DLINKINDIA closes
at ₹ 88.70 with a gain of +5.2 % on 23-August -2019
with formation of a Long Red Candle
on Daily Price Chart. Technically, DLINKINDIA is Trading below its 200DMA and in long
downtrend since 2015.
About the Company : D-Link (India) is
engaged in marketing and distribution of networking products in India and SAARC
region. It offers products that extend across home, small-and-medium, and
enterprise network equipment, including Ethernet switches, firewall security,
wireless access points, Internet protocol (IP) surveillance cameras, networking
storage, Internet of Things (IoT) and structured cabling etc.
Valuations : DLINKINDIA is now Trading at X0.9 of its Value ( March
2019 earnings ). If we factor its FY2020(E) earnings, it is now Trading at ~20%
Discount. Enterprise Value Annual /Share is ₹86.66 ( March 2019 basis ). Net
Cash / Share is ₹8.70 (March 2018)
Why Buy : Business
risk profile will witness healthy improvement over the medium term driven by
increasing revenue from project businesses. Financial risk profile may remain
healthy because of absence of any major capex and limited reliance on working
capital debt. Revenue growth of at least 15% and profitability of
above 6% is expected in next FY.Liquidity is adequate. In the absence of capex plans and repayment
obligations, cash accrual, expected at Rs 20-30 crore each in fiscals 2020 and
2021 will support liquidity. Also reliance on short-term debt is minimal with
funded limit utilisation at about 5%. Cash surplus, at Rs 24 crore as on March
31, 2019, is expected to remain healthy over the medium term
We may BUY / Accumulate DLINKINDIA
at CMP or Lower level
Target : ₹ 145-180
Stop: Loss : ₹ Nil ( Accmulations
Basis)
Time Frame: 24-36 Months
Red Flag : NIL
Disclaimer : We
are / may going to take exposure shortly.
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of return based on Fundamental Valuations of Stocks, a follower of EPV
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