Bartronics India Ltd

Company Background


Incorporated in 1990, Bartronics India Ltd (BIL) is a Hyderabad based company that started with providing solutions in Automatic Identification and Data Capture (AIDC) having application in the area of inventory management, sales over retail counter, supply chain management and attendance recording. BIL has expanded into other AIDC solutions of RFDC, RFID tags, Smart Cards, Point of Sale (POS) units targeted at the retail market. The company is also developing GPS/GPRS technology.


Automatic Identification and Data Capture (AIDC)

The AIDC industry is moving rapidly towards the use of RFID in a number of high-value and high-volume market segments. The RFID market is expected to jump from $1.4 billion annually this year to as much as $3.8 billion in 2008, according to a study by Allied Business Intelligence Inc. It is still in a nascent stage but there are several factors, in addition to dropping chip prices, which are driving the growth of RFID as an enabling technology.



Business Model

BIL started developing and marketing bar codes, one of the oldest AIDC technologies. From the bar coding segment, BIL forayed into other advance areas of the AIDC technology ie. Biometrics and RFID.  BIL expertise lies in providing a total bar code solution together with system integration, which has applications in areas such as inventory management, attendance recording, dispatch management and sales over retail counter etc.



Industry Associates:

Intermec technologies, Synel Technologies, Datalogic, Escort Memory Systems, ASK, Wavex Technologies, singapore, Idmicro - RFID Solution Provider, Skywave - Mobile Communications, Lintec Corporations  




Business Alliances :

Watchdata systems, Singapore, Muhlbauer, Germany , SIL, mauritius, Hayleys, Srilanka, Almoayyed commercial services, bahrain, ST Microelectronics,  Iris corporation, Malaysia

 
Recent News:

The company has recently won a deal estimated at Rs 5,000 crore from the Municipal Corporation of Delhi. This deal, spread over nine years, is to set up 2,000 kiosks to provide ‘Government to Citizen’ services. This deal also opens up opportunity for garnering advertising revenues for Bartronics. This is especially relevant as the Commonwealth Games is set to take place in Delhi in 2010, providing scope for booking advertising revenues upfront.This deal provides long-term revenue visibility for the company.

Bartronics India Limited has informed that Bartronics Asia Pte Limited has received a trial purchase order for supply of RFID (radio-frequency identification) tags from the Singapore government housing and development board.




Financials:

Bartronics India's net profit surged 174.3% to Rs 18.49 crore on 68.8% increase in net sales to Rs 92.31 crore in Q3 December 2008 over Q3 December 2007. 

For the last three years, revenues have grown at a compounded annual rate of 146.8 per cent while net profits have grown by 170.3 per cent. In the nine months of FY09, the company has seen a 155.3 per cent (to Rs 417.2 crore) and a 132.6 per cent (to Rs 65.5 crore) growth in revenues and profits respectively.


PE : 4

52 Week High 253.00 

52 Week Low 55.00 

CMP : 74



Bartronics Advantage:

The Company has a robust order book of Rs 1100 Cr that is executable over the next 24 months. Of this order book the company has executable orders worth Rs 800 Cr executable over the next 15 months.

As the only company to provide end-to-end AIDC solutions in India, it is likely to benefit from strong and sustained client relationship.

Monopoly in smart card & RFID technology in domestic market with 90-95% market share in both, which in turn will swell its order book.



Investors can buy this stock around 50-70 level for medium to long term Investment(3-5 years)