Buy Micro Technologies - Target 350 - One Year
The company had recently held along with Mumbai Police and Western India Automobile Association a Vehicle Safety and Security Week to introduce and make people aware of the latest technological devices and other preventive methods to overcome the menace of vehicle theft. The government is also reported to be considering a rule that all cars need to have an anti-burglary system, which should be beneficial to the company.
The company on July 20, 2007, issued and allotted 0.5% Coupon Foreign Currency Convertible Bonds (FCCBs) with a maturity of 5 years and three days. The FCCBs were issued in the principal amount of US $ 15 and are convertible into ordinary shares of the company at an initial conversion price of Rs 312.84 per share. The FCCBs, have a 7.75% per annum yield to maturity (calculated on a semi-annual basis).
The company also has approved the allotment of 2,50,000 equity shares to Bennett, Coleman & Co. Ltd., at a price of Rs 250.40 on preferential allotment basis and also 9,00,000 warrants to Micro Associates Consultancy (I) Pvt Ltd. at Rs 250.40 per warrant with the option to convert one warrant in to one equity share, on preferential allotment basis.
For the current quarter ending June 07, Net profit rose 61.66% to Rs 10.54 crore as against Rs 6.52 crore during the previous quarter ended June 2006. Sales rose 55.73% to Rs 34.51 crore as against Rs 22.16 crore during the previous quarter ended June 2006. The company can be expected to clock in an EPS of Rs 40 on a fully diluted basis. The revenues are also estimated to grow at around 60-70% CAGR.
