Trigyn Tech - Multibagger potential

Trigyn Technologies is a 1000 people IT company with offices in USA (Washington DC, New Jersey, Massachusetts), Germany and Switzerland. Development centers****in Mumbai and Bangalore. For more infocheck,


CMP: Rs 23.35 Market cap: 66 crores BV: 34 FV: 10

Cons revenue FY13: 351 cr (FY12 279 cr) Net profit: 15 cr (FY12 10 cr) EPS: 5.33

Cons revenue H1FY14: 215 cr NP H1FY14: 15 cr EPS: 5.2

Debt: ZERO Cash on books: 7.5 cr


Originally incorporated in 1986 as “Leading Edge Systems Ltd”. IPO in year 1995 at Rs 50 per share. Bonus issue of 1:1 in year 1998.Name changed to “Trigyn Technologies Ltd” in year 2000.


Company on a growth track:

1). Consistent business performance (check company website for assignments bagged in 2013)

2). Consistent growth in financials during last 20 quarters

(FY08 cons revenues 119 cr, NP 7 cr; FY13 cons revenues 348 cr, NP 15 cr)

3). Company achieves 150% increase in net profit on consolidated basis for quarter ended June 30, year 2013

4). Recruiting technical staff aggressively (check the job sites)

Inflection points:

1). Mr Homiyar Panday designated as President of US operations in May 2003

2). United Telecoms acquires the company in July 2006

3). Mr R Ganapathi appointed as Chairman and Executive director in April 2012

4). Extension of UN contract in August 2013 (approx 100 million USD contract)


1). Some time in the year 2000, the share price of Trigyn was Rs.3000

2). Stock price 6.50 in APR2013 and 26 in JAN2014

(already a 4-bagger stock for people who bought in April 2013)


Trigyn is a turnaround story on a stable footing. Experienced promoters, competent management, consistent performance and steady growth. Mostly ignored,deeply undervalued, under researched company with robust fundamentals. US and Europe recovery, weak currency, IT sector bullishness are positives for thecompany. A strong potential multibagger.

Disclosure: Trigyn tech is a part of my core holdings

I bought the same at around Rs. 400 and saw it zooming to 4800 during tech boom. Did’t sell and sold it at around Rs. 18(Eighteen) few years later. These are laggards who have not been not able to scale when IT was at it’s peak. IT is tough business now so you can imagine their fate.

There stories will come and fizzle every few years…it can not be core of anybody’s portfolio(unless you have some insider information).

Dear Sir,

That could have been around the dot com boom of year 2000 or around that time.

How ever, this is a turnaround story.

When United telecoms acquired(almost 50%)this company in 2006 this company was almost finished. How ever, from 2006 to now, it over 5 years. The management have done a commendable job of turning it around. And 5 years consistent growth, cannot really be called, a flash in the pan.

My view is, at CMP range 22 - 26, this could potentially provide multibagging returns. Whether it really fulfills its potential or not, only time will tell.

Also, for any stock to provide multibagging returns, apart from a multitude of factors, the price of acquisition is one of the most important. That is one factor that determines the magnitude of returns.

I tried my best to find any negative factors on Trigyn with some extensive research on the net, and also via my old friends in the IT industry. Almost could find none.

If someone, seniors, new members or others can come up with any SPECIFIC negative aspects with regards to this stock, much appreciate if you could share it.

Another point, being under-researched and ignored by the wider market is also an element of a stock being multibagger. How ever when this comes on the radar of vast majority of people, it will have lost the potential to give multibagging profits.

Kind regards!!

Another observation!! A more subtle kind.

As per AR2013, the stated objective of the company is annual revenue of USD 500 million by the year 2015(probably FY2016). They have now reached 100 cr+ revenue run rate per quarter. And did it consistently for last 2 quarters. That would be approx 450 cr per year revenue. 600 cr (100 million USD) annual revenue is not too far.

Even if the company successfully manages annual revenue of 200 million USD (and appropriate net profit); this stock will be in completely a different orbit.

For a Trigyn kind of a company, to reach from 100 million to 200 million USD, almost no Capex would be essential. So will remain a debt free company.



