Saturday, July 7, 2012

KALE CONSULTANTS LTD - BUY


 

 

 Kale Consultants is a mid size IT company focusing in aviation ,Travel and Tourism Sector.What is important is the solid performance of the company even in a very tough environment in these sectors.It make possible by creating a niche in offerings. In 2011 ,Spain based  AccelyaHolding World took over the control of the company.Accelya is a pioneer  in airline software and BPO service for the travel industry for past 30 years.This company having operations in 104 countries across the world and handling the settlement of  40% total ticket sales through travel agents. With the support of Accelya ,KALE is offering  comprehensive solution to the financial and decision support needs of an airline.Many of the renowned airlines like Gulf Air,Air India,Etihad,Jet Airways,Continental Airlines,Air France,Delta,Air New Zealand ,South African Airways..etc are the customers of Kale Consultants.Company’s offering in Passenger Revenue Accounting (PRA) Solutions includes – REVERA ,PRISM,APEX and AMBER.Kale’s other offerings for this industry is for Audit Services,Financial Management,Business Intelligence,Cargo Service..etc. Accelya made an open offer @ Rs.172 for 20 % stake and thereafter a buy back up to a maximum price of Rs.160/-..To align with the accounting period of parent company , Kale’s FY is  from 1st July to 30th June.For the latest March quarter Company posted a turnover of Rs.54 Cr and a net profit of Rs.8.7 Cr .As I mentioned above , even in this tough situation in the user industry company could survive and grow and emerge as a leader. Now with the help of a well experienced patron with operations in almost all countries around the world  KALE CONSULTANTS is expected to emerge as a winner going forward.At CMP of Rs.126/- ,buy it for medium to long term.

Posted by VALUEPICK at 8:38 AM
Labels: ,

32 comments :

  1. AnonymousJuly 7, 2012 at 5:34 PM

    thnx for your insight into the stock(s), Can you pls tell me your views on dish tv and Rajesh exports

    ReplyDelete
  2. JiteshJuly 9, 2012 at 12:05 AM

    Sir, I always follow your recommendations and thanks for the same...but please tell me i have Onmobile Global @ 40 Rs and Aries Agro at 105 Rs...I can hold them for long term..these both shares are also suggested in your blogs..

    ReplyDelete
    Replies
    1. VALUEPICKJuly 9, 2012 at 5:39 AM

      Jithesh

      Actually I have recommended Onmobile earlier ,but now it is known that the MD itself has committed a financial fraud and an internal inquiry is going on in this matter.At present depth of this matter is not known but this fact may negatively affects its performance in short term.Company's products having good future but stock performance depends on the board's ability to handle this situation.

      Delete
  3. कृष्णाJuly 9, 2012 at 12:09 AM

    Sir,

    First of all I want say THANK YOU for sharing your excellent analysis on stocks. I am reading your blog for a couple of days and realized that you are doing a great job.

    Can you please share your opinion on Crest Animation? Can it be a multibagger in near future?

    Also please share your opinion on AMTEKINDIA and WABCO.


    Thanks,
    Krishna

    ReplyDelete
    Replies
    1. VALUEPICKJuly 9, 2012 at 5:41 AM

      Dear Krishna

      I am not a fan of Amtek Group.WABCO already recommended as a BUY at Rs.1277/- and now it is a HOLD for me , BUY on any dip.

      Delete
  4. AnonymousJuly 9, 2012 at 8:25 PM

    please clarify whether theses two companies are under the same management, vadilal enterprises and vadilal industries then why they both are doing the same business. please comment. ramamohan

    ReplyDelete
    Replies
    1. VALUEPICKJuly 10, 2012 at 3:52 PM

      Same management but not same business.One is producing and other is distributing

      Delete
  5. AnonymousJuly 9, 2012 at 11:23 PM

    Sir,
    Your recommended sugar stocks are now in much demand. Do you think the cycle has just started as we hearing more of less rainfall which would benefit the sugar companies?
    I have Bajaj H, Balram pur chini ltd.

    You view on KPIT Cummins which is a well established IT company and Rajshree Sugar.

    Thanks for your wonderfull recommendations.

    ReplyDelete
  6. Haz et alJuly 10, 2012 at 11:17 AM

    hi,
    thanks a lot for your hardwork and guidance.
    i would be obliged if you would kindly throw some light on narmada gelatines, lumax autotech and hsil

    ReplyDelete
    Replies
    1. VALUEPICKJuly 10, 2012 at 3:53 PM

      Narmada gelatin already posted not tracking the rest

      Delete
  7. SANJAY HEMANIJuly 10, 2012 at 5:16 PM

    Dear Sir,

    I have gone through most of your articles/recommendation and and after long period of time it has given some kind of FAITH in you and that is why I am asking you that at present I have Rs 1 lac in spare and I want to invest in equity . I will be highly obliged for advising me how & where should i invest the same for MULTIBEGGER.

    Regards,

    Sanjay Hemani

    ReplyDelete
  8. VALUEPICKJuly 10, 2012 at 7:59 PM

    Dear Sanjay

    If you are a new investor in stock market better to take some time to learn about market rather than straightaway searching for multibaggers.Higher profit is always associated with higher risk and we should always remember when we expect multi fold return.

