Monday, March 29, 2010

ABM KNOWLEDGEWARE LTD - opportunities unlimited

Computerization of all government offices and projects will be a reality by not so distant future. So the scope for e-governance is very vast in a country
like India. For a certain extent this sector of
IT may be called as recession proof because the
spending is coming mainly from state and central
government,local bodies and autonomous government
institutions. ABM Knowldgeware is a pioneer in
this field.Company came into this field in 1998
and empanelled as a Turnkey solution provider for
E-governance project by Maharastra Government,in that
year.In 2000, It successfully implemented e-governance
project for various govt institutions like Housing
Department Mantralaya, Municipal Corporation of
Greater Mumbai, Thane Collectorate..etc.In 2003 ,ABM
launched ABM MAINet® in Kalyan Dombivili Municipal
Corporation(KDMC) as the first comprehensive e-governance
solution for Urban Local Bodies in India.In ,2005 company
entered into North India through a major order for complete
automation for Engg Dept of Municipal Corporation
of Delhi. In 2006 ,Govt. of India, Ministry of Urban
Development has short-listed MAINet® for empanelment
for implementation in Municipal Bodies all over India
after detailed process of evaluation of Functionalities
and Product Quality at an all India selection process.
Company also spread it wings beyond India and completed
various projects for some emirates of UAE.During this
period company won a number of prestigious awards from
various agencies.Lastly it won NASSCOM’s ‘Emerging 50 Leaders’
award in 2009.Company’s products include
ABM MAINet®(Municipal Administration Information Network),
ABM CARE® (Software for Grievances Management and Time
bound Redressal), ABM MOIS 2000® and CRM for Power
Distribution Utilities . ABM, in consortium with
HCL Technologies, has successfully implemented SAP HRMS
(Human Resources Management) in KDMC in June 2008.
In 2006 company implemented ABM AQUA® at Municipal
Corporation of Greater Mumbai (MCGM).Earlier in 2006
ABM Knowledgeware along with Siemens Information
systems Ltd (SISL) and SAP have bagged an e-governance
contract worth Rs 40 crore from the Municipal Corporation
of Greater Mumbai (MCGM),which is one of the most
ambitious e-governance projects in India span over 5 years.
Later the company taken over management of some key
large ERP projects from consortium partners and the
cost involved for such a takeover causes for a reduction
in profit in last year,but expected to improve in the
years to come. Moreover, successful execution of such
large projects alone will help the company to pre-qualify
for large projects in future.

Company has posted a turnover
of 40 crore and a net profit of 6 crore in last year .
For the nine month ended Dec .2009 ,it posted 27 crore
turnover and a net profit of Rs.5 crore and expected
to post an EPS of Rs.7/- for the full year.Out of
the 10 crore equity ,promoters are holding around 60%
and another 21% with large share holders .
P.E player Indiaman fund Mauritius which is a sub
account of Warburg bank has taken 3% stake in ABM in December qtr.
Company is also paying dividend for the last 3 years.
In nutshell ABM is a pioneer in a field with huge opportunity
trading at a P/E of just 6 ,can be bought by long
term investors. Possible delay in payments because of
the nature of its customers is  the only major concern.
CMP is around Rs.45/-


  1. Hi,

    In case you happen to track any of following stocks do share your views

    Spice Mobile
    Andrew Yule
    Paper Products
    Murli Industries
    Future Capital
    Punjab Nat Bank
    Western India Shipyard
    Gitanjali Gems
    Gujarat Ambuja Exports
    KingFisher Airlines
    SREI Infra


  2. Out of these,I am following only spice mobile ,paper prod and srei infra.Spice mobile already published last month,paper product is 'HOLD' and Srei infra 'BUY'

  3. Dear Sir,

    What is your view about Nakoda Ltd? Is is good stock for investment? Let me know your suggestion.

    Kumar G

  4. Dear Mr.Kumar

    At present I am not following any of the textile stocks.

  5. Hi VP,

    Srei jumped today by 11 points. Your revised views on the scrip would be highly appreciated.




Tweet TopOfBlogs