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|
|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.