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while going through various comments i have come across following data written by USHAKRAJ.KINDLY DIGG A LITTLE BIT MORE AND LET US HAVE MORE CLARITY ON THIS

**ushakraj **

As reported in the Auditors report "The comapny has given interest free unsecured loans to 6 (interested) parties amounting to Rs235,078,494. This amount has been provided as doubtful of recovery to the extent of Rs.238,939,443. This is very worrying as no details of the loan is available and as to whom and under what circumstances it was given as unsecured. It also says there are no stipulations as to the repayment of the loan. The report states that the company has accumulated losses exceeding 50% of its net worth as at the end of the financial year. There is an amount of Rs.44.98 crores shown as contingent liability since 2012. There is no mention of this in the Auditors report. Latest performance figures are not known. May be doing well going by share prices. Nevertheless, the above factors are a cause for concern in the absence of a satisfactory answer.


I think the key here would be to understand the business model of the Company and its sustainability.

People with IT background may help us understand more of the business of the Company. IMHO in absence of any niche capability, competitive advantage, smaller IT companies will find it difficult to sustain/ grow.


Dr Mehul,

Let me first respond to the 2nd part of the query addressed below.

Trigyn in its earlier form (before mid 2006 take over by United Telecoms) was first incorporated as LES (Leading edge systems). LES acquired eCapital solutions (Bermuda) and its various subsidiaries in multiple countries. Then name was changed to ‘Trigyn’(TTL) and thereafter acquired TTL Applisoft Inc, a US company.

All this was done between 1986 and 2000, with an intention of making this another big IT company. Then the dot com burst happened, 9/11 happened followed by the slowdown in the US which impacted IT sector very badly. Trigyn (the earlier avatar) never recovered from that.

During this time, it ended up with a multitude of subsidiaries all round the place in multiple countries; Bermuda, US, Germany, Mauritius, etc

Now FAST FORWARD to 2006; United Telecoms acquired the company (a little less than 50%)

Apart from reviving the company, strengthening it and growing it; I think one of their major endeavour was to clean up the past mess. Closing down of all the subsidiaries, which I think they set out to do around 2007.

This involved write offs; diminution / decline / provisions to be made by the Indian parent for all the subsidiaries, most of them loss making with substantial contingent liabilities.

As of March 2013, the subsidiaries already liquidated are Applisoft Inc, Trigyn tech UK, eVector Inc. The ones where liquidation is under process are eCapital Bermuda, Trigyn tech Europe, eVector India.

As a part of this whole exercise, as specified on page 47 of the FY2013 AR, Provision for diminution was made for 603 cr as against the required 649 cr.

Balance would be around 45 - 46 cr.

In conclusion, this seems to be a major clear up of past mess; which the company has taken 5 - 6 years to complete.

With hope that with this last 45 - 46 cr will be the last of the past (mess).

In which case, margins and net profit will improve and re-rating will be possible.

Kind regards!!


**ushakraj ** Link:

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simply great digging

clearer conviction


Thank you, sir!!

Hi Hemant, You are presenting interesting ideas on the forum.

How did you discover this stock? It is not a much discussed one.

What was the price you made entry?

Nani sir,

My focus area is multibaggers. And catching them much early in their journey. So from that perspective it is an advantage that a stock is not much discussed one. By the time it comes on everyone’s radar, the initial (and most profitable) journey would be over.

About Trigyn, in specific; I have spent 10 years of my life in the IT industry. So there was a natural curiosity to find a potential multibagger here.

Found Mindtree at 380 (around the time Ashok Soota resigned), how ever could not capitalize on it (bought at 400, sold at 440; again bought at 480, sold at 520)

Then, prepared a short list of small cap IT companies: 3i infotech, Subex, Four soft, Zenith, Sonata, Moser Baer, Acropetal, Bartronics, etc

Amongst all of them, I could finally zero down on Trigyn tech (as a potential multibagger). There is also ‘Blue star infotech’; how ever still not sure if there is multibagging potential.

I first bought Trigyn at around 25 rs. Then continued buying in small chunks between 22 and 26. Now my holding average price is around 24.

Kind regards!!




