Dynacons Systems and Solutions Limited (DSSL) (Revised Call)

Dear members

          Dynacons Systems and Solutions Limited (DSSL) was uploaded on blog at 39 on 11/12/17. Than after stock made new 52 week high of 66.

once again stock is trading at our research level. Company have won some big contracts, promoter have increased stake are positive signs.

One can check out for more upsides.
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Dynacons Systems and Solutions Limited (DSSL)

(CMP 33) 
CODE :- 532365

COMPANY OVERVIEW :-

Dynacons Systems & Solutions Ltd is an IT company with global perspectives with their headquarters at Mumbai and branches all over India and at Multiple Locations abroad. The company is engaged in providing a comprehensive range of end-to-end solutions to customers. The company has the technical expertise and the service delivery infrastructure to serve customers at a level of quality consistent with their expectations. They help in the selection of the right technology and application that will yield the greatest return and build a business case for implementation based on lower Total cost of ownership and higher performance.

The company undertakes all activities related to IT infrastructure including infrastructure architecture, design and consulting services, turnkey systems integration of large network and data centre infrastructures including supply of associated equipment and software; on-site and remote facilities management of multi- location infrastructure of domestic clients. 

The company provides the entire spectrum of Information Technology services including Business Planning, Business Availability and Business Continuity Services. 

They provide high quality, 24 hour, seven days a week support services by leveraging their expertise in managing IT Infrastructures for their customers.

BRIEF HISTORY :- 

• Dynacons Systems & Solutions Ltd was incorporated in the year 1995 as a private limited company with the name Dynacons Systems & Solutions Pvt Ltd. In January 2000, the company was converted into public limited company and the name was changed to Dynacons Systems & Solutions Ltd.

• During the year 2000-01, the company completed their maiden public issue and the equity shares of the company were listed on the Bombay Stock Exchange, National Stock Exchange Ahmedabad Stock Exchange and Hyderabad Stock Exchange. The company entered into a strategic tie-up with Shecom to fulfill their manpower requirements for various key positions and also assist them in their various IT-related activities in India.

• During the year 2002-03, the company obtained the order for computerization of the Revenue Department of Goa Government, involving supply of High End Servers, Desktops, Software, Networking and Systems Integration. 

• They received the Best VFB Partner, Best Competitive Account Breakthrough and Best IBM Sales Person, awards from IBM. During the year 2003-04, the company completed systems integration for the e-governance project of Goa Government, Revenue Department.

• During the year 2008-09, several initiatives of restructuring have been taken to create multiple avenues of growth. The company decided to become selective in their business operations in order to improve profitability and productivity.

The objective of the company is to widen their reach and market presence and work towards establishing new markets. The focus will be on the education, hospitality, government and healthcare customer segments. Their focus will be on making strategic investments/ acquisitions, investing in the right business solutions, leverage their expertise in providing IT infrastructure solutions to further enhance the spectrum of offerings and focus on services expansion and become a vendor of choice for organizations.

INDUSTRIES SERVED (Major) :- 

• Grasim Industries Limited
• Larsen & Toubro Limited
• Bombay Dyeing Limited
• GOA Shipyard
• Balaji Telefilms Ltd.
• Dena Bank
• Financial Technologies Ltd.
• National Insurance Company
• Multi Commodity Exchange of India Ltd
• Gufic Bio Sciences Limited
• Merck
• Wyeth Laboratories
• Blue Cross Laboratories Limited
• All Cargo Movers (India) Pvt. Ltd.
• Shipping Corporation of India
• Government of Goa, Revenue Department
• All India Radio
• Bharat Electronics Ltd.
• Indian Audit and Accounts Department
• ONGC
• Indian Airlines
• AIR India
• Many Educational Colleges & University

WORKING AREA OF THE COMPANY :- 

• Consulting, Audit and Training services in IT Infrastructure Management
• Systems integration
• Monitor, control and improve business processes in real time
• Designing IT-enable business process solutions
• Network design
• Network monitoring and management solutions
• Network Audit, Network security
• Wireless Solution. VOIP/VPN Solutions
• LAN, WAN
• Network Architecture
• e-Business solutions
• Software Solution
• Software Re-engineering
• Database Administration Services
• Business Intelligence Solutions
• System Administration
• Server Monitoring and Management
• Asset Management
• Data Center Management
• Vendor Management
• Intrusion Detection & Prevention systems
• Firewall Design, Deployment and Maintenance services
• SPAM & Spyware solutions
• Authentication & Identity management solution

