Jun 21, 2010

Financial Technologies Ltd.

More than a year ago
Financial Technologies Ltd.was quoting at Triple digit PE.
Obviously for any matured investor this was not a price to buy.

The stock plunged to below 500 an it was a great buy at these levels.
But Today it is trading at around 1400.
If we calculate PE taking average EPS of last 5 years,
Then the PE comes around 17.
Is this valuation high or unreasonable.
Of course not for a company such as this.
It owns MCX and has tied up with several international exchanges.
The financials are very good. It is likely that next 10 year will belong to this company and the ambitious management will not deter to take steps for large MnA in years to come.
It is in our opinion still an under-covered, less followed less capitalized or midcap blue-chip company.
The listing of BSE shares and increased MnA activity in this space is likely to drag attention in this counter.
We have earlier also advocated strongly at 500 levels and at this levels also see investment opportunity in this counter.
Its drive to own and operate self-incorporated and established exchanges world over makes it a buy and a valuation of PE 17 is not excessive.
To read earlier article on this company click the below link;


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