Visesh Infotecnics: In league with US Transnational Echostar
CMP Rs 31

-Delhi based Visesh Info has entered the lucrative field of Business Process Outsourcing/Knowledge Process Outsourcing segment with the setting up of a 1500 seat KPO at Gurgaon dedicated to US communications player Echostar.

-In addition to the existing business of producing and marketing shrink wrapped ERP packages for small and medium enterprises, the corporate has entered the field of Mobile Telematics. Using advanced technologies like GPS, and Wi-Fi, the Visesh Info designed product allows better fleet management for BPOs by mapping the location of their entire fleet at any given point in time, and through using wireless technology ensure better and timely utilisation of support staff and their vehicles.

-The corporate would soon be raising close to $ 15 mn through a GDR/FCCB issue which would allow Visesh to set up operations in the US for marketing of the ERP packages and ramp-up of KPO Capacities.

-In addition to the KPO deal with Echostar, Visesh is likely to enter into a deal with Reliance Fresh for Mobile Telematics.

-FY07 Revenues are likely to exceed Rs 110 crore, with after tax profits of Rs 18 crore, which work out to an EPS of Rs 6.75. The scrip trades at a PE of 4.5 times FY07 earnings.

-FY08 Revenues are likely to be closer to the 150 crore mark with after tax profits at Rs 24 crore, or an EPS of Rs 9.

The stock is a low PE play on the growing IT/ITES segment.

Background:

The company has under its fold, over 400 highly skilled and experienced professionals from system analysts, system designers, programmers, system integrators, Engineers, MBA’s and MCA’s to Cost Accountants, Chartered Accountants and Marketing professionals, with domain expertise in their own fields of specialisation.

Its Software Engineers have expertise on platforms like Oracle, SQL Server, DB2, Interbase, J2EE, Java, EJB, JSP, C, C++, Visual Basic, Cobol, Corba, COM, DCOM, UML, Rational Rose, Java Beans, BEA WebLogic, IBM Web Sphere and ASP.

Its major offerings are Enterprise Software Products, IT Services and BPO Services, wherein each segment is poised for major growth. Some of the recently launched products like TransXSTM have shown good growth potential and market acceptance, while IT Services arm InfraServeTM has successfully entered emerging high-growth segments of Wi-Max, Wi-Fi and GSM communications. The recently launched BPO initiative has a healthy order book position in excess of US $ 30 million, while its hosting services arm InfraSurfTM has steadily built profitability & client base.

A shrink-wrapped ERP for the Small & Medium Business (SMB) segment branded powERProTM, tested & certified by NSTL (world’s largest independent technology testing laboratory) is ready after successful beta tests for a Global launch, with several USP’s that could result in a exponential growth for Visesh and make it a globally recognized as a software company.

EchoStar Communications Corporation

Headquartered in Colorado in the United States, EchoStar communications Corporation is a public company with approximately 20,000 employees. The Company and its subsidiaries deliver Direct Broadcast Satellite (DBS) television products and services to customers worldwide.

EchoStar is the operator of the Dish Network, a service that distributes television programming to over 12 million subscribers in the U.S. The company owns and operates 2 main uplink centres, 10 satellites and several call centers in the USA to support its subscribers.

EchoStar is also the leader in the field of high tech digital set-top box development, and manufactures a wide range of receivers supporting various services and digital platforms all over the world.