    ReplyDelete
  9. vishnuJuly 10, 2012 at 8:20 PM

    Dear VALUEPICk,

    I have made an investment in Aries agro at Rs81/- & Rs 114, levels because of the business model they have..When your recommendation for the same has come i got faith in this counter. For the last two years eventhough there is little appreciation i would like to go long in this counter.

    Would u suggest averaging at current price...or just hold..I would like to know any fundamental changes happen in this.

    please provide me with ur valuable advice

    regards
    vishnu

    ReplyDelete
    Replies
    1. VALUEPICKJuly 11, 2012 at 9:11 PM

      Dear Vishu
      Really a difficult question to answer.I also wonder why this stock is quoting at such a low valuation.Last year it posted an EPS of Rs.13/- on consolidated basis but it is trading with a P/E of just 4 and this Rs.250 crore company is trading with a market cap of just 80 Cr !.I believe market misunderstanding it as a fertiliser manufacturer (where price is controlled by government)and not realising it as a micro nutrient maker ( where price is not controlled by government.). Historically if any company continue its growth once market will identify it and give valuation.But,truly speaking I am unable to predict a time frame.

      Delete
  10. AmitJuly 11, 2012 at 2:12 PM

    Kale is indeed a good bet...However on the hindsight, once also needs to factor the returns the Company is getting on the products they develop vis-a-vis the development cost they incur for upgrading these products to sustain or improve profitability. In Kale's case, not sure they have made that effort to incur that level of development costs required to improve or even to sustain profitability. Like in any IT Company (in product development), there is a peak that every product achieves and from thereon there has be to continuous efforts (product development etc ) to sustain the profitability or else the possibility of the product/ software becoming redundant cannot be ruled out...

    ReplyDelete
  11. sumitJuly 11, 2012 at 7:50 PM

    hello sir, any idea why Aries Agro is falling ? and whether to accumulate at this levels

    ReplyDelete
  12. VALUEPICKJuly 11, 2012 at 9:16 PM

    Dear Sumit

    Pls refer the above reply on Aries

    ReplyDelete
    Replies
    1. sumitJuly 11, 2012 at 10:18 PM

      thanks VP ji...and yes u may b correct ...that mkt is misunderstanding Arise...even wrost thing ki ..Zee Business had buy call on it last week ...saying that aries will benefit from rise export policy..

      Delete
    2. VALUEPICKJuly 12, 2012 at 5:39 AM

      Rise export ? !!!!
      :)

      Delete
  13. JiteshJuly 12, 2012 at 3:13 AM

    Sir,

    Please suggest if i can continue to hold Adani power @ 102 Rs and buy greaves cotton or Granules India for 6-8 months horizon?

    ReplyDelete
  14. VALUEPICKJuly 12, 2012 at 5:38 AM

    Dear Jithesh

    As you are aware , sectors like power need many govt actions .But due to lack of sufficient support govt not in a position to take such decisions.So there may be an under performance from this sector for the time being.One positive chance is a fall in coal price on international level which is not related with our govt's control.So watch on these factors and take a decision on power generating stocks.

    Not tracking Greaves Cotton

    Positive on Granules India.

    ReplyDelete
  15. Ketan ShahJuly 12, 2012 at 7:56 PM

    Sir,

    Would you know, how to check the total traded volume (group wise such as B, B1 and A groups) on the BSE and NSE? Is it possible to check the delivery percentage?

    For NSE, I used to look at: http://www.nseindia.com/content/equities/eq_markettoday.htm

    But then they changed the site.

    ReplyDelete
    Replies
    1. VALUEPICKJuly 12, 2012 at 8:48 PM

      For NSe delivery data
      Use the below link

      http://www.nseindia.com/products/content/equities/equities/eq_security.htm

      BSE Delivery data of a single day is available in stock history ,from the below link

      http://www.nseindia.com/products/content/equities/equities/eq_security.htm

      Delete
    2. AnonymousJuly 12, 2012 at 8:57 PM

      both links are nse only

      Delete
    3. VALUEPICKJuly 12, 2012 at 10:18 PM

      Sorry

      http://beta.bseindia.com/bseplus/StockReach/StockQuote/Equity/Granules%20India%20Ltd/GRANULES/532482/Pharmaceuticals

      Delete
  16. Ketan ShahJuly 12, 2012 at 9:09 PM

    Sir,

    Thanks for your time for letting me know about this.

    ReplyDelete
  17. AmitJuly 13, 2012 at 12:25 PM

    Your take on Rossell India, considering it has been an underachiever for the last 6 months now..

    ReplyDelete
    Replies
    1. VALUEPICKJuly 14, 2012 at 6:48 AM

      Dear Amit

      Expecting better days for Tea sector stocks

      Delete
  18. pratik jainJuly 13, 2012 at 2:16 PM

    wht about natco phrama

    ReplyDelete
  19. SanuSeptember 19, 2012 at 11:46 PM

    purchased uflex,polyplex on 19 sep .now what to do and what i can expect in 1 months

    ReplyDelete

Subscribe to: Post Comments ( Atom )

Followers

Tweet TopOfBlogs