I have not been recommended any stocks through this Blog since April this year. The lopsided market trends, official engagements as well as the homework for my Portfolio Advisory Services constrained me to publish a post in the kind. We have seen numerous ups and downs during this period. Some of us made decent gains, some missed the bus or some get off from the bus before it reaches the probable destination, and a few still waiting for a better time to make an entry to the market.
Any way, I would like to recommend one of my favorite and emerging stocks for my readers/clients. This scrip, which I already have recommended to few of my clients between May-July this year at 70-120 range. Please stick on, if you are not yet exited, else you can still accumulate this gradually at the range specified below. I would like to request you to go through one of my previous article related to the subject before you read these lines, will make a better idea on this amazing sector. Prepare your sense to hold this stock, a 3-5 years minimum, or practice patience till matures the 3G spectrum as well the upcoming mobile/wireless technology standards.
BSE Code-532663
Scrip Name-Sasken Communication Technology Ltd
Sector-Technology-Mobile VAS
CMP (24/07/2009)-165.80
EPS-10.17
PE-16.55
BV-155.09
FV-10
52 Week L/H-41.00/184.90
Buy Range-Accumulate in every fall below 170
Ever High post 2000-624.00(Jan 2007)
Market Cap-456.40
Chairman & MD-Rajiv C Modi
Auditor- Deloitte Haskins & Sells
Promoter’s holdings-27.99%
In 1989, Silicon Automation Systems (SAS) started in a small warehouse in Fermont, California as a dream project of Mr Rajiv C Mody (Chairman&CEO) with 2 other co-founders, Suresh Dholakia and Badru Agarwala. Later the company's name has changed to Sasken Communication Technologies Limited(SCTL). The name 'SASken' is a combination of its original name (SAS) and the Scottish word “ken” means knowledge.
SCTL offers an amalgamation of Research and Development Consultancy, Wireless Software Products, Software Services and Network Engineering Services. The company has a worthy range of clientele, in the fields of Network OEMs, Semiconductor Industry and Terminal Device OEMs across the world. Sasken employed more than 3,200 professionals at its offices worldwide, has repeatedly featured among the Best Employers in leading industry surveys. The happy workforce with innovative mission.
The company headquartered in Bangalore, Global Development Centre (called Fac-Z) with 4 other development centers in the city, Bagmane (Fac-B), Hosur Road (Fac-W), Domlur (Fac-M) and Outer Ring Road (Fac-A). SCTL also has development centers at Chennai (Fac-C), Pune (Fac-P) and Hyderabad. The company also has offices in Kawasaki in Japan, Santa Clara, Plano and Burlington in USA, Monterrey in Mexico (Fac-Mx), Saint-Laurent-du-Var in France, Frankfurt and Bochum in Germany and Guildford in UK. Most of its foreign offices manages the sales/marketing operations.
Subsidiaries
Sasken Network Engineering Limited (SNEL)
iSoftTech Private Limited.
Sasken Finland Oy (earlier Botnia Hightech Oy – Finland)
Sasken Automotive Electronics Pvt Ltd – TSAE, A JV (joint venture) with TATA Autocomp(TACO)
In addition to being engaged in the development of a variety of technologies, Sasken is a member of premier technology forums/bodies including ITU, 3GPP, GCF, MPEG-ISO, WiMAX, NFC, DLNA and ATM, DSL & SDR forums. Sasken is a SEI CMM Level 5 certified company and its solutions are qualified by ISO 9001:2000, ISO 27001 and TL 9000 certifications. Sasken’s Wireless IP spread on more than 50 models and over 50 million phones across networks in Australia, China, Europe, Hong Kong, Japan and Taiwan. SCTL’s Test Lab has become the first and only Test Lab in India to be ISO/IEC 17025:2005 certified for Handset Protocol Conformance Test (GSM,GPRS,EGPRS,SIM/STK) Services.
