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Mindteck - IoT play

Mindteck, a global technology company established in 1991, provides Product Engineering solutions and Information Technology services to top-tier Fortune 100 companies, start-ups, leading universities and government entities worldwide. It has served medical device manufacturers, top-tier semiconductor companies, analytical/scientific powerhouses, equipment OEMs, public sector entities, and service companies in the Global 2000 for over 22 years. Presently, the company employs over 1,000 individuals throughout offices in the US and UK, Singapore, Malaysia, Bahrain and India. It also has four development centers (US, Singapore and India (Kolkata, Bangalore)). The company is listed on the Bombay Stock Exchange (BSE 517344), an ISO 9001:2008, ISO 27001:2013 certified company and ISO 13485:2003 certified to serve the medical electronics industry; assessed at CMMI Development Version 1.3 - Level 5.

Interesting part of the company is its recent foray into IoT (Internet of things), Cloud Computing and Big Data where the scope of opportunity is really big.

According to Gartner :

Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from 2015, and will reach 20.8 billion by 2020. In 2016, 5.5 million new things will get connected every day.

Gartner estimates that the Internet of Things (IoT) will support total services spending of $235 billion in 2016, up 22 percent from 2015. Services are dominated by the professional category (in which businesses contract with external providers in order to design, install and operate IoT systems), however connectivity services (through communications service providers) and consumer services will grow at a faster pace.

Areas of demand in IOT


Mindteck has IPs in
1. Wireless Stack: MindWisp ZBP (ZigBee Pro), MindWisp ZIP (ZigBee IP) and MindWisp SEP2.0 (Smart Energy Profile 2.0)
2. IoT : Ignite-ILS(Intelligent Lighting System) and Ignite-EMS (Energy Management system).
3. Enterprise Software: Mind-CSTS (Mindteck Customer Support Ticketing System), OmniCatch (Attendance Analytics and Fraud Management solution) and Prod-XL (Automated workstation analytics system)
4. Process: MindMARQ (detailed requirements management process well-tailored for services and product companies) and MindAssure (comprehensive Product Testing Framework for product engineering customers)
5. Cloud and Big Data: Mind-CDMI (helps in building right cloud storage strategy for business solution) and MegaMind (Automated Car License Plate Info Extraction)
6. Healthcare: Mind-CTMS (linical investigation and study management)
7. Semiconductor: GenSim (rapid modeling and simulation) and Mind-FA (diagnostic UI as well as scriptable interface and a test harness)

Financial data (Source: :
Market Cap.: Rs.248.33 Cr.
Current Price: Rs. 98.65
52 Week High/Low: Rs. 194.00 / Rs. 54.00
Stock P/E: 9.16
Dividend Yield: 1.01%
Price to book value: 1.33
Debt: Rs. 0.00 Cr.
Return on equity: 12.42%
PEG Ratio: 0.22
Promoter holding: 64.50%

Annual Results (Source: ):

Annual report:

Last quarter presentation:

Management interview - Yusuf Lanewala, Chairman and MD of Mindteck, interviewed Live by ETNOW - December 07, 2015 -


  1. Debt free.
  2. Huge market opportunity.
  3. Recent wins in the IoT space including including Smart grid project for Bangalore electricity and supply company (BESCOM).
  4. Early adopter of ZigBee standard. ZigBee is used in IoT devices than WiFi. More on Zigbee vs Wifi in
  5. Got IPs in the IoT & embedded space
  6. Part of IoT alliances


  1. Mindteck’s OPM is very low for an IT company. With increased billing rate pressure as other big companies get into this space, this will be a big negative. But in the interview, MD says he is expecting double digit margin from the projects. So we have to wait and watch.
  2. Given the company history of 20 years so far, company seems to be conservative in its growth and seems to lack growth engines. So will its new initiatives pay off now?
  3. Not enough information about promoters (Vanguard Group (US) - Investment Management company)
  4. There is no mention of their past or existing clients in their website. So this is unknown to me, so I have added this as a risk.
  5. Mindteck has not shared the revenue that their IPs/Products produce.
  6. Mindteck has not shared split up of revenue between different areas. From the interview, we can make out that 74% of business comes from US.
  7. I’m not able to get the data on how much of revenue does the Indian IT companies generate on pure IoT services in order to compare it with Mindteck.

Disclosure: Was tracking more than an year. Invested recently after a huge fall from peak. Belongs to the high risk category in my portfolio. This is not an investment recommendation. Please do your own research before investing.

Moderators, This is my first topic. Please delete this thread, in case if it doesn’t abide by any forum rules.


Thanks Whipsaw.

Just going through the PPT a cpl of qns:

  1. why the huge ebitda decline yoy in last qtr?
  2. what % Rev comes from IOT?


  1. EBIDTA is down as OPM has come down significantly as highlighted in risks. But management has given a double digit OPM guidance going forward.
  2. Company is not disclosing any split-up of revenue between their divisions / IPs / Products. They have given only split up of revenue across geography. Again within US, no disclosure on clients (existing / new).

