Book Value: - 46Rs
FACE VALUE: - 2Rs
INTERIAM DIV: - 40%
LAST CONSO LIDATED E.P.S:- 16.25 Rs (148.63Cr) ----on 2F.v
9 MONTHS CONSOLIDATED E.P.S:- 23.97 Rs (217.31Cr) ---- on 2F.v
Expecting 85Cr in Q4. FOR FULL YEAR 290-310Cr (33.50e.p.s)AND 100 %DIV OR 1.1BONUS
Currently it is trading at 78Rs. EXPECTING 125 Rs IN 20DAYS.
Currently it is trading at 78Rs. EXPECTING 125 Rs IN 20DAYS.
ABOUT:-Geodesic operates in the high-growth areas of instant messaging and VoIP. The
company has a large roster of well-established clients. Geodesic derives most of its revenues from
developing instant messaging platforms/services and licensing them to enterprises as well as retail
users (directly or indirectly) under the ‘Mundu’ brand. The company’s products (Mundu ICE
stack) cater to clients ranging from portals and publishers to telecom operators, mobile handset
manufacturers, system integrators and even retail consumers. Geodesic also licenses its instant
messaging platform to mobile handset manufacturers and telecom operators, thus providing it with
sustainable revenue streams, with scope for expanding margins.
Geodesic won a deal from Idea Cellular in India, for Internet radio services on a revenue sharing
basis. This makes for better risk-sharing as downloads or logins to access Internet radio on the
mobile would be clearly measurable.
The company has also launched its messaging services in Nokia and Sony Ericsson Smartphone
handsets and has an agreement with players such as BenQ. Mio Digi-walker, a key player in the
mobile GPS navigation space, is another client. The company also recently joined the Blackberry
ISV alliance to offer its services on smart phones. This should provide further revenue
opportunities.
The client base for Geodesic also includes portals such as Naukri, bigadda.com, Edelweiss Capital
Ltd, First Global Stock Broking, Business Standard and Dialog Telekom. As players constantly
upgrade their Web sites and offer more cutting edge-services, this client base offers long-term
revenue visibility for Geodesic.
The company has launched an instant messaging platform for the iPhone and may be well-placed to
capture a share as and when Apple allows third-party software platforms on its phones.
The company has also developed voice over Internet protocol (VoIP) products to work mobile
phones and desktops, for PC-to-PC calls. VoIP is also an ever expanding market providing for
cheap communications. It already averages 60,000 minutes a day.
Agreement with ITI Ltd to promote Geodesic’s products (such as its Amada 10k Simputer) to cater
to various State Government E-Governance projects in India and with Glodyne Technoserve as
part of Glodyne’s solution for Public Distribution System for various States in India have also been
recently signed. The Simputer has an integrated Smartcard reader/writer which can be used for
identification, sharing and security.
The company has also forayed into publishing by acquiring the Chandamama children’s magazine
brand. The subscriptions have doubled in the last two years after the acquisition.
With its Telugu, Hindi and Tamil versions available online, this may help capture regional audience
as well. An increased subscription may lead to increased ad revenues. Plans are also afoot to launch
a full length animation film.
Key risks to this recommendation are technological obsolescence and competition from entrenched
platforms such as IBM’s Lotus Same time.
The Board has approved the proposal of buy back Company's USD denominated Zero Coupon
Convertible Bonds.
Chandamama has signed MOU with Techno park based Toonz Animation Indi Pvt. Ltd. for
producing a 70 minute, full-length animated feature film
Geodesic has announced a buyback of up to 25 per cent of the paid-up equity share capital
(maximum of Rs 109.8 cr) from the open market, at a maximum price of Rs 75.
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