Rakesh Jhunjhunwala, in the height of the technology boom, shunned technology stocks like Infosys and Wipro. However, he now seems to have developed a liking for them. He already holds a big chunk of Geometric stock in his portfolio.
Rakesh Jhunjhunwala bought 5 lakh shares of Compucom Software Ltd today at Rs. 25 per share for an aggregate consideration of Rs 1.25 crore.
The transaction appears to be purely a trading call for Rakesh Jhunjhunwala because the amount invested in the stock is not even worth the petty cash in his pocket. Rakesh Jhunjhunwala has gone on record that he is not going to touch any stock if he cannot invest more than Rs. 50 crores in it.
Compucom Software is a Rajasthan based company engaged in IT education. It has about 50 schools in its network. According to its website, it is a “pioneer in complete ICT-enabled education in government and private schools” and has “expertise in total technology solutions across Telecom, Finance, Energy & Utility, Health and ISV domains & Specialists in e-Governance implementations”. It is also into “wind power generation“. It also has a wholly owned subsidiary named CSL-Infomedia which is coming up in the digital media with two TV channels and a newspaper in print media. One of the TV channels is called “Jan TV“.
| Compucom Software Key Financials | |||
|---|---|---|---|
| (Rs cr) | Sep 2012 | Sep 2011 | YOY |
| Operating Income | 18.34 | 17.59 | 4.26 |
| Total Expenses | 8.52 | 6.58 | 29.48 |
| Operating Profit | 9.82 | 11.01 | -10.81 |
| Other Income | 0.57 | 0.43 | 32.56 |
| PBDIT | 10.39 | 11.44 | -9.18 |
| PBT | 4.12 | 3.94 | 4.57 |
| Adjusted Net Profit | 2.72 | 3.04 | -10.53 |
Compucom Software is run by Shubh Karan Surana, who is described in the website as a “seasoned businessman“, and his family members.
It’s hard to see what it is about Compucom Software that has attracted Rakesh Jhunjhunwala. Probably, the reference to “TV” attracted him after his recent foray into TV18 Broadcast. Compucom’s financials are dull and there is nothing in it that makes it an investment-grade stock. Even from a trading perspective, there is not much volatility or liquidity in the stock that one can profit from.
Compucom Software appears to be one more of Rakesh Jhunjhunwala’s whimsical buys. Probably, he was just sitting around with nothing to do and he spotted Compucom Software. “Hey, this name sounds interesting. Let’s see what it is all about“, he must have told his assistant, who must have scurried off to buy a token quantity. The stock will probably get unceremoniously dumped in a day or two.
sir i am bullish on his aptech ltd will cross 1000 by 2014 end ok holdit jaijinedra urs best well wisher
hiii rj sir…
pls send me compucom soft target and holding piriode……….:*
Agree Brother Arjun , Good notes. I unfortunately invested at 20Rs before looking at this site. But I don’t think the Ace Investor RJ would buy any stocks just like that and he must have interacted with the management too. as you mentioned in the another Article it may be in his watch list. but the Operator took it as advantage and dumping the stocks. Looking at the Company’s past record, it is constantly paying Dividend, 2 times issued Bonus also. Promoter is increasing the stake . I hope it may come up if the management is really focused on business. But i am wondering how and why the SEBI and stock Exchanges not bothered about beaten stocks. when the stock price increasing to certain level immediately they move to TT segment. and I can see every day there is a bulk deal in the counter like 50k , 1 lakh shares traded at one trade but why it is not informed to the Exchanges. your valuable view is appreciated . All the Best. Jrk.
This stock will turn out to be a multi-bagger. Vijay
Best Wishes 🙂