Its been a long time since ive been active in this thread. Basically ive been sprucing up my main business so havent had time for equity(or the money). Over the past few year ive managed to
- Shut down one office hence saving rent and employee costs. Adjusted my business model such that this has no negative effect on revenue
- Removed the need for all sales persons/employees and i only employ faculty now. Done this by making my sales pipeline fully digital + fully investing in the samsung ecosystem so i can handle all leads myself and i now personally hande all big ticket clients too. Somehow managed to maintain revenues even with this huge drop in operating expenditure
- Now that my costs have dropped by a huge amount my safety buffer of 2x yearly costs is almost met(i keep this amount in idfc savings account).
Basically, By end of this fiscal year my revenues should stay similar to pre covid… my yearly expenditure has falled by 66 percent… il have a safety buffer of 2 to 3x yearly expenses tucked away… and my business will be totally antifragile. Its been a long year and ive had to brush up on a lot of old skills(website design, digital pipeline for sales etc…)but its been worth it.
Now that im almost set there im turning my eye toward the market too. These days it takes a lot to get me interested (havent sold a share from my PF since last update and havent bought anything either).
One company that has got me really interested though is zensar tech…
The more i study it(concalls, presentations, balance sheet) the more i realise how underpriced it is(all the major stats ie roce etc, cash in hand, dividend policy, company communication).
Its the perfect combo of good business going through a 2 to 3 quarter downturn(employee costs). I still have time to buy it though since il be deploying cash around December. Also, i still cant quite figure out if we ll see much growth here OR if this is just a short term play to bet on employee costs cooling down and margins improving by end of this fiscal. The little bit of scuttlebutt ive done through the channels i have regards recruitment isnt promising though. Their recruitment practices arent really that great. So even if i had the cash id still wait a quarter or two before investing.
Im hoping i can get it at a 3 percent dividend yield though i will settle for 2.5 too(assuming 5 rs a share… dividend will probably fall to rs 4 this year since eps should be under pressure).
Other bets that still entice me but arent quite there yet valuation wise are manappuram and hdfc amc and oracle(at 7 percent yield) and adding to my position in intellect
Cheers. Expect more updates towards the end of this year
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