RECENT DEVELOPMENTS IN THE COMPANY :- 

• Dynacons Systems and Solutions Limited (DSSL), announced that they have secured an order for an Enterprise Storage Solution worth INR 10.91  Crores trom National payments Corporation of India (NPCI). (20/4/18)
  
  The terms of the contract with NPCI include:
  
  - Supply, installation and commissioning of SAN Storage
  - Host Integration & Integration With Switch
  - Replication Setup & Fail over for Chennai & Hyderabad
  - Periodical Firmware Upgrade
  - SLA Based Support
  
  NPCI was looking to enhance their IT infrastructure with a fast, flexible system that could meet the demands of business growth at their two data centers separately located in India at Chennai & Hyderabad. The solution is an enterprise class storage for the most demanding Workloads, with sub-millisecond latencies, and scalability . The architecture hardware acceleration, including inline de-duplication, compression, data packing, thin technologies and other compaction technologies that can reduce acquisition and operational costs.
  
  Dynacons has successfully implemented several large projects for clients across verticals like Government, Semi Government, Public Sector, Banking, Insurance, pharmaceuticals, Hospitality, Construction, Education, Shipping & Logistics and Manufacturing with advanced technology capabilities, Dynacons has managed to deliver comprehensive solutions and IT Managed services to customers across multiple states in India.

Click here :- https://www.bseindia.com/xml-data/corpfiling/AttachLive/a15a08e3-99f1-40c2-a676-37dc7c264ed2.pdf

• Dynacons Systems and Solutions Ltd (DSSL),  has been awarded one of the most prestigious IT Infrastructure Management Services contract from Godrej & Boyce Mfg. Co. Ltd, a Godrej Group  firm, for a period of three years. (24/02/18)

“As per the terms of the contract, Dynacons will offer managed IT services for the IT infrastructure at 190 locations covering the H O, factories, warehouses, branch and sales offices of Godrej & Boyce Mfg. Co. Ltd,” the company said.

Based in Mumbai, Godrej & Boyce engages in consumer goods, real estate, appliances, agri, and other businesses.

Click here :- https://www.bseindia.com/xml-data/corpfiling/AttachHis/6e649631-9031-48a5-bc53-90abd2ca67d9.pdf  

• Dynacons Systems & Solutions Ltd has been ranked in the Financial Times 1000 list of High Growth Companies Asia Pacific released by Financial Times in partnership with research firm, Statista. Dynacons occupies the 455th position. 

Click here :- https://www.bseindia.com/xml-data/corpfiling/AttachHis/c4bc17d4-3005-41cc-94aa-39b2c3f3541c.pdf 

• The Advocate General of Madhya Pradesh had awarded the contract for Implementation of Case Management and Tracking System to Dynacons. The requirement was for a solution that can assist in monitoring & time-tracking, Case file management, Case Allocation, Legal processing, collaboration between various stakeholders, etc. The web portal has been developed as part of the above project. (December 2017)

• Dynacons Systems and Solutions Limited (DSSL), announced that they have secured a Contract worth INR 20 Crores from Life Insurance Corporation of India (LIC) in August 2017.

• The terms of the contract with LIC of India include Supply of Laptops, installation, Microsoft Office Components, data migration services, and support of the same across the life-cycle of the IT asset, as per requirements of LIC in LIC's Central Offices, Zonal Offices, Divisional Offices, Branch Offices and all other units under these offices in India. The deal covers more than 2000 locations/offices of LIC across India.

• This is a significant win and demonstrates the capability of the company to deliver and implement large scale IT projects for customers on a PAN India basis. This contract will further enable the company to expand its reach across the country.

• This contract further strengthens the position of Dynacons as a National Provider of IT Managed Services.

• This contract will widen the geographic coverage of Dynacons and will be able to reach many TIER III cities and remote towns.

