Katalyst wealth tweeted about EKC among their latest reco.
Posts tagged Value Pickr
E2E Networks Ltd – Listed small Cloud computing player (24-07-2022)
My recent summary about the company
Key points
- Cloud computing industry has strong tailwinds, growing at 20-30% per year.
- E2E targets SME companies and startups as customers.
- E2E Networks offers much lower cost offerings (2.5-3 times cheaper, the company claims) versus the ‘hyperscalers’ AWS, GCP, Digital Ocean and Azure.
- Revenue has been increasing every quarter since March 2020 from Rs 2.2 cr to Rs 4.9 crores now.
Details
- Investor Presentation (May 2022) is the main source of information about the company.
- 2021 Annual Report
- Screener page
- Began in 2009 before cloud computing had taken off. Developed its service for start-ups.
- SME IPO in 2018, which was oversubscribed by almost 70 times. Transitioned to the NSE main board in April 2022.
-
Shareholding Pattern (June 2022):
- Promoters: ~59%
- Tarun Dua (Promoter and Managing Director): ~55%
- Blume Ventures Fund: ~11.8%
- Airavat Capital: ~4.8%
- Holding of major shareholders has not changed much since the IPO.
- Promoters: ~59%
- Focus has moved to SMEs as opposed to the startup ecosystem.
- One of the big customers transitioned out in 2020, resulting in big loss of revenue. The client concentration since then has reduced. No customer contributes more than 3-4% of the revenue. There are nearly 2000 active customers now.
- R&D costs are lower since they target customers who pay less, and enjoy simpler user experience UI and UX. R&D costs are a major component of expenses in such companies.
- Depreciation is high because computer systems have a low lifecycle of around 3 years.
Pros and Cons
- Pros
- Strong tailwinds in the industry. India is traditionally a price-sensitive market and E2E’s offering is among the lowest.
- Track record of working with a number of startups while they were small.
- Minimal customer concentration risk now.
- Cons
- Less trusted player compared to the hyperscalers. Will be severely affected if the hyperscalers reduce prices.
- Change in technology may render E2E’s current technology obsolete and require them to make substantial investments which could affect the Company finance and operation.
- Competitive industry. Company may be severely affected in an industry downturn.
- Key person risk—may result in strategy bias.
Disclosure: Invested from lower levels.
E2E Networks Ltd – Listed small Cloud computing player (24-07-2022)
My recent summary about the company
Key points
- Cloud computing industry has strong tailwinds, growing at 20-30% per year.
- E2E targets SME companies and startups as customers.
- E2E Networks offers much lower cost offerings (2.5-3 times cheaper, the company claims) versus the ‘hyperscalers’ AWS, GCP, Digital Ocean and Azure.
- Revenue has been increasing every quarter since March 2020 from Rs 2.2 cr to Rs 4.9 crores now.
Details
- Investor Presentation (May 2022) is the main source of information about the company.
- 2021 Annual Report
- Screener page
- Began in 2009 before cloud computing had taken off. Developed its service for start-ups.
- SME IPO in 2018, which was oversubscribed by almost 70 times. Transitioned to the NSE main board in April 2022.
-
Shareholding Pattern (June 2022):
- Promoters: ~59%
- Tarun Dua (Promoter and Managing Director): ~55%
- Blume Ventures Fund: ~11.8%
- Airavat Capital: ~4.8%
- Holding of major shareholders has not changed much since the IPO.
- Promoters: ~59%
- Focus has moved to SMEs as opposed to the startup ecosystem.
- One of the big customers transitioned out in 2020, resulting in big loss of revenue. The client concentration since then has reduced. No customer contributes more than 3-4% of the revenue. There are nearly 2000 active customers now.
- R&D costs are lower since they target customers who pay less, and enjoy simpler user experience UI and UX. R&D costs are a major component of expenses in such companies.
- Depreciation is high because computer systems have a low lifecycle of around 3 years.
Pros and Cons
- Pros
- Strong tailwinds in the industry. India is traditionally a price-sensitive market and E2E’s offering is among the lowest.
- Track record of working with a number of startups while they were small.
- Minimal customer concentration risk now.
- Cons
- Less trusted player compared to the hyperscalers. Will be severely affected if the hyperscalers reduce prices.
- Change in technology may render E2E’s current technology obsolete and require them to make substantial investments which could affect the Company finance and operation.
- Competitive industry. Company may be severely affected in an industry downturn.
- Key person risk—may result in strategy bias.
Disclosure: Invested from lower levels.
Muthoot Finance (24-07-2022)
It is coming on track. Recovered a bit in last 2 weeks.
Muthoot Finance (24-07-2022)
This is because as gold prices increases, obviously the amount of loan they can disburse also increases.
Himachal Futuristic communication (24-07-2022)
I think this is negative for HFCL as it imports core of optical fiber.
Deepak Fertilizers and Petrochemicals (24-07-2022)
Deepak Fertilizers seen a significant uptick in FII holdings in last one year or so, which is against the general trend. Apart from this Net profit also significantly improved in recent quarters.
Stock recently broke out of 5 years high (~450) and currently trading near ATH.
Data: Screener.in
Disc: I am invested.
IZMO- bet on new technologies in Auto retail & defence (24-07-2022)
Directors of Hughes Precision Manufacturing Private Limited are Sanjay Soni, Jay Prakash Susheel Kumar Saraff, Ved Prakash Soni and Susheel Kumar Govindram Saraff.
Promoters of Izmo, Sanjay Soni & family.
Smart Contract Platforms Thread — Web3 Wars (24-07-2022)
And just like that Crypto markets have started rallying again as Crude Oil prices have moderated and Ethereum’s transition to Proof of Stake is getting closer.
At the Ethereum Community Conference in France Thursday, Vitalik shared his vision for future developments well beyond the network’s move to proof of stake. After the merge, which is very close “the only thing left to do is do a merge on Ropsten [test network],” Ethereum will then undergo further upgrades which he calls the “surge,” “verge,” “purge,” and “splurge,”
https://www.youtube.com/embed/kGjFTzRTH3Q
The surge refers to the addition of Ethereum sharding, which will help scale the base layer.
The verge will implement “Verkle trees” (a type of mathematical proof) and “stateless clients.” These technical upgrades will allow users to become network validators without having to store extensive amounts of data on their machines.
The purge: trying to actually cut down the amount of space you have to have on your hard drive, trying to simplify the Ethereum protocol over time and not requiring nodes to store history.
The splurge will include all the other fun stuff.