L&T Ultratech Demerger

Hi

This analysis was undertaken purely from an academic viewpoint to understand the L&T-Ultratech Demerger and the causes, for the MACR(Mergers, Acquisitions and Corporate Restructuring Course).

Disclaimer: This blog does not intend to disparage or denigrate any of the parties involved. All the analysis is done from an academic standpoint to understand the system deficiencies in the TakeOver Code of SEBI, based on news archives available.

You can download the Presentation and Report HERE

The Complete Valuation Model for Geodesic Information Systems Ltd.(NSE: GEOINFO) is attached.Click HERE to download.

The final recommendation report can be downloaded HERE

Standard Disclaimer: I do not accept responsibility for any loss that might be incurred, though I am ready to get a share of the profits(the notorious PIYP plan, Pay If You Profit).

On a more serious note, this report is prepared diligently, but I do not accept responsibility for the behaviour of the markets. Please use your judgement before investing.

...More to come soon!

Analysis of Midcap Software Stocks

Did an evaluation for Geodesic Information Systems(NSE: GEOINFO) as a part of the "Business Analysis and Valuation Course".

Still to achieve its fair value of 240(as per my estimates).Attached table gives the relative comparison of 4 companies in the same sector. A closer looks also reveals Cranes Software as an attractive buy.

For now, Buy GEOINFO with price target of Rs. 240.

Here are the outcome of the relative valuations:

				Summary of PE Ratios				Summary of P/BV Ratios
	FY			2006	2007E	2008E		2006	2007E	2008E
	Geodesic			30.0	17.1	11.8		6.4	3.7	2.6
	Cranes Software			17.2	10.1	6.0		3.7	2.2	1.3
	Subex Azure			57.4	37.1	23.9		5.2	3.4	2.2
	Financial Technologies			109.1	54.6	27.3		49.8	24.9	12.5
	Average of Comparative Companies Chosen			53.4	29.7	17.3		16.3	8.5	4.6
	Average of companies excluding FT			34.9	21.4	13.9		5.1	3.1	2.0
				Summary of P/CFPS Ratios				Summary of EV/EBITDA
	FY			2006	2007E	2008E		2006
	Geodesic			13.4	7.7	5.3		22.3
	Cranes Software			13.4	7.9	4.7		10.0
	Subex Azure			19.9	12.8	8.3		16.8
	Financial Technologies			170.8	85.4	42.7		119.9
	Average of Comparative Companies Chosen			54.4	28.5	15.2		42.3
	Average of companies excluding FT			15.6	9.5	6.1		16.4