Thanks Whipsaw. At this point, based on disclosures, looks like a “story stock” at best…

Yusuf Lanewala, Chairman and MD of Mindteck, interviewed Live by ETNOW - April 05, 2016

Q4 results
Revenue at 79.36 Cr - YoY 2.4% up, QoQ - 7.8% up
Profit at 2.12 Cr - YoY 79.4% down, QoQ - 35.37% down.

There was a tax credit of 6.74 Cr in Q3.

If we look at overall FY16.
Revenue at 311.63 Cr - YoY 2.35% down
Profit at 25.92 Cr - YoY 35% up

Dividend announced at 1 / share

EPS stands at 10.25
P/E : 9.58

Commenting on the company’s year-end results, Yusuf Lanewala, Mindteck Chairman and Managing Director, said, “During the course of the year, we gained traction in the Smart Cities and Internet of Things (IoT) space. Innovative efforts from our R&D division led us to the laudable win of the Smart Grid Project, a research initiative to improve power distribution and energy management, for the Chandrapura Sub-Division of Bangalore Electricity and Supply Company (BESCOM) in collaboration with IIT-BHU and CSTEP (Center for Study of Science, Technology & Policy), and funded by the Department of Science and Technology (DST). We also started developing new state-of-art solutions in the video analytics and data analytics space to complement existing smart cities offerings. To further strengthen our IoT offerings, we joined the Intel Internet of Things Solutions Alliance. Additionally, we successfully made inroads into the wearables segment.”

Other notable highlights for the year include:

  1. Established a subsidiary in the Republic of the Philippines.
  2. Designed and developed the electronics and firmware for the Infinity computer— a modular, safe and eco-friendly device created to be “the perfect STEM learning experience” by One Education, a not-for-profit organization in Australia.
  3. Commenced Phase IV of technical advisory and big data work on ‘The Atlas online’ for The Center for International Development (CID) at Harvard University.
  4. Collaborated on a Wi-Fi Thermostat for Smart HVAC Control which involved the redesign of an Iconic product for IoT-based cloud connectivity.
  5. Developing a car infotainment system for a new client in the automotive domain.

Read more at:

Checkout the glassdoor reviews. Doesnt seem very promising -

Don’t think glassdoor reviews correspond to business performance. Most of the IT companies have ~3.x including Accenture, Infy, Wiipro etc. Mindteck has got 3.1.

Smart Parking Solution by Mindteck


Mindteck - Q4 result presentation:

ROHM and Mindteck Develop Breakthrough Wi-Fi Thermostat and Lighting Control Technologies. Enables Seamless Integration of IoT and Next-Gen Sensor Networks

1 Like

Annual Report 2015-16

Mindteck to be listed in NSE from Aug 2.

Mindteck (India) Ltd has informed BSE that National Stock Exchange of India Limited (NSE) has approved the listing and trading of Mindteck (India) Limited shares effective from August 02, 2016.

They claim to be a IoT/ Cloud/ BIg Data company but the job openings doesn’t state anything related to that. Looks like a pureplay software consulting company on Java, .Net. Nothing to do with Big data or cloud

@mukundrv Not sure of that. Check it has openings on Hadoop etc. (Big Data)

Most of the popular IoT frameworks are in Java. Apache, Eclipse etc have their IoT frameworks available in Java.

Having said that Mindteck hasn’t disclosed anything on the revenue split up between regular IT services, IoT, Big Data, Cloud, their own IP etc. so this is a big unknown as stated in the risks above in the 1st post.

Mindteck Joins the GE Digital Alliance Program

Read more at:

Just because the IoT frameworks are written in Java, we can’t correlate a Java requirement with an IoT business case. Eclipse is just a development environment which cannot be related anything to IoT.

I am an engineer who work on Cloud, Big Data technologies and a high level analysis doesn’t seem to convince me that they are involved in Cloud , Big Data or IoT.

In addition, the hadoop requirements mentioned in the above link is based out of Pittsburg but a high level search do not see any visas acquired in the name of Mindteck last year (I might be wrong here as they might operate through a different entity). But I do not find any presence of the promoter group or CXOs in US except 1 or 2, most of them are in India and doubt how could they be running a business in US.

If you aren’t a promoter, I suggest to be cautious on this stock.


@mukundrv Eclipse “IDE” is a development tool that you are referring to. But Eclipse org is much more than that. IoT is one of the areas they contribute. They have lots of popular frameworks and projects in IoT. It provides open source implementations for IoT protocols such as CoAP, ETSI SmartM2M, MQTT or LwM2M.

Check out

Check out MIndteck IPs in IoT - Ignite-ILS(Intelligent Lighting System) and Ignite-EMS (Energy Management system). They have done some implementations in middle east and also got some local government projects as well. They are part of lots of global alliances. But they are still long way to go.

I agree with you on some of the risks that you have highlighted. That’s why I have stated it in disclosure that it belongs to my very high risk part of the portfolio and accounts only for small portion.

Disclosure: I have exited Mindteck and all my high risk stocks to increase my cash %.