Secur is a real stud or this guy is incompetent (or possibly not the main competitor - though he does seem to have a lot of media coverage). Also it kind of tends to make one think how large the market actually is, while in theory this should be a huge opportunity, I am less sure now.

The stated intent of increasing sales thru better credit terms (as per DHRP) is worrying. Also I found it weird that for a company with a turnover of 30 cr, they are budgeting a marketing & PR expense of 5 cr. Extremely high! While I understand this is a micro cap and operational & management risks cannot be comparable to normal midcap/ small cap stuff but this needs more introspection and a few more quarters of results before taking any action for me…

(Sarabjeet Singh) #26

@lastgenesis : thanks buddy, good info.

Could you please share the source of Authbridge numbers.

(lastgenesis) #27

Got it from the MCA website. Available for a fee, full AR is there but not sure if we can share it so have made a snapshot.

([email protected]) #28

It’s a public document if extracted from MCA. Nothing stops u from sharing it.

Since authbridge is a Pvt not sure if they r required to submit an AR. Only balance sheet maybe available without schedule

(lastgenesis) #29

it is a 20 odd page document with auditor report, schedules, cash flow etc. there is no Management discussion analysis kind of section if that is what you are referring to but full financials are there. In any case we are not investing in Authbridge, so all data that may not be needed WRT looking at Secur.