10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Thursday, July 23, 2009

Spanco Ltd:-What the bsnl contract means for it?

Scripscan:Spanco Ltd(Spanco Telesystems)

Story:Recently,Spanco Telesystems was in the news for submitting the lowest bid for BSNL''s Rs 7,500-crore telecom infrastructure contract. The contract consists of providing telecom towers, power plants, generator sets and other infrastructure.In the case of BSNL contracts, the lowest bidder typically gets 50% of the total contract work, while the remaining half is equally divided among the second and third lowest bidders. According to a source, Spanco is currently in the negotiation phase with BSNL and the final order size is likely to be Rs 3,750 crore. It is a build, own, operate, and transfer (BOOT) contract spanning over seven years.BSNL has also floated a tender for IT related work with an expected size of Rs 6,000 crore. Spanco has tied up with applications developer Amdocs and IBM and has jointly bid for the tender. BSNL is likely to announce the lowest bidder for this project in a few weeks.Spanco has grossed Rs 622 crore in revenue in the last four quarters.BSNL''s contract would help the topline increase at a rapid pace since the company expects to earn over Rs 1,000 crore in revenue in the first year of the contract with an operating margin of 14-15%. This may provide some stability to its current margin, which has been fluctuating between 6% and 17%. Spanco has been aggressively looking for opportunities in the telecom and BPO space. However, it has yet to achieve financial stability. Its cash flow from operations is negative, indicating that the company is still in the financing mode and will take some more time to generate a cash flow from operations. It also has to improve its receivables collection. The debtor days or days for which sales are outstanding has increased to 169 days in FY08 from 122 days in the previous year.While the future for Spanco looks promising, the company has to improve its financial parameters to run healthy operations.All said and done,investors can consider an exposure to the counter at dips.Can prove to be a great buy if all augurs well for the company.

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner