This report was published on 9th sept09 by CARE.Pl read and give your comments
CARE ASSIGNS ‘A’ RATING TO THE NCD ISSUE OF
AFTEK LTD.
CARE has assigned a ‘CARE A’ (Single A) rating to Aftek’s proposed Non Convertible
Debentures (NCD) aggregating Rs.50 crore.
Instruments with this rating are considered to offer adequate safety for timely servicing of debt obligations. Such instruments carry low credit risk.
CARE assigns `+` or `-` signs to be shown after the assigned rating (wherever
necessary) to indicate the relative position within the band covered by the rating
Rating Rationale
The rating is based on Aftek’s more than twenty year track record, comfortable
liquidity position, low debt levels and high interest coverage ratio, high profit margins,strength of Aftek’s technical team, diversification efforts undertaken and the company’s capacity to generate cash.The rating, however, is constrained by the dependence on uncertain export market,technology & product life-cycle risk and negative outlook of the industry in the shortto-medium term.
The ability of the company to launch its new products successfully and to effectively integrate its acquisitions remains the key rating sensitivities
Company Profile
Aftek was established in 1986 when it started with selling assembled computers and peripherals. Post 1995, after gaining substantial exposure in the IT industry, Aftek started offering software services which form more than 90% of its offerings. Aftek is mainly engaged in providing services in Information Technology, embedded systems,hardware engineering, testing services and solutions.
Aftek was traditionally engaged in the capacity of an intermediary between the
customer and the testing-services provider. The company has planned to introduce product/offerings of its own to the customers, which will help Aftek diversify its business and improve margins. Moreover, the new offerings are primarily aimed at domestic market which would not carry the foreign exchange risk posed by a highly export dependent revenue structure in the past.Aftek had reported a total income of Rs.392.54 crore and earned a PAT of Rs.80.94crore in FY08.
The gearing ratios of the company were comfortable as at end of FY07, FY08 and FY09 (provisional). Interest coverage has been fairly adequate due to strong operation margin and low gearing levels.
In FY09, (as per provisional results) Aftek reported a loss of Rs.6.95 crore due to diminution in value of investments of its subsidiary Arexera AG, which was notional in nature. Notwithstanding the above, Aftek’s liquidity position was comfortable as it had high level of cash balances.Analyst Contact
Name: Umeshpratap Singh
Email: umesh.singh@careratings dot com
Kiran Kulkarni left AFTEK in 1998 to start geodesic and now last month Dhananjay Kulkarni has left to start a IT company called Maven systems. activities mentioned in the site is as same as that of aftek ltd .even geodesic has similar aftek products.
That is correct; some leave after learning the game - to be a master of it. Some leave to realize their dream. We have to take our own decision ultimately. Thanks
The book value of the Stock is Rs 68.
It is surprising that it is trading at CMP of Rs 16
The Price to Book value P/B is 0.25 which is throw away price.
This simply indicates that 360 Crore is on paper.
kindly offer latest advice as stock has tanked 5 percent why meeting has been postponed to 30 dec.i am tempted by price but feared of like austral story they are also postponing meetings.
dear sodhan
dollar index is rising
market can tank in any moment before dec end
sit on fence
what you think about ESTER IND
volume is dried delivery percentage is allways 70 percent
this means what ever comes in market some body is absorbing
yesterday i collected some
narrow range trading
what is your opinion
any way be cautious in aftec
in both way it can go
ester is in chemical intermeditories business with very low P/E of 3.78 against ind P/E of 27 and analysts predict it as sign that co has no further future growth.similarily book valueis high 24.29 but market is not pricing it probably same reasons as above.so this stock is neither suitable for long term nor there is momentum for short term.traders are playing it in a narrow range .even if they are collecting it they take lot of time even months to spike the price.delivery percentage is also high when traders distribute the stock to public collected earlier in bulk at low rates.at present neither there is selling pressure nor buying pressure.as on date it is traders market better to stick even risky momentum stocks like suzlon ifci praj firstsource jaihydro torrentpower etc.for long time patience beaten down stocks like xl tele sterling bio wwil mic elec not bad.
dear sodhan
i agree with your views
ifci i kept it for long term no question of short selling insted i will aquire more for every dip
i am not holding praj but waiting for a dip
because i heard that christmas holidays are coming and dollar index will rise and this may lead fiis to sell part of their holding and enter again in the middle of january
any way sitting with sufficient cash
who can predict this stock market
market will be week in coming days
ester i cllected only 500 no aquision further because you are 100 percent correct
what about pipavav
| NIFTY 
