New intelligent players including two foreign names have become some of the major shareholders during last quarter. They can accumulate further.
Three Top government institutions are major shareholders of this company
Dr SENTHILVERL has increased his share percentage massively. Who knows he can go above 10% or 20%/ Just like HOPL, TYRE, CWM,, HOPL, ECL and SEMB in the past. . He like tech companies.
Long-term debt has come down massively from Rs, 209,525,000 to Rs. 34,850,000.- What a massive improvement?Finance expert Mr Mangala Boyagoda is doing find job there. First step in the rebuilding the company to the next level. They are reshaping their finance intelligently
Bank overdraft has reduced dramatically.
Current asset has increased significantly. Positive working capital. Current asset equal to twice the current liabilities. Company will not go bankrupt.
NB: WARREN BUFFETT DOES NOT LIKE DEBT
Warren Buffett does not like debt and does not like to invest in companies that have too much debt, particularly long-term debt. With long-term debt, increases in interest rates can drastically affect company profits and make future cash flows less predictable
Now let us talk about some other new hidden stocks in CSE.
http://print.dailymirror.lk/index.php/news/front-image/27772-trilingual-high-tech-sri-lanka.html
President outlines his vision and mission for new era
President Mahinda Rajapaksa in his address to the nation yesterday after taking oaths for his second term said the country must move towards a future generation that was trilingual.
He said he hoped to raise the level of computer literacy to 75 per cent and make the future generation true heroes of technology in the modern world with the names of Sri Lankans topping the list in the fields of science and technology. The president said our generation could achieve this victory by making our country the knowledge hub we intend it to be.
http://www.sundayobserver.lk/2010/11/21/pol05.asp
We are also in the process of developing economic hubs, naval hubs, space, a knowledge society and IT literacy rates at school level
http://www.treasury.gov.lk/docs/pressrelease/pressrelease-ibm-20100811.pdf
Information Technology vital for Economic Growth
Deputy Minister of Finance & Planning Dr. Sarath Amunugama
With the end of the thirty year cancerous war, Sri Lanka is emerging towards a rapid growth in all sectors and the contribution to stimulate the strategies, adopted by the government to achieve her targets, the information technology could accomplish a massive service said Senior Advisor and the Hon. Deputy Minister of Finance and Planning Dr. Sarath Amunugama.
http://www.xe.com/news/2010-11-19%2005:32:00.0/1534409.htm?c=1&t
However, the government is expected to announce some
concessions for outside investment in the agriculture, tourism,
ports, fisheries, information technology, and business process
outsourcing sectors.
http://www.moneyreport.lk/fullstory.php?nid=201007241248538362
Sri Lanka's PC House will become more profitable after IPO:experts
Group bottom line expected to grow 20 percent year-on-year, despite declining margins
NDB is projecting a forward PE ratio of 10.23 times earnings in 20011, 8.72 times in 2012, and 7.48 times in 2013.
"
If you take a P/E ratio of 15 but the growth would be about 20 percent so the P/G to growth (PEG) ratio is much less than one," Senaka Kakiriwaragodage, assistant vice president at NDB Investment Bank told LBR.
"
I think that for a tech company which is supposed to take a boom in the next few years that will be a very attractive valuation
Business Diversification
PC House group is the one of the main dealers in Sri Lanka for Dell computers. The other is Softlogic Computers which is also planning an IPO.
Institutional sales account for about 55 percent of total hardware revenue, while the rest is split between retail, spare parts, upgrades and printing toner sales
However the firm says hardware sales are booming and is expected to grow exponentially in the next few years which would expand its present large customer base further to mitigate business risks such as supply and demand shocks.
"We are not depending on one single customer or maybe only for few customers, we are into many segments like corporate sector, public sector and retail business, which is broken into rural and the city sales," Rishan said.
Product wise also we have a portfolio of maybe 30 to 35 products of distribution so we will not be affected if there's any turbulence in supply, we have mitigated that risks also."
Greenwich Lanka Limited an IT physical infrastructure, systems integration and business application company was bought over by PC House in 2007.
The firm says its relatively new BPO (business process outsourcing) and KPO (knowledge process outsourcing) business units would increase future margins while existing hardware business sales are expected to grow substantially.
Its BPO business unit, Procifinity Limited has already signed a contract with the department of registrations to digitally document certificates as part of the government e-governance initiative.
The group is planning a 100 seat BPO operation in Jaffna, to provide accounting and back office services to the international market.
About 300 million rupees of fresh capital raised form the IPO will go to Procifinity Limited which is 90 percent owned by the PC House
Outsourcing data centers which is something relatively new in Sri Lankan which we believe will happen in a big way here," Sarath Wickramanayake, Director at PC House said.