Company has released a press release today (as per below) indicating that it will buy 9 lakh shares through Suchir chemicals pvt ltd (promoter entity) within next 1 year for price below 500 (subject to cooling period of next 6 months).

http://www.nseindia.com/corporate/Letter_to_NSE_071215_07122015142811_098.zip

As per calculation this amounts roughly to 1.7% stake, which means the promotor ownership may increase from ~72.2% to ~73.9%

I would request u to go thru the company's annual report and also find out abt the promoters background. The promoters hv been in technology business since 1999. One of their major clients earlier ws citi bank. They were into similar business earlier bt on Web platform so assuming "every corporate r engaged with some IT partners" even they will hv a set of customers who will give them revenues. Their numbers growing at 35%p.a. tells us tht. Some part of it is attributable to acquisitions ofcourse. As per ur suggestions will try to find out what is unique abt the products (whether there is any) and revenue from top 5 clients as well. Good to know ur views. Thanks for ur assessment.

Hi Basumallick,

Agree with your view on its products being a standard offering by major IT players. Thats why I wrote that entry barriers r few. This is a sort of business like earlier what used to be making websites and its maintenance, which after some number of years many ppl/companies will start doing it. But only those survived who had long term contracts with many large and mid sized corporates and eventually they took away piece of larger pie.

In my view, the whole mobile related IT industry has started becoming advanced in last 5 years (Saksoft also changed its business model to mobile related IT company from 2011). Hence definition of "experienced player" might be a little different here because an experienced IT player might not be experienced in Mobile related IT technology and thus there is a space for companies like saksoft and kellton. Also my comparison was not with the large IT giants but with the fragmented market of mobile IT service providers. So for eg if a mid sized bank or for tht sake any corporate has to give its mobile technology contract than Saksoft fits the bill perfectly, because it has a complete infrastructure in place. I think I used words "large corporate" which was misleading, which I hv changed to mid sized now.

Anyways I think everyone will look at same company differently and thats y there will be a buyer and seller at the same time in the market. So lets see how the mobile story plays out with Saksoft.

All the business segments seem to be standard offerings from the major IT players. How would such a small company be able to fight the big IT companies? Do they have any differentiated service or product offering?

Saksoft is NOT a experienced player nor a market leader. They are a small and insignificant player in this market. Hence, my question.