Palred Technologies Ltd (Latest pick of The Ace Investor)

About The Company & Business
Palred Technologies Ltd formerly known as Four Soft Ltd is headquartered in Hyderabad.
The company is promoted by Mr Palem Srikanth Reddy (PSR) a former TDP politician who later formed his own party named Janapalana Party. PSR is also a well known social worker.
PSR was lauded by the local media for fighting against Reliance and the govt. in KG Basin allotment case where he was a petitioner.

The company basically into IT Services has last year ventured into Business of E-Commerce via its subsidiary.

The company's E-commerce venture is branded LatestOne.com, company also owns the domain named Deals15.com which it acquired earlier. In IT Services the company is providing E-Commerce website and software solutions.

The Ace Investor - Value Pick
PALRED TECHNOLOGIES LTD.
NSE: PALRED - BSE: 532521
Company listed on both NSE and BSE was trading at 21 on GTS day and now trading around 24 with a market cap of around 100 crores, Stock went down after touching 52 week high of 29.40 on Friday (24 Apr) due to bad results by Infosys.

Promoters hold 46.96% stake in the company, increased from 23.92% in Jun quarter.
FIIs have increased their stake to 1.89% from 0.44 in Jun quarter. Noted investor Ashish Dhawan owns about 3.44% stake in the company.
The company is debt and pledge free.

LatestOne.com is a portal mainly for smart-phone, mobile and tablet accessories such as Covers and Sleeves. The company has recently added a new section where all type of cables such as (HDMI, VGA, DVI, USB, Adapter, Charger and many more wide-range of cables can be purchased online by the tech-savvy Indians.

LatestOne.com has updated the website and recently added more categories such as Mobiles,Tablets,Computers,Laptops and more stuff like computing hardware etc.
This appears to be in the works as new products have not been added yet and the company looks aggressive about its plans which is a positive factor.

Major unlisted players like Flipkart Snapdeal have been cashing on the E-commerce boom in the country by raising huge sums of money from private equity investors. However these companies have been reporting losses due to the wide product portfolio they posses and the marketing and promotion cost they are incuring.

As Palred has reported to the exchange, LatestOne.com on April 15th confirmed to sell more than one lakh mobile covers which should be enough to give us an idea about the company's and the website's prospects. Point to note is that LatestOne.com went on air only on Nov/Dec 2014 and selling more than one lakh Mobile Covers in just under 5 months is a great achievement.

LatestOne.com has last week announced a tie-up with IndiaPost for pan-India cash on delivery services which will expand its reach to even rural India.

Almost everyday a new smart-phone is being launched, according to the data by International Data Corporation almost 81 million smartphones were shipped in the year 2014 and smart-phone sales are expected to touch 150 million units mark in 2015. The future growth of the smart-phone market is expected to be huge since there is a large base of mobile services users already and the smart-phone adaption is increasing. There are no IFs and BUTs in the fact that the future of smart-phones and it's proxy product Mobile Accessories which actually is a high-margin business is extremely bright.

The company's promoter are good and have been investor friendly. There is a share capital reduction planned up by the company which proposes to reduce the share-capital by 60% which means if you buy 1000 shares of Palred only 400 will remain in your account and the rest will be purchased back by the company at 16.50 and the funds will be credited to your bank account and the market will adjust the price accordingly. I think it should not be a big issue for the investors since there is more into the company's fundamentals than what meets the eye from reported results.

Palred Technologies which via its subsidiary is into E-Commerce has not reported its consolidated results for this FY after its E-Commerce venture started. Which is why you see ordinary financial performance and a P/E of 38. The company has responded positively to all our queries and have clarified that they will announce the full year consolidated results this quarter which means great revenue and earnings of unreported e-commerce to be reported all of a sudden? This is quite similar to how Intrasoft suddenly reported a sales boom in Dec quarter and the share prices shot up from Rs 40 to Rs 310 to trade at a P/E of almost 70.

E-Commerce is a sector where there are not too many investment opportunities and that is why they all are trading at rich valuations. Be it the 70 P/E of Intrasoft or the 70 P/E of Info-Edge (Naukri.com/Zomato.com/99Acres.com).