SCTL products/services caters to big Network Equipment Manufacturers (both wireless& wire line), Semiconductor Manufacturers who supplies to Telecom Market, Wireless Terminal Product vendors and Test and Measurement Equipment vendors around the globe. The company offers services for planning, deployment and managing Wireless Networks to Network Equipment Manufacturers and Wireless Service providers. Sasken also offers software services for development and maintenance of various software components required for execute network support system in the field.
The company powers the Semiconductor industry with IC Design services and Silicon Platform Software services. The IC design Services include Design, Verification and Integration of Integrated Circuits, the SPSS covers, design & testing, maintenance/sustenance and integration of software around the chips.
Softwares are emerging as the principal factor in the next-generation wireless terminal devices, delivering a wider range of utility applications and experiences to the users. Mobile Terminal Softwares are critical to the realistic performance of Terminal Equipments, yet these are complicated and expensive to build up, consumes a lot funds of handset manufacturers. Sasken provides software solutions for 2G, 2.5G and 3G technologies, offering a range of platform independent, standards compliant Wireless Protocol Stacks, multimedia codecs, middleware frameworks and applications to boost the product range, helps the firms to come up with high end handset varieties in short span of time.
The Symbian Competence Center at Sasken provides licenses of Symbian OS, Series 60 & UIQ with Component Design and Development, Software Porting, Integration as well as Testing Services.
Sasken Symbian expertise covers :-
Application Development
Multimedia applications comprising Sasken IP
Symbian TRP customization and testing
Software porting & integration
Base porting
Device drivers
Testing & Integration.
SCTL also licenses the following Strawberra Multimedia products
Multimedia codec engines (video, audio, speech and image)
MMS client
Media suite/Audio/Video players
Still camera/Video camcorder
3G-324M Videophone terminal
ARM Approved Design Centre
Sasken’s expertise ranges across wireless technologies, hardware platforms and multiple Operating Systems. SCTL also mastered in existing wireless technologies including TDMA, CDMA, GSM, GPRS, EDGE, 3G, IS95 and 802.11b The company with its wireless experience, offers High-End Consultancy services in the area of emerging wireless technologies such as Seamless Mobility and Fixed Mobile Convergence. As of now, Sasken is the largest Silicon IP vendor in India.
In March, 2009, Sasken has entered in an agreement with Inmarsat , the leading provider of global mobile satellite communications services, to complete development of the next generation global satellite hand-held phones. Sasken and Inmarsat have working together for more than five years in the area of mobile satellite communications. Inmarsat has preferred Sasken, to design and bring into pre-production the complete phone, which would include the hardware component comprising design, development & testing of antenna, RF and Mechanical Elements and the Software Component Comprising Protocol Stacks, application framework and test lab offerings. This engagement is first in its nature for an Indian company to be involved from the basic design phase up to producing pre-production units.
My View
I have a strong faith on this sector and believe, Sasken will do miracles in coming days. Sasken is an undisputed emerging player in this segment with tremendous growth perspectives. I dream that, being the licensees of Symbian OS (The platform referred as future Operating System for Mobile applications) and the ongoing venture with Inmarsat will bring Sasken to new heights and these projects may guide this scrip to a real multibagger with in few years. Accumulate!
Quote
“Sasken offers expertise in communications technology along with their capability and experience in wireless terminal development, they will make a strong partner, we will work closely with Sasken in the design and development of our satellite phone to offer a new and compelling product in our broad portfolio of services over the Inmarsat network.”
Perry Melton, Chief Operating Officer ( Inmarsat)
Intel’s - http://www.intel.com/capital/download/Success_Story_Sasken.pdf
Check my previous post too in this regard. http://shabuhere.blogspot.com/2009/07/mobile-vas-hotspot.html
Readers are requested to comment whether negative or positive, as I am eager to know what you think on the above information as well as about the recommended scrip.
I am not responsible for your investment decisions; please do your own research before make any investment.
