8k miles software.....Will its dazzling ascent continue

Will it's dazzling rise continue?

Views solicited

 

Seems like operator play. The rise has been epic. PE is just out of this world. One bad quarter and this will come spiraling down. Pretty risky bet.

 

In the same line, what are your views regarding Kellton Tech. I think its the future 8K Miles.

 

The problem with 8k Miles and Kelton Tech is that their business model is not understandable by lay people. 8k Miles is said to be a "Cloud solutions provider with expertise in minimizing your IT Spend by securing and migrating your business to the Cloud". I don't how many others can do the same activity. The same can be said for Stampede Capital. But over 2 years, the stock is up 1800%!. It also has big institutional holding like Sundaram and DSP Mutual Fund.

 

@Carl Icahn while I do understand the technology stack that they are planning to work on. The valuations doesn't justify buying into them right now. They just don't have that much exposure to big projects, lack of competition and margins to command such ridiculous valuations. I find them risky bets. Just one bad quarter is what it will take to bring them down to earth, I feel.

 

@dineshkapoor27 I agree. The risk far outweighs the potential gains. Best to stand on the side and watch how the story unfolds.

 

8th october is Qtrly results.... Watch that space.

 

8k miles up 15% today

 

8K MILES SOFTWARE SERVICES LTD (please avoid this stock )

Software CMP : Rs. 1625

Face Value : Rs. 10
Market Cap : Rs. 1750 Cr.
Equity : Rs . 10. 34 Cr.
52 week low : Rs. 479.60
Book value : Rs.33.59 Cr.
EPS : 0.68

Promoters reduce stake nearly 4.32 % last year

Last 5 years /sales / net profit

2011 / 1.12 Cr. / 0.34 cr. (34 lakhs)

2012 / 2.03 Cr. / 0.05 Cr. (5 lakhs)

2013 / 3.04 Cr. / 0.05 Cr. (5 lakhs)

2014 / 7.22 Cr. / 0.09 Cr. (9 lakhs)

2015 / 12.39 Cr. / 0.70Cr. (70 lakhs)


With out fundamental values CMP :1625 /- is it worth buying ???

Infosys PE Ratio : 21.84
TCS PE RATIO : 26.31


8K MILES SOFTWARE SERVICES LTD is it worth buying ???

 

There seems to be a school of thought which says 'yes'. I am not sure though and this despite a few CTO's friends of mine having loads of good things about say about their domain.

Honestly IT isnt my area of expertise. But company's in the cloud space do attract high valuations even in the US. That's the reason I bounced it off in here.

Their focus seem to be the health sector. Has been on an acquiring spree. Management confident of 100% YoY growth in coming 2-3 years

I havent committed much to this but am happy i did it about 6months ago so am at crossroads - unsure if i should hold or exit and whether valuations are stretched inspite of the management's bullishness.

I simply looked at this company because its one of the earliest to release its qtryly results and hey i like that because usually this mean that company's financial control and reporting framework is robust.

 

Jezz its hit 20% up.

So surely its either a 'punt' or 'fwd looking valuation' with no linkage to historic performance

 

@Sachin pathak I think the valuations will remain high relative to the other "services" companies. But these valuations are tough 100s of PE! All it will take is one or two bad quarters. The cloud companies do demand good valuations, I agree. But these valuations are multiples of times more than the proven track record companies. I think you can enjoy the ride till the time when markets are up and companies are quoting decent growth, but any downgrade in earnings will cause a lot of pain.

 

Yes dineshkapoor27 ,
I find some major wrong signals in this company ... i studied other parameters also , in my view it is a Big balloon...

 

8K Miles Soft

(Be careful )

Quarterly Result
08-Oct-2015 (today )
source : moneycontroldotcom

 

Major cloud solutions provider 8K Miles Software reported over 100 percent rise in its net profit and revenues on Thursday. Speaking to CNBC-TV18, Chairman and Chief Executive Officer Suresh Venkatachari credits this growth to clients added in the pharma and the healthcare space.

He is hopeful of long-term growth in the market on account of companies in lifescience and healthcare shifting to cloud services.

On the surge of receivables, he says the company has an accounts receivable (AR) of 65-70 days, which is generating sufficient cash flow.

