Value Stock - Micro Technologies India Ltd

About Micro Technologies:

Micro Technologies (India) Ltd. is an IT based company, a leading global developer, manufacturer and marketer of security devices for its clients across the globe. Product lines include the much-needed security devices, life style and support systems and web-based software. Micro Technologies has a history of leading-edge security solutions products. This tradition continues through a singular focus on innovation, advanced technology and making the life of its clients safe, secure and manageable in terms of security, time and money one of the most important defining characteristics of a security and life support solution based company in the early 21st century. It is one of the most valued security solutions across the globe and has been accorded with many national and international awards for its growth and R & D. Micro Technologies aims at displaying not just the technological innovation and prowess but also the product diversity in various segments of vehicle, premises, mobile, other assets and now entering Energy & Health Segments.

This has good history of Awards:


Micro Technologies wins the 'Amity Corporate Excellence Award'.

Accorded with the "Deloitte Technology Fast 500 Asia Pacific Award" for being one of the 500 fastest growing companies in Asia for two consecutive years- 2007 & 2008.

Awarded with the 'Deloitte Technology Fast 50 (India) Award' for two consecutive years-2007 & 2008.

Micro Technologies wins the Dun & Bradstreet - ECGC - Indian Exporters' Excellence Award.

Micro Technologies bags Maharashtra IT Awards, 2006.

Dr. A P J Kalam, former president of India, felicitates Dr. P Sekhar for his significant contribution in the security segment.

Micro Technologies and Bharti Airtel Limited ties up to offer Micro LMTS (Lost Mobile Tracking System) to secure the mobile handsets of Airtel subscribers.

Micro Technologies ties up with MTNL to offer Mobile security solution-Micro LMTS to its Mumbai & Delhi Subscribers.


Micro Technologies has entered into a strategic agreement to market Micro Products and its licenses to Sri Lanka.


Launched new security products Micro MCS (Mobile Controller System), Micro SAMS (Student Attendance Management System) & Micro WSS (Wi-Fi Security System).


Launches an exclusive range of Products such as Micro BTS (Buddy Tracking System), Micro LNTS (Lost Notebook Tracking System) and Micro ISS (Intelligent Surveillance System).

Mkt Cap: 83 Crores
Sales last three years 2006/2007/2008: 59 cr/107 cr/ 188 cr
Sales Growth: 82%/ 76 %
Profit After Tax: 18 / 31/ 55
P/E: 1.5
Current Mkt Price: 75
ROCE: 16.8/22.6/24.9
you can get more details at
http://www.equitymaster.com/research-it/company-info/comp_info.asp?h_CodeScrip=MITH

you should also read their annual report at
http://www.microtechnologies.net/Investor/pdf/financialresult/fy0708/Full-Annual-Report.pdf

What can go wrong in this stock:
- Cheap Imports from China/other countries
- Better technologies


I never like a company that need to constantly innovate and need money for capital expenditure but this is a market leader and like the way they are creating their brand so that they can get the share of the mind by improving their moat. India has huge market for security products and it is a market leader. In next 10 years, there is plenty of scope. The stock is selling extremely cheap(1.5 times earning). This could be a 10 bagger with medium risk. Last quarter it made 20 crores and it has a book value of 190 rupees. I have never seen such a great stock with so much potential selling cheaply.

There are FCCB bonds and they could potentially dilute in 2012.

As there is no free money. I am still trying to figure out what is the catch? Let me know if you know more about this company.