Contact – sthachat@gmail.com
Hi Shabuji
ReplyDeleteit is an excellent post. I own Sasken and your analysis will help me to accumulate more. Thanks for sharing yr hardwork with us.
drumartak,
ReplyDeleteThank you for the comment.
regards
Shabu
Shabu Sir.
ReplyDeleteIncredible analysis.
Coming to the point of who will dominate the Mobile OS will depend on Ease of Use and Platform Strategy and Strategic Partners with Those Handset makers that has Significant mkt share : [Nokia :) ].
Win CE in the Mobile OS market has already run out. They tried hard to push Win CE in to mobile but due to its high cost many hand set vendors droped to adpot.
Comming to Sybian OS [ The Future OS, as u said, is Correct ]. We all know Nokia Bought Sybian OS and Qt [A cross-platform application and UI framework] which is Smart Stratey [ Qt [Rapid App develping] on Sybian OS ]. Nokia's Symbian-related assets will be Free soon and contributed to the new Symbian Foundation, a nonprofit that will control the Symbian platform.
Founding members of the Symbian Foundation includes LG, Motorola, Nokia, SonyEricsson, DoCoMo, Samsung, AT&T, ST Micro, TI, and Vodafone : Very interesting to see Mixed Operators, especially AT&T.
New Symbian Platform will have a much broader scope than the current Symbian OS. wich will include
1. An app suite (previously controlled by licensees)
2. Runtimes includes: Webkit, Flash, Silverlight, and Java :Which are all previously licensee-controlled.
3. UI framework : formerly controlled by licensees.
4. Middleware
5. OS
6. Tools, SDK, and application signing (previously shared between Symbian and licensees)
We will see new merged platform in 2010.
Android vs Symbian : Google should be worried becuz there is now another very credible and reliable operating system being given free in competition with Android. Another plus point is that all the leading mobile handset companies will participate in the Symbian Foundation.
Now lastly Win CE Fate : How many companies are willing to pay for Win CE when you can get Symbian, Linux, Android, or for free ? This will be Microsoft's ultimate open source nightmare, becoming real. And Earlier They Announced that FoxPro will be OpenSourced.
Sasken working On that Symbian OS means it too has great potential.
Sasken is in Right Hi-tech Sector like TDMA, GSM, GPRS, Wireless. Sooner We will see a major Shift from GSM to IP based phones [ IPv6 is developed and mainly used for Mobile..So each Mobile will have Unique IP. ]
Nice Analysis on Sasken... Mr Shabu.
ReplyDeleteI own some shares at IPO price, though not bought from Public Issue but from secondary markets itself.
The stock has seen the worst possible fall to Rs.50 just few months back. Going by that, the stock has given tremendous pain to its investors who bought at IPO or at a price above IPO allotment price post-listing.
Lets hope, your analysis holds true & the stock turns out to be multibaggar in times to come for its investors.
Dear Mahesh,
ReplyDeleteThank you very much for the excellent and informative comment. Some of the info provided by you is fresh to me.
Once again thanking you for a cpmprehensive comment.
Thanks for that.
Dear Viral,
ReplyDeleteThanks for the comment. As I said in my post, it will definitly cure all the pain and will pay back great pleasure to its investors in future. I think the illogical pricing at IPO is a factor in such a heavy crash, and the recession shrinked it more..
Let me assure you, stick on..
regards
Shabu
Thanks Shabu..the post was excellent with a strong reasons of its growth ..The deal with Inmarsat should defintely bring Sasken to new levels in next few years..
ReplyDeleteThank you for Sharing..
Venkat
Dear Venkat,
ReplyDeleteThanks for the encouraging comment.
Regards
Shabu
Hi
ReplyDeleteI like this post very much. It help me to solve some my work under my director’s requirements.
Apart from that, below article also is the same meaning
TL 9000 terms
Tks again and nice keep posting
Rgs
Dear johnthep2009,
ReplyDeleteThanks for the comment and welcome.
regards
Shabu
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