Great job ayush and rohit.
Two documents give most of the insights one needs to have about the business and management.
A few things which come across are;
If the trend of outsourcing continues and accelerates in the industry, (currently at 2-3%) then there could be a huge addressable market. By getting into relationships with the biggies, MPS is ensuring that if and when the market opportunity explodes, it is there with all the right armaments to tap the opportunity.
After reading the book OUTSIDERS, and looking at the things MPS management did, it gives me a de javu feeling.
Turning around an ailing business, effective utilisation of cash (high dividend payout), dilution when the time is right to build a warchest for potential acquisitions etc point to a very astute management. It has till now had a stellar track of wealth creation and could continue to do so.
The economic characteristics of this company are fantastic. All it needs is some strong organic growth and a few smart acquisitioins. How these things pan out would decide the kind of returns generated hereon.
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