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Tuesday, July 21, 2009

Quintegra Solutions Ltd - Is It A Stock To Buy?

One of the visitors (Mr. Ramesh Hariharan, Director, Leadcap Ventures) asked me about Quintegra Solutions Ltd. a software development and services company and my take on it's present situation. I had published a report more than 1 year back on this site for this company when all of the things were going fine and company was zooming ahead.

A lot has happened since then. World economies have gone thru one of the worst financial credit crisis and slowdown. Many of the giants came on their knees. Small companies like Quintegra have also slowed down substantially & their growth came to hault with sudden jault.

I quickly went thru the Quintegra Solutions details thru various resources and what I found as on date is:

** Quintegra's sales turnover has consistently dropped from sept 08 quarter onwards consistently in the range of 20 - 30% every quarter

** Annually this has been dropf of ~50% in revenues

** Company has made a loss in quarters discussed above due to drop in revenues

** The biggest loss has been in quarter sept - dec 08

** Shareholding from promoters has been pledged in tunes of 68% of their holdings

** The biggest investor in company Roseburg Inc. has reduced it's shareholding from over 50% to only 18% as on date, perhaps this is the biggest reason of fall in price of this stock apart from losses made

** Rest of the investors are still invested in company

** One of the investors is Mavi investments, which is being said as operators and big investors driven investments firm, they are still invested!

Another factor to consider is, this was the most difficult time for all IT companies in India and overall world due to slowdown / financial crisis where companies came to standstill.

Quintegra also shown the negative growth in terms of revenues in this period.

In Dec. quarter company had sales turnover of 10 crores and loss of 10.5 crores!

This changed in March quarter with 8.5 crores sales and 2.6 croes loss. Company seems to be controlling it's losses and taking preventive measures.

Still this company has lot to do in terms of sales and profitbility but it seems this could turnaround with time and change in overall situation in world economy.

Company has good IT Solutions and products catering business sectors like hospital and health care, insurance, education and training etc.

There are chances that company could turnover in due course and so might turn the fortunes for shareholders as well.

One can take a bet and buy stocks from long term perspective. Who knows it could prove multibagger stock if everything goes well. Afterall stock market is all about calculated risks! More the risk bigger the rewards.

Comments are invited. Please do share If you know something more.

3 comments:

  1. hi i have a friend working here for quintegra chennai more than 2 years now. he says the company is planning to shutdown in 3 months time.stay away folks

    ReplyDelete
  2. There are serious amount of improper behaviors in handling and shifting monies/people within the organization behind PAC (one of its acquisition in 2007) filling for bankruptcy. Get away from this ASAP.

    ReplyDelete
  3. There are serious amount of improper behaviors in handling and shifting monies/people within the organization. Signs: PAC (one of its acquisition in 2007) bankruptcy. Get away from this ASAP.

    ReplyDelete

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