Porinju Veliyath Latest Bulk Deal stock purchase
Porinju Veliyath’s Equity Intelligence India Pvt. Ltd bought 55858 shares of Saksoft on the NSE at Rs. 267.34 each.
30% gain in two days
Saksoft surged 16% to Rs 315, extending Tuesday’s rally on the NSE after Equity Intelligence India Private Limited bought the stock in a bulk deal.
The stock surged 39% in two trading sessions from Rs 226 on December 26, 2016.
Why is Saksoft a good buy with multibagger prospects?
Saksoft is headquartered in Chennai. It has offices across the US, Europe and Asia and employs over 1,000 people.
Saksoft announced on December 15 the acquisition of Bengaluru-based DreamOrbit Softech.
Aditya Krishna, the chairman and managing director of Saksoft, revealed that DreamOrbit’s acquisition will help Saksoft to expand its offerings in the digital transformation space, particularly in the area of IoT or Internet of Things.
Saksoft wants to strengthen its capability in digital space. For this purpose it has been acquiring companies over the past few years.
A few years ago it acquired UK’s Acuma. Two years ago, it acquired a digital testing called 360Logica and now DreamOrbit. The IT market is changing rapidly. The deal sizes are getting smaller. There are a lot opportunities for specialised IT companies.
Saksoft gets over 90 per cent of its revenues from US and UK geographies.
The Company has invested heavily to boost its sales operations. With the new acquisitions, both revenues and margins are likely to get a boost in the future.
Saksoft also has a lot of opportunities in the UK because With Brexit has led to a lot of spending from the public sector space in the UK.
Saksoft’s margins are likely to improve from 15 per cent-plus to 17 per cent over next few quarters. The dollar strength will also help Indian IT companies.
On a consolidated basis, Saksoft reported total revenues of Rs 61 crore in the September quarter with net profit of around Rs 5 crore.
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Saksoft to buy 60% stake in DreamOrbit
Saksoft has signed an agreement to acquire majority stake (60 percent) in Bengaluru based DreamOrbit Softech.
With this acquisition, the Company will further strengthen its offerings in the digital space with special emphasis on IoT (Internet of Things).
The company has paid Rs 17 crore for acquisition of 60 percent stake in DreamOrbit, which has an annual runrate of Rs 35 crore.
What is DreamOrbit
DreamOrbit is a provider of specialist technology solutions for the logistics & transportation enterprises. It has offices in Bengaluru and the US. The company has 230 employees and works with 40 active customers. Almost all the revenues are offshore driven and it primarily to the US market with a small portion coming in from rest of the world.
DreamOrbit has been recognised in Deloitte Technology Fast 50 India for the past three years.
Aditya Krishna revealed that with the acquisition of DreamOrbit, the company has strengthened its offering in the IoT space. It has a presence in analytics, digital testing, cloud, mobility, application services and IoT and is in a better position to serve our customers in their digital transformation journey.
Saksoft’s margins are likely to go up after DreamOrbit Aquistion
Aditya Krishna said DreamOrbit’s acquisition will help Saksoft to expand its offerings in the digital transformation space, particularly in the area of IoT or Internet of Things.