Scripscan:-Bartronics India Ltd
Cmp:217
Target:343
Return expected:55%
Duration:6-9 months
[Bartronics India news,views and analysis/Prospects/big retail boom beneficary/amazing results/attractive valuation/growing at over 100%/bartronics target price/Monopoly business/1000crs company soon/Great buy/a potential doubler]
Story:Bartronics is a market leader in system integration for barcode solutions and has been in this business for last 17 years.Its a pioneer in introducing Automatic Identification and Data Collection (AIDC) technologies like Barcoding, Radio Frequency Identification Device (RFID) and Smart Card which has manifold application in Manufacturing,Service and Retail Industry.Bartronics has a strong client base, with 60% of its orders from repeat customers.The company provides end-to-end solutions in this space, including pilot testing and software integration.The company has a Monopoly position in the Industry as there are hardly any competitor in RFID and AIDC products.Its recent focus on the emerging domains of RFID and Biometrics is likely to augur well.At the present price of 217rs its just quoting at a PE multiple of 7 times its expected fy10 earnings.Bartronics is India's first and only Smart Card manufacturer as of now, having 100% EOU status from Govt. Of India.Giving a PE multiple of even 11 takes the target price to 343rs.The management has confirmed talks with some european companies for acquistion the same hasnt been taken into consideration for the target price.On outcome of any acquistion the story may just anvil much more.Considering all the developments and looking at the huge potential of the retail industry the company is set to go places.A must have in anyones core portfolio.
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