The E-Commerce boom is much talked about and it is good to find a opportunity to make a investment in this booming sector. Remember this company which directly is into E-Commerce is also indirectly into E-Commerce by selling web development, interface and softwares to companies which are looking to tap the E-Commerce.

There are some rumors too that MTR Foods (Giant in it's field) is planning to launch an online store and has purchased the software and services of Palred Technologies Ltd.

Technically too the stock is looking extremely bullish.

All in All i feel, this is one great opportunity for everyone who missed Intrasoft rally (40 to 310) and at 24 or even at 40 i would not hesitate to buy Palred Technologies and hold it maybe for some multibagger returns?

Note: The above is not a research report but information as available on public domain and it should not be treated as a research report.

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 Palred Technologies Ltd in my portfolio and hence my point of view can be biased. Readers should consult their financial advisory before any investments.

:Links:
PALRED website : https://www.palred.com/

LatestOne website : https://latestone.com

LatestOne.com One Lakh Mobile Covers News Link : https://www.thehindubusinessline.com/companies/announcements/others/latestonecom-sells-over-one-lakh-mobile-covers/article7104299.ece

LatestOne - IndiaPost Tie-Up Announcement: https://www.bseindia.com/xml-data/corpfiling/AttachHis/Palred_Technologies_Ltd_210415.pdf

MTR Foods e-commerce venture link: https://www.business-standard.com/article/companies/mtr-foods-plans-foray-into-e-commerce-by-q3fy16-115042000727_1.html

Latest share-holding pattern of Palred: https://www.bseindia.com/xml-data/corpfiling/AttachHis/Palred_Technologies_Ltd_SHP_M15.pdf


Note: The above is copied from the ace investor and i am posting this as my research.

 

Palred technologies is 20% up, super!!!!!

 

Palred tech is a jackpot here... BUY IT

 

ACE has added a new link which has screenshot of the company's email to him:

 

Palred down 5% today available at 27.. this is mouth-watering valuation i think right time to enter.

 

who is the ace investor

 

Punter... ;D

 

Palred Technologies Ltd (Latest pick of The Ace Investor) will turneye watering today soon

 

Guys just a word of caution be careful while investing in e commerce play just wait for the scalability because the revenue model of all these companies look little worrying even if you want exposure do it in sip mode don't put all your eggs it just my opinion only.

 

Offer Price / Consideration: The Offer price of Rs. 16.70 per fully paid-up Equity Share of face value of Rs. 5 each, is calculated in accordance with Regulations 8(1) and 8(2) of the Regulations (“Offer Price”), aggregating to a consideration of up to Rs. 16,94,99,990 (Rupees Sixteen Crores Ninety Four Lakhs Ninety Nine Thousand Nine Hundred and Ninety only), assuming full acceptance in the Open Offer.

 

WOWWW PALRED ON THE ROCKS.. SOMETHING COOKING!

 

Update by TheAceInvestor on his blogspot blog today.

BIG INVESTORS BULLISH ON PALRED TECHNOLOGIES LTD.

Friends with great proud i would like to inform readers that hugely followed value investors "Ashish Chugh and Porinju Veliyath" are BULLISH on Palred Technologies Ltd.

This is a great vindication to my blogpost dated 25th April 2015.
Palred Blog Post: https://theaceinvestor.blogspot.in/2015/04/value-pick-palred-technologies-ltd-gts.html

Ashish Chugh has tweeted:
Ashish Chugh @hiddengemsindia · May 26
At time when e-comm startups asking astronomical valuations,a listed e-com startup with "Proven"promoter available for free-0 debt-MCap=Cash

and Porinju Veliyath has purchased Palred from the open markets: NSE BULK DEALS: https://www.nseindia.com/content/equities/bulk.csv

 

Palred almost doubled!!!!!

 

palred showing on bse website as "suspended due to procedural reasons".

 

Palred is reducing its capital. For every 100 shares, 40 shares will be retained and for rest 60 shares amount of Rs 16.5 per share will be reimbursed.

 

The latest alexa global rank for palred is near 28000, up by 14000 in last 3 month which is a good sign. read here
https://www.indianhiddengems.com/2015/07/porinju-veliyath-bets-big-on-e-commerce.html