With companies like Amazon, Microsoft and IBM adapting cloud services, the company, Venkatachari adds, has an enormous growth opportunity going forward.
Below is the verbatim transcript of Suresh Venkatachari’s interview.
Ekta: It has been another good quarter for you all in terms of your total income growth; it is up around 21 percent on a sequential basis. Can you however fill us in terms of more parameters of what it is comprised of for example the verticals, how did each vertical grow? We do understand you have a strong pharmaceutical segment how many clients did you all add what kind of revenue generation did you see from these clients?
A: We added a couple of clients in the pharmaceuticals sector and a single client on the healthcare which lead us to good growth on our cloud.
The cloud market has started getting adapting very well. In fact yesterday the CEO of General Electric (GE), Jim Fowler said it is no more that cloud is not attesting or probability, it is going to be inevitable. So everyone is moving huge on the workloads of cloud and GE has about 48 data centers and they want to reduce it to 4 data centers and move the to the cloud over years.
However, same thing is happening in the pharmaceuticals and life science sectors, we see a very strong adaption is happening on the cloud, healthcare is a little slow but more players are really looking at more of a secured cloud offering where you can build analytics. So we do see a great opportunity in both life science and the healthcare where you will be able to see long-term growth in the market and we are bidding heavily on life science, healthcare and in fact we recently acquired NexAge which has started integrating into our overall growth plans, which will help us to grow in the next few quarters too.
Anuj: Your Profit and Loss account looks good no doubt about that, but I am just looking at some balance sheet items and that raises a bit of concern. Your receivables have gone up in six months from Rs 28 crore to Rs 56 crore. That is more than your profit growth. If you could tell me why there is jump in receivables and going forward is that going to come down?
A: Quarter-on-quarter we are growing. We did Rs 61 crore this quarter and the previous quarter about Rs 50 crore, so currently our receivable is somewhere around 65-70 days period which is really comparatively healthy in the market because there are various phases of delivery in the cloud and so it is pretty much under control. We are generating sufficient cash flow and in additional to that, basically we used to have a longer average receivables couple of years back but we reduced significantly to now around 65-70 days maximum.
Ekta: Coming back to your revenue run rate, are you seeing enough visibility to achieve that over 100 percent growths that you saw in the entire fiscal of FY15 in FY16 as well?
A: Unfortunately we do not give guidance, finance forecast guidance but however what I see is a great trend in adaption of the cloud. That makes us really excited about the opportunities what we see in the next not only the 12 months even 24-36 months, we see a great opportunity. All these companies are now leading into the cloud. If you see, 8k Mile was betting on cloud from 2009-2010, a very early stage, whereas many of them were not adapting.
However, I saw recent news from Accenture and AWS tying up with about 16,000 people on the services of the cloud and Rackspace is actually dropping their data center and moving into cloud model with Amazon and Microsoft is building a lot of data centers for the banking and finance in terms of different locations. We see a great opportunity. And what we hear from our partners like IBM, Microsoft and Amazon that great adaption happening. So these are the parameters which lead us to a good growth.
We see there is a very good pipeline coming in; many customers are very receptive to the cloud adaption than before. There is no more education for us, before we used to educate our customers, why should you move to the cloud. Now they are really looking at what kind of platform you are able to offer, how secure it is and how can it enable to automate my overall process in terms of provision in the new cloud, infrastructure or supporting it, manage it operate it, manage it. So that is a big change that we are seeing.
Recently, one licensed customer that we won is growing very significantly. We started as one division but now it is expanding and also globally we are supporting them with our Cloud platform, so it really is a great opportunity that we see. However, when we implement these kinds of things, other competing pharmaceutical licensed customers also approach us because everybody wants to move away from the data centers models and want to build analytics. So we see a good pipeline in that aspect and general cloud adaption is really very good.

 

great! This should follow up with a rally!

 

now today my assessment is come to reality ... today current " 8kmiles " stock fallen to Rs. 1440 (-18.42 %)

 

today 8kmiles balloon blasted .............

 

In last one month, Tata Global V/s. Tata Coffee

 

Btw today's close was 2148..... ~ 50% up in abt a month and back to it earlier dazzling levels