Sunday, February 28, 2010

SPICE MOBILES LTD. – A COMPELLING BUY

Spice Mobiles is a BK Modi group company which makes ‘SPICE’ brand mobile handsets. Recent budget proposals and latest happenings in the company makes it a must buy for everyone’s portfolio. Finance minister’s proposal to reduce tax on imported components for making handsets is very helpful for a company like Spice Mobile. In another development company decided to merge the unlisted Spice Televenture (STV) with itself .Spice Televenture having interest in communications,technology and entertainment through its various arms. Now they decided to merge STV into
this company and make it a fully integrated player .
Spice digital is one of such arm
which is the second largest mobile Value Added Services provider in the country, reaching almost 500 million mobile subscribers. It has deployments across all the carriers and as of December 2009 had an active subscriber base of over 31 million mobile subscribers using its services. In the first 9 months of this current financial year Spice Digital has revenues close to 135 Crore with an EBITDA margin of around 30%. With the introduction of 4G technology internet services through mobile phones are expected to grow many fold.

The second company under Spice Televenture is Spice Retail. Spice Retail is the first national chain in the telecom retail business, retailing multi-brand mobiles, accessories, connections,content, and music and after sales service. With over 700 stores across 139 cities it is the second largest player in the organized mobile retail market. In the 9 months of the current financial year Spice Retail had revenues close to Rs. 500 Crore with an
average store base of 550 stores. In the last quarter ending December 209 the business turned EBITDA positive at the store level and the company expect the operations to achieve EBITDA breakeven in 2011.
The third company under Spice Televenture is Spice Labs which is a technology incubator operating in the rapidly growing area of mobile internet and applications. It is one of the leading innovators in the mobile internet space, spanning technology platforms, application stores and enterprise applications

All these four verticals makes Spice Televenture as an integrated player in telecom sector . On merger company name will be changed to Spice Mobility. Since Spice Televenture is already the holding company of Spice Mobile equity expansion is very low due to this merger ,which is really notable. In the financial front company already posted an EPS of Rs.6.36 v/s a loss in last year same period.Company’s future plans and already improved financials makes it a compelling buy at Rs.40/-

5 comments :

  1. Sir am holding vulcan engineers and duke offshore which were recommended by u previously can u please update me on the above ..
    Also u mentioned reg. Astec which has taken quite a beating..
    I would cite ..
    Please reply on jainsanam2020@gmail.com

    ReplyDelete
  2. I too have a holding in Vulcan engineers and spice mobiles. I would like to know what the short target on Spice mobiles is.
    I would also like to know if at all u follow the stock Southern online Bio- Technologies.(532669). I am very bullish on this stock.
    (acebhavik@gmail.com)

    ReplyDelete
  3. SHIRPUR GOLD 512289 CODE
    FOR LATEST UPDATE:
    KIRTISCRIPSCAN.NET

    Words nahi hai Thareef karne ke liye, hamara great guru sharma ji, kya bole ga Sacchi Niklega. great. great. great..

    he told only one thing. 100 shares of shirpur in comming years is equivalent to one Mercedes Benz.

    It is true. Shirpur is going to Rock.. Hold it. dont sell it. Its goldmine....

    ReplyDelete
  4. dear dear value pick

    is selan exploration a value pick at cmp?

    kindly cover this stock with your valuable views.

    thanks and many thanks

    ReplyDelete
  5. Dear Sir Kindly research on Shree Ashthvinayak Cinevision and Shri Laxmi Cotyson Ltd....

    ReplyDelete

Followers

Tweet TopOfBlogs