Story:ASM Technologies, established in 1992, is a pioneer in providing world-class consulting services in enterprise solutions for the Packaged ERP products and in enterprise product development for SMB segment and in technology solutions covering embedded systems and system software to its global clientele. ASM has development centres in Bangalore (India), Singapore, Chicago, Toledo and Tampa (USA), and London (UK). Advanced Synergic Pte Ltd, Singapore, Pinnacle Talent Inc, USA, ESR Associates Inc, USA and Abacus Business Solutions Inc, USA are subsidiaries.ASM has worldwide' Global presence with offices in India, Singapore, USA (Chicago, Toledo and Tampa), Japan & UK ' Focus on enterprise applications and technology solutions. It has development centres in India (Bangalore), Singapore, and USA (Chicago). During FY11-12, ASMTL explored the possibility of setting up operations in LATAM (Latin America) Region. During FY11, ASMTL acquired 100% of US-based Abacus Business Solutions, Inc., in an all cash deal through its wholly owned subsidiary, Advanced Synergic pte Ltd, Singapore. Abacus has been in the business for more than a decade assisting large corporations/Fortune 500 firms with Enterprise Applications, Oracle Applications, Oracle Tools and Technology, E- Commerce, Reporting and Data warehousing. The acquisition has afforded ASMTL an opportunity to expand its offerings to a larger ERP & Oracle client base in the US and thus broaden its revenue margins.With a healthy surge in outsourcing demand and strong deal pipeline, IT revenues are expected to get the biggest boost in coming quarters. With enterprises globally thawing IT budgets to prepare for the future, indication is clear-strong volume momentum will be the flavor of the season and double digit volume growth won't be a surprise to the Indian IT companies, but maintaining the right pace will be a challenge. Cloud computing is another area, which may drive the IT need of the services industry during the year mainly due to its manageable IT infrastructure and cost effectiveness. The mid market segment remains a major growth avenue for enterprise applications. Globalisation continues to drive global servicing models which ensure India to remain competitive and leverage on its talent pool. Customers are opening up to offerings around cloud computing solutions, SaaS, on demand solutions, etc., which enable service providers to address new customer segments.ASMTL will leverage the growth phase in consolidating and growing the organization by offering more services to the existing clients across other geographies and new client acquisitions. This growth phase will also set a platform to have more long term strategic partnerships with the customers moving up the value chain from project mode and center of excellence. ASMTL's competitive strengths and with its global delivery model and core competencies consider to address the changing economic scenarios as an opportunity to provide greater value to existing clients and further adding new clients. This spells good business opportunity for ASMTL going forward. At the CMP of Rs 70, the share is trading at a P/E of 3.1x on FY12E. We maintain BUY with a target of Rs 100 in the medium term.