• As per the terms of the contract with LIC, DSSL will provide Managed IT Services for the IT Infrastructure located at LIC's different offices (PAN India) for Life Insurance Corporation of India. The Key Highlights of the contract are as below.
  
  - Total Assets covered under this contract - 60,880
  - Total number of Resources deployed under this contract - 209
  - Total number of offices including branches & satellite offices - 3090
  - Total no. of States Covered under this Agreement - Delhi, Punjab, Haryana, Jammu & Kashmir, Himachal Pradesh, Uttar Pradesh, Uttaranchal, MP, Rajasthan, West Bengal, Assam, Nagaland, Manipur, Tripura, Arunachal Pradesh, Mizoram & Meghalaya, Bihar, Odisha, Jharkhand, Chhattisgarh, Andaman & Nicobar islands.

COMPANY Tie ups :- 

              source :- Annual Report

http://www.bseindia.com/bseplus/AnnualReport/532365/5323650317.pdf

💢 FUNDAMENTALS :-

STOCK INFO
Market Cap	29.05 Cr.
P/E	15.57
52 W High/Low	66/17.70
Face Value	10
EPS	2.70
Book Value	28.31
Price/Book Industry PE	1.49 22.09

💢 SHARE HOLDING :- 

SHARE HOLDING PATTERN
Promotors	41.26%
FII	0.0%
MF	0.0%
Public/NII	58.74%
TOTAL	100%

Recently Promoter have increased stake in the company

💢 FINANCIALS :- 

souce :- BSEINDIA

• Company posting continuous Profit from FY13 to FY17....from 0.52 Cr. Net Profit to now 1.25 Cr. Net Profit.

• EPS Grown from 0.87 Cr.  FY13 to 2.10 Cr.  FY17.

• Revenue 58.70 Cr. in FY13 to 158.83 Cr. in FY17.

• Company is reducing debt. Debt to equity ratio is 1.06

• Company's Asset is increasing Continuously.

💢 TECHNICALS :- 

• Technically stock is Bullish.
• RSI Positive, Supertrend bullish and shown Hidden Divergence
• Increasing Volume from last week.
• Trading above All important Moving averages.
• PSAR Bullish Signal

Why I selected this Stock for Study :- 

• Trading at lower PE than industry PE.

• Promoter has increased stake. 

• Strong FY18 result expected 

• Strong Fundamentals and Financials

• Technically Bullish

• Huge Client list

• Wide spread Work area

• Company Tie-up with well-known service providers

• 80% of the total staff are technically trained & experienced.

• Order book from LIC, Madhya Pradesh HIgh court order, Godrej and Boyce order and recent NPCI order make this company reach to wide area of all major states on the India.

• Domestic market to get boosted due to Government focus on "Digital India", "Make in India" & "Smart Cities"

• Increasing penetration of internet in India with raoid expansion of 4G network is enabling business to look at Tier II & Tier III Cities.

• Annual Report :- http://www.bseindia.com/bseplus/AnnualReport/532365/5323650317.pdf

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VERDICT :- 

• REGULAR ORDER WINNING, INCLUSION AS FT-1000 HIGH GROWTH COMPANIES LIST MAKES THIS STOCK ATTRACTIVE.

• BY SEEING THE ORDER BOOK, IN FY18 TOPLINE WILL BE AROUND 200+ Cr AND EXPECTED NET PAT WILL BE MORE THAN 1.5+ Cr.

• TRADING AT PE LOWER THAN INDUSTRY PE.

• PROMOTER HAVE INCREASED STAKE FROM 36.37% TO 41.26% IS GOOD SIGN.

• TECHNICALLY BULLISH, ONE CAN SEE THE STOCK CAN MAKE NEW FRESH 52 WEEK HIGH OF 66+ AFTER Q4 RESULT OR WITHIN SHORT TO MEDIUM TERM

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THE ABOVE IS A RESEARCH REPORT NOT BUY/SELL RECOMMENDATION AND FOR EDUCATIONAL PURPOSE , AND SOME OF MY FINDINGS FROM OPEN SOURCE. ONE CAN CONSULT THEIR FINANCIAL ADVISER BEFORE INVESTING.

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Happy Investing

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NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”