Saturday, September 24, 2016

Compucom Software Ltd @10.67

1. Compucom Software Ltd is a 2 rupee face value IT Training Services company.

Security ID: COMPUSOFT  Group / Index: B  Face value: 2.00  Security Code: 532339  ISIN: INE453B01029  Industry: IT Training Services company.
Short Brief of Company Business: - Compucom Software Limited (CSL) is the leading software and education company from the state of Rajasthan, serving customers spread across the six major continents. Rapidly expanding it’s client base and revenue streams, the company now works out of it’s development centers in Jaipur (India) and Atlanta GA (USA).
Since it was IPO in 1999, CSL has been listed on the Bombay Stock Exchange (BSE). The company has been adjudged the best software exporter for many years by Software Technology Parks of India (STPI). The State and Central Governments have acknowledged our contributions by various coveted honors and awards, during this course.
Read more details at- (Company Website)
2. Year high of Compucom Software Ltd is 14.46 year low was 7.72 and stock traded at 10.67, Year high/ low ratio is  below 2, So stock is stable for fresh buy.,  
If you are new reader of my blog and not familiar with my research terms, then please see my research terms at this link:-
3. Promoters of Compucom Software Ltd hold 73.01 and  Promoters increase their holding from 72.16%, As per my rule I like an increase in promoters holding.
CSL promoters are not pledged any stock.
See full list of public shareholding including FII and DII here:-
4.Compucom Software Ltd is a regular dividend paying stock See past dividend history of CSL:-
Dividend Declared (  )
EX DateAmount ()
02 Sep 20160.1000
18 Sep 20150.1000
21 Aug 20140.4000
12 Sep 20130.4000
12 Sep 20120.3000
06 Sep 20110.3000
20 May 20100.2000
15 Sep 20090.2000
01 Feb 20080.3000
06 Sep 20071.5000
03 Sep 20012.5000
5. The base price of Compucom Software Ltd is 10.51 So So at CMP  10.67 Compucom Software Ltd just crossed his base price.
Link for download last 3 year price data and graph
Base price also suggests that 8.40 to 12.61 is a fair value for fresh buy.( 8.40 is 20% below from base price, and 12.61 is 20% above from base price, I recommended it on 10.67 because I wait till stock reach/cross his 200DMA of 10.34)

6. No any bonus issue right issue and bulk deals are recorded in last two years. But in his history this stock give bonus as below:- 
Bonus History
24 Dec 2008issue 1:1
19 Oct 2010issue 1:2
One of my follower, Rajnish Bansal from Bhatinda (Punjab), ask through email that:- 
Dear sir
I want to purchase 100 shares of Wipro Ltd for long-term approx 20-25 years.Do you think is it can create a good wealth.Please suggest me.
So Rajnish ji, I think you read my Hindi blog where I give the example that if anyone bought 100 Wipro stock in 1980 then-current market value of his portfolio is 5320 Crore.
Read this Hindi article here:-
Here is your answer that if you really want wealth creation in the long term then consider small IT company which traded discounted from net sale per share or book value like compucom.
If you  invest only 1067 in compucom software for buy 100 Share and forget them for 25 year,  Then It is not sure that same wipro story will repeat, but you have only INR 1067 to lost but unlimited opportunity to earn.
Big Indian Investor Rakesh Jhunjhunwala also buy 5,00,000 shares of Compucom Software @25.00 see proof in this bulk deal record:-

7. Compucom Software Ltd net sale per share of FY 15-16 is 7.04.
8. Net sale per share 7.04  is below CMP, so this is the reason why I publish this stock under my penny share blog instead of my multi-baggers stock recommendations.
But do not worry most of IT stocks traded above his net sale per share for example peer group IT training stock NIIT traded at 98.55 but his net sale per share is 23.04 only. So in compersion of IT sector net sale per share vs. current market price CSL is a value buy.
9. Book value of Compucom Software Ltd is 15.91 Book value is also higher than CMP, So in book value term CSL is a value buy at CMP.
8. Finally, I think Compucom Software Ltd is the best penny stock for long term multiple returns.
9. 200 DMA of Compucom Software Ltd is 10.34. So at CMP 10.67 Compucom Software Ltd traded near his 200 DMA, and If we see June 2016 Result then we find Net profit of the company is increased which is a good sign for upward movement.
10. Fundamental target price of Compucom Software Ltd is 10.038 ( Read my book to learn how to calculate the fundamental target price of any stock.). 
Please remember that due  to low net sale per share and low book value of IT stocks, fundamental target price and book value theory not applicable on IT Stocks. 
So you may buy it for 25% to 200% returns from here.
11. My recent updates: - Past Performance of App Recommendations. 
12. Disclaimer: - This is not an advisory service to buy or sell. The contents of “this research report” are only for educational purposes. No liability is accepted for any content in “this research report”. The author is neither a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time.The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions. Please read full disclaimer at the bottom of my blog.
13.Discloser: - I Mahesh Chander Kaushik author of this research report is an existing research analyst and passed NISM certification for research analysts. I am also registered under SEBI(RESEARCH ANALYSTS) REGULATIONS, 2014 ( SEBI Registration Number INH 100000908 ) hereby disclose about my financial interest in the subject company and the nature of such financial interest:- 1 Me and my associates or relatives have not hold any share of Compucom Software Ltd, so my personal interest is not included in this stock. 2. Me and my associates or relatives have not any actual/beneficial ownership of one percent or more securities of the subject company ( Compucom Software Ltd). 3. Me and my associates or relatives have not any other material conflict of interest at the time of publication of the research report. 4. Me and my associates or relatives have not received any type of compensation from the subject company(Compucom Software Ltd) in the past twelve months. 5. I am not served as an officer, director or employee of the subject company ( Compucom Software Ltd). 6. I have been not engaged in market making activity for the subject company (Compucom Software Ltd).

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