Since you have worked in the IT industry, you may be able to throw some light on the Company’s technical capability. For me it looks like the Co is into generic businesses (Staffing, ERM, Managed services, Application outsourcing, government serv etc).

If you look at financials of the Company, the cash from Operations is negative over last 3 years . ( . Further the Company has not declared any dividend during its lifetime.

United telecom appears to be a diverse conglomerate ( It remains to be seen, what is the Company’s focus on Trigyn.


( Link: ) ( Link: ).

Nadkarni saab, Appreciate your questions.

You are correct. On the surface, Trigyn is an IT services company; generic business as you mentioned. How ever if you go one level deeper, there are certain significant and specific strengths.

UN (United Nations) is a big revenue stream for them. An extension of contract for 5-years is very significant, that too, at the small base that this company is operating. I remember reading an interview of the Chairman, that this could be around 100 million USD over 5 years. That gives a robust revenue platform for the company.

If you look at their clients in the US, it is quite evident that several state level organizations, municipalities, public services, universities are their clients. Most of the contracts are 2 - 3 year contracts (which could be extended). That is no mean achievement.

All this was done in the last 5 years, which were extremely tough for the global IT industry and several small companies got wiped out.

By the way, Sir, from the overall IT industry context, Infosys, Wipro, HCL tech, Mindtree, iGate, Zensar are all generic IT services companies.

Niche companies in India, you can count on your fingers; Polaris, Oracle India (erstwhile iFlex), Persistent, Nucleus software

About financials, Q-o-Q; please refer to my earlier response to Dr Mehul;

Since United Telecoms took over this company in 2006; it has been continuously working on clearing up the mess of the previous ownership/management; It is to their credit that they have also managed to grow the business, both topline and bottomline in the last 20 quarters

At some point in time, if it becomes clear that all the past mess is cleared and done with, overall financials will be significantly enhanced

Thanks and Regards!!

Trigyn Tech touches 52-wk high @ 29.90.

Incidentally this is also the 3-year high.


Trygin tech has hit the upper circuit for 3rd consecutive day! Are valuepickrs chasing this stock? :wink:

Would be great if somebody like Ayush or Hitesh can provide their views on Trygin Tech at CMP

Hemanth CA,

Please review guidelines for initiating new stock ideas. We have received several complaints by Members.

Those seen to be consistently putting up one-sided posts with no mention/emphasis on the Risks/Downsides are violating ValuePickr guidelines. Consistent repeated peddling of "Multibaggers"is frowned upon here at ValuePickr … there are other places for that. Here we would much rather focus on business excellence.

Anyone initiating a thread has great responsibility of presenting a balanced picture! Please stick to presenting facts, avoid using superlatives/over-hyping unproven companies. Let the business performance speak.

Please be forewarned - Those not adhering to ValuePickr guidelines may be debarred from posting privileges.

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Trigyn Technologies Ltd has informed BSE regarding Press release dated March 20, 2014 titled “MTM Corporate Star Award 2014 for Trigyn Technologies Limited for best training programme for employees/associates.”

Hi Hemanth,

Are you still following this one. It seems to have technically broken out after three steady quarter results. One of the cheapest IT stocks available at throw away valuations. On to of this company is staring at good growth opportunity in-front of it in the next 2 years.

Might head towards 70 in the next couple of months.

Would be glad to know your comments.



Hi Hemanth CA,

Congrats for your conviction in the stock. Market seems to be taking notice of this stock and your conviction is playing out well so far. I looked at the story at earlier levels and couldn’t find anything great in the business but improving numbers nevertheless. Could you please share clients details for this company and source of following info. in your earlier reply?


"UN (United Nations) is a big revenue stream for them. An extension of contract for 5-years is very significant, that too, at the small base that this company is operating. I remember reading an interview of the Chairman, that this could be around 100 million USD over 5 years. That gives a robust revenue platform for the company.

If you look at****their clients in the US, it is quite evident that several state level organizations, municipalities, public services, universities are their clients. Most of the contracts are 2 - 3 year contracts (which could be extended). That is no mean achievement."

I found this, I dunno what to make of it? how seriously should we take this…

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