Big Shots: Porinju Veliyath’s latest pick is Vedavaag Systems

Kerala investor and portfolio manager Porinju Veliyath has bought a new stock today.

His latest pick spotted in today’s (03/01/2017) bulk deal is Vedavaag Systems Ltd.

Porinju Veliyath bought 150,000 shares of Vedavaag at 71.65 a piece. The stock traded only on BSE  closed at 71.65 having a upper circuit filter of 10%.

ABOUT VEDAVAAG: VEDAVAAG Systems India Limited is setup in the year 1998 and over the years evolved as niche player of e-governance solutions and citizens services infrastructure management.

VEDAVAAG went public in the year 2000 and bagged its first project in e-governance solutions along with ECIL in 2001 to execute a five year contract for computerized bus pass service for Delhi Transport Corporations and went on to bag similar contracts from many other state road transport undertakings in Tamilnadu , Karnataka and Maharashtra.

VEDAVAAG has built well acclaimed solutions for local body management – for municipal e-governance – covering Panchayats, Nagar Palikas and Municipal Corporations. VEDAVAAG bagged its first project to deliver local body e-governance solutions to Municipal Corporation of Delhi in the year 2003 and that paved way for VEDAVAAGs growth in to e-governance sector in a big way.

VEDAVAAG has set up over 2000 citizen services centers in Delhi , Haryana and Bihar to reach out to people. These centers have been set up under the Government of India Mandate to provide various G2C, B2C and B2B services. VEDAVAAG has launched various citizen services under the brand ABHEE and proposal is on to setup these centers are free standing units on franchising basis.

NATURE OF BUSINESS:                                                                                                            1. e-Governance services: The company continues to get good e-Governance orders for projects such as national population register and Biometric data collection for Aadhaar card generation and recently project from stock holding as Business Associate.
2. Knowledge center solutions
3. Citizen service delivery management
4. New services e-integration

FINANCIALS:                                                                                                                               For FY2016, Vedavaag reported revenue of 81.83 crores, net profit of 5.38 crores and EPS of Rs 3.81. At current price of 71.65 Vedavaag is at a P/E of under 19.

Currently Vedavaag is at a market cap of just Rs 100 crores.

Since E-Governance has become the theme in the markets recently post Demonetization I think Vedavaag is an interesting catch by Porinju sir.

Porinju had picked most of the other E-Governance stocks like Tera Software, Cosyn etc. at very low levels compared to today’s price.

DISCLAIMER:  Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

DISCLOSURE: It is safe to assume that i might have Vedavaag Systems Ltd in my portfolio and hence my point of view can be biased. Readers should consult their financial advisory before any investments.

 

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