Nucleus Software - Another cheap indian stock

Nucleus software is one of the the very few product development softwre companies in India. It provides sofware for Banking and Insurance sector.

Here is a summary from Nucleus Website:

Nucleus Software Exports Limited provides software solutions to the Banking and Financial Services Industry. For over 20 years, we have developed solutions spanning from Retail Banking to Corporate Banking, Cash Management, Internet Banking and Credit Cards.FinnOneTM, the Flagship product of Nucleus Software is a comprehensive suite for Retail Banking applications comprising of modules like Customer Acquisition System, Loan Management, Delinquency and Recovery Management, Deposits and Finance Against Securities.
Cash@Will and PowerCARD ® are the offerings from Nucleus Software in the area of Cash Management, Internet Banking and Credit Cards respectively.

Recently it was awarded:

-Nucleus Software’s FinnOneTM has been ranked ‘World's No 1 Selling Lending Software product ’ (for year 2008) by IBS Publishing

-Nucleus Software has been conferred the Best Independent Software Vendor (ISV) Partner (North India for 2008) awa.rd by IBM

There are more awards you can read at:
http://www.nucleussoftware.com/accolades.htm

Typically all the banking software is very sticky. It is tough to change the installed products unless it is very bad.

What can go wrong:
- International Competition
- M& A
- Rupee getting Stronger

Financial & Business Metrics

Moat: Medium
Mkt Cap: $214 Crores
Current Price - Rs. 66
Book Value: 66
ROE in the last three years: Around 30%
Debt: 0
Dividend: Paid a dividend of Rs.3 in the last three years
P/E: 3.5
I only wish the company gives back more cash to the share holders especially as the company has more than 100 crores in cash
you can find investor information at
http://www.nucleussoftware.com/investor.htm.

I personally think that is has medium moat and probably will do fine if you hold on to for next five years.