Current PE - 6.3
Current Price 76.
52 wk High - 252
Incorporated in 1990, Bartronics is a Hyderabad based company that started with providing solutions in Bar Coding, one of the oldest AIDC technologies, RFID, POS, Smart Cards working as AIDC division, RFID division, Smart Card Division and Retail-IT division in separate.
Booming AIDC/RFID/RETAIL/Smart Card Industry
The AIDC industry is moving rapidly towards the use of RFID in a number of high-value and high-volume market segments. The RFID market is expected to jump from $1.4 billion annually this year to as much as $3.8 billion in 2008, according to a study by Allied Business Intelligence Inc. It is still in a nascent stage but there are several factors, in addition to dropping chip prices, which are driving the growth of RFID as an enabling technology.
RFID is the emerging technology for tracking goods and assets around the world. It is indispensable for a wide range of automated data collection and identification applications across the supply chain. Whether you are a consumer, industrial goods manufacturer, a logistics company, a retailer, home sales / services provider or health care provider, Bartronics provide the complete end to end RFID solutions automating the entire business process.Bartronics is getting benefits from Govt technological initiatives. Railways is also looking at RFID implementation across trains in the country.
Bartronics has strong presence both in local and international markets. Bartronics has recently bagged order from singapore government for supply of 48,000 tags to Singapore housing development board.
It has also bagged order from DMC ( Delhi Muncipal Corporation) and expects huge revenue of 5000 crore in around 9 years.
Bartronics is expected to provide high CAGR in coming years. Good stock with healthy valuations.
Source : Company website
11 comments:
few things here.
1. JM emerging leader had exposure to Bartronics at nearly 8% a year ago. Not only this, JM`s other fund like contra and midcap also had significan holdings. Now all other funds of JM other than emerging leader has cut their all positions.
Even emerging leader has only 4% as of now. Please note that this emerging leader fund (infact all the JM funds) are the worst performing fund among all MFs. so if its being hold by a fund which doesnt do good is not a big positive. Infact I feel (by looking at JM`s portfolio) that emerging leader is not being managed. Long back some fund manager have bought bartronics in their portfolio and its lying there since then.
If its managed actively, can any one imagine its current nav of 7.xx Rs after 3-4 years of performance.... JM funds are only to cheat its investors..
2. if u see the holding of MF in last 6 months of SBI and HSBC fund, i dont find any other fund holding bartronics as of now. even sundaram small cap which was holding this since its inception , has cut it positions recently.
so the logic that all fund is buying doesnt go well.. please dont mis-guide fellow boarders here by putting wrong data.
A very simple thing i don`t understand, if this is such a good company (as many of boarder claim here) and its avaialble at such a low PE (many says its 3, many says its 4, few says its 5...etc etc ), why the MFs/FII/DII or any other interested investor not buying this stock.
Is it possible that, others in market doesnt know about this company and only we few are aware about this great story :).
No, its not.
i think its a well sold story in 06-07 time frame, but when market come to know about (which prob we dont know), they started paring off their positions.
I have heard on many channels (analyst tracking this) that there is a serious corporate governance issue here. I think thats why at PE of 3/4/5 also, no one is looking at it.
The only good news which i can sense in this stock is that promotors are buying at 232. but who knows, is promotors really buying or its just to spread the words in market so that, investors like us should keep holding it.. as there is a serious corporate governance issue in this company so i dont think, promotor will be buying it at all...
I have not seen any other broker suggesting buy on this other than Karvy. since both belong to hyderabad(karvy and bartronics) , so i really suspect behind karvy`s recomendation on this. there may be something cooking between them... remember the saga of satyam from hyderabad......
Bartonics & Sujana Group companies is going in Satyam way-- Sujana has inflated its profits -- see this news in Deccan Chronicle 1st Sept edition Hyderabad Sept. 1: The Sujana group companies — Sujana Metal Products Limited and Sujana Universal Limited — have admitted that they had presented boosted turnover figures to secure bank loans. This confession was made by the two public listed companies to strengthen their plea for exemption from paying tax on their second sales, which they said were merely “notional transactions”. The Sujana group is owned by Mr Y.S. Chowdary. deccanchronicle dot com/hyderabad/sujana-says-it-inflated-figures-549... ...
