1. Having sold the most lucrative part of their business, Smartlink now has two products in its portfolio- Digicare (its division focused on repair and servicing of IT products such as IBM, HP, Dlink and others) and Digisol (active networking products ) and Digilite motherboards
2.Without getting too much into the specifics, The last two quarters reveals this - revenues are increasing , and net losses from the new businesses are decreasing. This is a good indication.
2.Without getting too much into the specifics, The last two quarters reveals this - revenues are increasing , and net losses from the new businesses are decreasing. This is a good indication.
3. The number of shares (equity) is only 3 crores. The interest the company receives each qtr on its investments (assuming cash is deposited in reasonable fixed deposits ) is about 7-8 crores. That itself would gives us an annualisd eps of Rs 8. The company, prior to the sale, had investments of 90 crores. Zero debts. At 45, it appears to be a good value buy. Regular dividend paying company.
4. The reports of its products have been good. It is now looking to enter new territory - contract manufacturing of smartphones and tablet computers for multinational players in India. It is already making indigenous motherboards and known for its networking products.
5. Finally, the promoter stake in the company is more than 65 %. It has constantly rewarded shareholders. Even a dividend of Rs 5 from its reserves per share of Rs 100 plus would translate into a div yield of 12 %. Great value and div yield stock at rates between 38 - 45.
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