Views on Life & on Equity Investing

Wonder, Wealth & Abundance

Nucleus

with 2 comments

Wrote previously about this here Looking at Nucleus Software’s massive eight years of yawning under performance made me look further back in its history. There is a lot wrong with the company and the company is generally compared with OFSS and Polaris. This may not be the right comparison, 80% of revenues of Nucleus are earned outside India.All continents account for nearly equal percentage of revenues now giving it multiple legs.


Annual revenues and Profits


Year
Revenues INR Crores
Profit After Tax INR Crores
2000-01
27
10
2001-02
40
10
2002-03
60
7
2003-04
54
10
2004-05
67
15
2005-06
94
28
2006-07
146
42
2007-08
288
61
2008-09
328
32
2009-10
291
38
2010-11
270
26
2011-12
282
35
2012-13
293
45
2013-14
346
64
2014-15
350E
65E

The company is dependent on a very narrow and niche segment with lumpy earnings and marked by absence of growth for multiple years at times.
– No Growth, Value Trap, Mediocre Management and a few more issues with the company.
Positives:
Intellectual Property, Product Based company, #1 in its Lending Niche, 103 / share cash (CMP 175)  in hand, which makes me feel its a bargain. That said, I may give the company up to 4 quarters to perform or out.
Disclosure: Invested.

Written by amitdipsite

February 7, 2015 at 12:51 am

Posted in Uncategorized

2 Responses

Subscribe to comments with RSS.

  1. Mr Amit can you please throw some light on associated ALCHOLOL and breweries ltd and Albert David please

    MrRavikum

    March 14, 2015 at 12:38 am

  2. Hi Amit,
    I hold this stock, it has good dividend yield and you be 3 to 5 yr boom bust cycle in share price, if you enter and exit at correct points can make money. The other day I got pissed of with 3 yes of underperformance of Hitachi appliances and bored with linear stock movement, since the qty was less, so let it stale then it went to 1000+
    Subbu

    Subbu S

    May 10, 2015 at 5:40 pm


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: