A small consultant company which provides financial solutions to airlines business and makes softwares/products to process their revenues. From the issue of air ticket all the way to entire financial cycle, this company provides solutions to airlines. They provide revenue accounting solutions, audit recovery solutions and also decision support solutions. They have 200 clients in their kitty and have a good track record of last 5 years.
CMP(52 week high/low)= 335 (400/100)
Debt = 10 Crs
Dividend yield= 6.5%
Market Cap = 533 Crs
Average ROE of last 5 years = above 20%
Average OPM of last 5 years = around 25%
It was previously named Kale Consultants, but in 2010 accelya group (UK) acquired it from promotors at Rs 172/share and is now holding 75% of the company. Accelya group is into similar business of providing solutions to airline industry in US and Europe through BPOs and hence this acquisition. Their vision is to become a leaders in complete business efficient solutions for airlines industry.
They have done a buyback of 13Crs or 6% of their equity.
1). Into a niche business segment and seems to be specialist in their segment while gaining steady market share globally.
2). With airline industry always struggling for more efficiency and low overheads, this company stands for a better future ahead.
3). Business model and products are sticky in nature and hence will make their customers dependent on them for long term-A moat.
1). Airline industry can also become a negative since, many companies may eventually vanish and hence accelya suffers from client loss or even worse their payments.
2). Into a very niche segment, and hence any major change in airline industry may affect this company for sure.
Will request other members on forum to look at this company and give their insights about this business as an investment.
PS: Last year my friend told me about this company as a good investment option, but i turned it down by just hearing the name and thought it to be just any other IT company. The stock has increased 3-times since then.