there is serious corporate governance in the company and off loading by the real owners with induction of proxies as promotors is alarming- a few facts to share with fellow boarders
1. The Whole time director / CFO T.Venkateshwara Rao is in the process of setting up an identical plant as Bartronics in the name of M/s. TVASTA ID India Pvt. Ltd and this is being done with the belessing of orignal owners of bartronics - For reasons well known - you may google on the same
2. After the disclosure that Indus Networks is a group company bratronics and the whole directors - S. Tirumala prasad & T. Venkateshwara rao as a strategic are planning using Indus Networks to milk the remaining honey what ever is left in Bartronics - WATCH the counter of Indus networks
3. The bartonics is expected to show case a centre of excellance to fool the investors
4.The managment is not is a position to service its hughe debt -- the reason being inflated sales & profits
5. There are legal suites against the company which the managment has not disclosed - Share your info,
Express your views on the following:
1. Bartonics qtr turnover is more than the turnover of the biggest smart card based company in India - i.e. SYSCOM Rs65Crs....? Pls share your views on NOTATIONAL SALES
2. The investments made bartronics in plant & machinery is to the tune of Rs.250Crs /- where as the best state of art manufacturing facility in India today was set up with an investment of Rs.50Crs by one MCT Cards promoted by Manipal group in Bangalore - sources IIT ...? Pls share your views on INFLATED INVESTMENTS
3. Bartoincs derived all valuations through RELATIVE theory ...? Pls share your views on MIS GUIDING OF INVESTORS
4. Diversion of investor funds by acquiring paper companies into associated companies involved in constructions etc ...? Pls share your views on MONEY LAUNDERING
5.The modus operandi of the promotors is to dupe the retail investors on FRAUD PROMOTORS
This board has helped many retail investors and must appreciate all blogers for their contribution .. cheers ...
Bartronics Promotor holding including corporates has come down form 36% to 26.9 % and out of this 60% of the shares are under pledge for working capital needs. ( 49.9 Lakh shares under pledge). The average price of pledge is around rs 190 . Suppose the share price goes down further to Rs 140/- , the lenders will sell the shares in open market as margins will not be sufficient and the scenario of Sathyam Computers may repeat. Please make a study by yourself as the data is available with BSE , NSE and company website . Issue is quite serious...........
New bloggers may not know the list of Sujana Group companies and some vanished like Charminar Granites , Saroh Infotek , SRG Infortek and a few battered stocks like Indus Networks , Sujana Universal , Sujana Towers etc . No funds have any holding in any of the group companies except Bartronics where only one fund has not made an exit. In addition there is a possibility of legal action against the promotors due to tax issue running into more than a 1000 Crores. Genuine investors may sell and shift to other scripts . Though bartronics is not involved in the tax dispute , it will go the Maytas way . When Sathyam scam surfaced , Maytas script was battered . Be cautious .......
All the funds made an exit in Jan 2008 between Rs 200 and Rs 250 , except Sundaram and JM . Sundaram quit in Dec 2009 and only JM is left . This is now purely operated script with placement done to Management is purely book transfer as they have not brought any cash but converted loans to equity and the placement proce of above Rs 200/- is only notional . This is the strategy of Sujana group. I expect the script to come to 120 levels .
There is no personal vendata towards bartroics etc, what we need to do is provide authentic information about the company and the segments of Operations. In Bartronics case there are a lot of JOOLS -
1. The Structured sales / Notational sales for turnover
2. Committing fraud through financial Media arrangements
3. Diversion of investors funds by acquiring fake companies
3. False projections
4. Hughe debt
If you notice the sujana group is well reputed for all the above and we as responsible bloggers should educate the retail investors of such modus operandis ...
A company is known by its people, and the people who are handling the affairs of the company are carring a repute - financial SCAMS, Cooked accounts,which can all be considered ok but the most important of all frauds is the one of NOTATIONAL / STRUCTURED SALES. How can a auditing company Deloitte catch this kind of fraud which is very complex in nature - PLEASE NOTE WITH SUCH KIND OF FRAUD`s THE COMPANIES FINANCIAL FUNDAMENTALS & CALCULATIONS OF THE COMPANY CANNOT BE CONSIDERED AND TAKING THIS INTO CONSIDERATION AFTER FEED BACK FROM INDUSTRY SOURCES, BARTRONICS REAL TURNOVER SHOULD BE AROUND ABOUT RS.60CRS TO RS.80CRS ONLY AND NOT AS PROJECTED. IT WILL BE HARD FOR AUDIT DELOITE AND THE MANAGMENT TO COME OUT CLEAN WHAT EVER MAY BE THE REASON...
Trimula: Thanks for your detailed information. Readers of this blog will get help from this information. Keep posting. Thanks.
Great stock
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