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The company on December, 2012 announced that its wholly owned subsidiary DecisionOne Corporation signed an agreement with Vitera Healthcare Solutions to assume infrastructure and support operations for Vitera clients nationwide. Under the terms of the agreement, DecisionOne will provide comprehensive technology services and support with its technology expertise and highly credentialed national field service personnel. Glodyne Technoserve Ltd said, this is a multi million deal spread over multiple years. This partnership enhances Vitera`s ability to maintain industry-leading service levels while infusing expertise and optimizing resources dedicated to product innovation and development.
Moreover, Firstcall Research was so bullish on Glodyne Technoserve that it gave a target of Rs.438 in its April 19, 2012 research report. Firstcall said: “Glodyne Technoserve Limited is a leading Technology IMS company that has built rich experience in the geographies it serves while constantly exceeding delivery expectations of its customers. The company’s innovative delivery model helps to synchronize seamless and cost-effective solutions with assured quality to its valuable clients. It follows the best business practices that enable companies to operate more efficiently, have better ROI and help them focus on their core business. Glodyne leverages its comprehensive India and North America services footprint along with ITIL best-practice frameworks, tools and methodologies to improve availability and efficiency of its customer's Infrastructure assets.” “In India, Glodyne has built strong skills and capabilities to provide path breaking array of technology IMS services on a managed services model in high growth sectors. Glodyne with its experience, expertise and strong IPRs has acquired a leadership position in this space. Glodyne has a strong alliance program with technology market leaders in IT Products and Services who complement its expertise in Technology IMS outsourcing and projects business. Glodyne’s success is attributed to its unique business model, a sharp organizational focus and the strength of its people. At the current market price of Rs.384, the stock is trading at 7.67 x FY12E and 5.27 x FY13E respectively. Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs.50.06 and Rs.72.83 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 71% and 47% over 2010 to 2013E respectively. On the basis of EV/EBITDA, the stock trades at 3.22 x for FY12E and 2.45 x for FY13E. Price to Book Value of the stock is expected to be at 2.21 x and 1.54 x respectively for FY12E and FY13E. We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs.438 for medium to long term investment".
Similar was the call from Unicon Investment, who were also very bullish on Glodyne Technoserve Limited (GLTL) and recommended accumulate rating on the stock with a target price of Rs 440 in its March 30, 2012 research report.
THE QUESTION THEREFORE IS: HOW DID ALL THESE REPORTS WENT WRONG? Where is all the money coming from operations going? How is the sales falling, drastically Q-o-Q? Can the regulators, take a look at Glodyne Technoserve Ltd (Rs.8.25), on the behalf of the shareholders?