MRO-TEK Rs.84.

[sarv...@gmail.com]

* The company is a one-stop shop for entire range of networking
products and solutions like copper fibre converters , bandwith manager,
VDSL and switches.
* The company has alliances with Extreme Networks for switches,
ZyXEL for high end leased lines modems and Alvarion for wireless radio.
* The customers of the company include BSNL, VSNL, Bharti, Satyam,
Dishnet, LIC, SBI, IBM, SAIL, Hutch, BSES, Reliance, Compaq, UTI, Star
News, etc.
* The company has unveiled its next Gen products e SONA 100, e SONA
8 and FCAT foe service providers and corporates. The product has been
successfully used by Hathway in Mumbai.
* For FY05 the company achieved a sales of Rs.122 crores and net
profit of Rs.4.15 crores resulting in an EPS of Rs.2.03 (Rs.5 FV).
* For 9 months ended 31.12.05 the company achieved a sales of
Rs.116 crores and net profit of Rs.12.51 crores resulting in an
annualized EPS of Rs.8.16 (Equity Rs.10.22 crores).
* As at 31.03.05, the company had total borrowings of Rs.13.40
crores including working capital and had cash & bank balances of
Rs.17.26 crores on that date. In last quarter the company repaid all
its debt and became a zero debt company.
* For FY 06, the company already paid an interim dividend of 25%
which establishes improved profitability and liquidity at the company's
end.
* For FY07, the company is likely to achieve a topline of Rs.210
crores and bottomline of Rs.28 crores translating into an EPS of Rs.14
per share. Hence, share is ruling at P/E of 6 based on FY 07 earning.
* The company is likely to report a growth of over 30 per cent in
next three years and a growth of over 40 per cent in its bottomline
.Hence, share is available at a very attractive PER and even book value
at 31.03.06 will be Rs.42 per share.
* The share is ruling at P/BV at 2 times, Mkt.Cap/sales at 1 time
(FY 07) and PER of 6 (FY 07 earnings) against industry composite PER of
above 20.
* The new products would substantially improve the financial
performance and share is an excellent bet at Rs.84 which could double
in next 12 months.