
	BARTRONICS INDIA LTD.

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SHARETIPSINFO >>Research Reports >> BARTRONICS INDIA LTD. (06-03-2009)

LISTING	NSE
CMP	Rs 63
52 WEEK HIGH/LOW	Rs 252.5/Rs47.4
FACE VALUE	10
PE RATIO	3.17
P/BV	1
BETA	0.9
MARKETCAP	Rs 204 crore

COMPANY PROFILE:
Company was incorporated in 1990, Bartronics is a Hyderabad based company. It provides solution in Bar coding, one of the oldest AIDC technologies, RFID, POS, Smart Card.
Company has different division looking after the respective business.
AIDC Division
RFID
SMART CARD
RETAIL-IT

MARKET OUTLOOK:
The AIDC industry is moving rapidly towards the use of RFID in a number of high-value and high-volume market segments. The RFID market is expected to jump from $1.4 billion annually this year to as much as $3.8 billion in 2008, according to a study by Allied Business Intelligence Inc. It is still in a nascent stage but there are several factors, in addition to dropping chip prices, which are driving the growth of RFID as an enabling technology.

REASON FOR INVESTMENT:
Strong growth coming from its Automatic Identification and Data Capture (AIDC) Solution business.
Strong growth in Smart Card business.
Currently company earning from telecom sector is from SIM cards. The 3G cards will open new growth for the company.
Company is likely to get order from Banking sectors for which it is currently going through Visa-Master certification. The process is expected to be completed in six month.
Lower raw material cost to increase the operating profit margin in the coming quarters.

KEY CONCERN:
Global economy slowdown to hit the top line and bottom line.
Higher interest, depreciation and tax impact hitting the bottom line of the company.
Company has FCCB exposure so the declining Rupee-Dollar exchange rate is the concern.

SHAREHOLDING PATTERN:

	NO.OF SHARE	% OF TOTAL
PROMOTER	9618218	33.22%
INSTITUTION	4356205	15.03%
GENERAL PUBLIC	15003033	51.75%
GRAND TOTAL	28977456	100%

FINANCIAL:

	31/03/05	31/03/06	31/03/07	31/03//08
TOTAL INCOME	18.18	29.47	64.45	183.37
EXPENDITURE	-14.88	-21.6	-44.8	-136.09
OPERATING INCOME	3.3	7.87	19.65	47.28
DEPRECIATION	-0.84	-1	-1.69	-3.18
PBIT	2.46	6.87	17.96	44.1
INTEREST	-1.08	-0.77	-1.34	-3.7
PBT	1.38	6.1	16.62	40.4
TAX	-0.36	-0.77	-1.31	-7.96
PAT	1.02	5.33	15.31	32.44

CHANGES IN TOTAL INCOME: CAGR IN TOTAL INCOME IS 216% IN LAST 3 YEARS.

CHANGES IN OPERATING INCOME: CAGR IN OPERATING INCOME IS 243%.

CHANGES IN NET PROFIT: CAGR IN NET PROFIT IS 315%.

KEY HIGHLIGHTS:
Top line growth remains strong; order backlog at Rs700 crore.
CAGR in Total INCOME is 216%.
CAGR in operating profit is 243%.
CAGR in Net Profit is 315%.

RATIOS:

		31/03/05	31/03/06	31/03/07	31/03/08
	EPS	0.351724	1.837931	5.27931	11.18621
	OPM	18.15182	26.70512	30.48875	25.78393
	NPM	5.610561	18.08619	23.75485	17.69101
INTEREST COVER		2.277778	8.922078	13.40299	11.91892

COMPARISION OF Q32009 WITH Q32008:

	31/12/07	%CHG	31/12/08
TOTAL INCOME	54.68	90.20%	104
EXPENDITURE	-45.12		-62.53
OPEARTING INCOME	9.56	333%	41.47
DEPRECIATION	-0.86		-8.47
PBIT	8.7		33
INTEREST	-0.67		-5.68
PBT	8.03		27.32
TAX	-0.47		-8.83
PAT	7.56	144%	18.49

KEY HIGHLIGHTS:
Q3 Total Income surged by 90% to 104 crore as compared to 54.28 crore in the same period.
Q3 Operating Income moved up by 333% to 41.47 crore as compared to 9.56 crore in the same period.
Q3 Net Profit surged by only 144% to 18.49 crore as compared to 7.56 crore in the same period. This is due to the higher interest outgo and depreciation analysis.

VALUATION AND OUTLOOK:
We maintain BUY on the counter. The company is expected to have CAGR of 63% in Top Line and 30% in Bottom Line over 2008-10E.So the company is available at 3.8x to 2010E earning. We value the company at 6x that gives the price Rs108. The increasing global economic uncertainty and its impact on the Bartronics are incorporated in the valuation.
CONCLUSION:
We expect investment horizon to be 12 months. Investor could be reaping at least 50% gain on their investment.

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