X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
i-flex: Scaling new frontiers... - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Mar 5, 2004

    i-flex: Scaling new frontiers...

    In adding another feather to its cap, i-flex's flagship product, Flexcube, has been ranked the number one selling banking solution in the world in 2003 by IBS, UK. This comes second year in running for the company that has brought much recognition to the 'Made-in-India' tag through 'Flexcube'. The company has gained significantly from the consolidation that is taking place in the global banking and financial services industry. Let us take a look at the company's performance in recent times.

    Being product-focused has resulted in high levels of volatility in i-flex's financial performance and this is indicated in the graph above. This is because of the fact that there is usually a time lag (usually 6 to 18 months) between i-flex entering into a contract with a client and implementing the entire product suite at the latter's site. Apart from impacting revenues, this affects the company's margins as it has to make huge investments in marketing and branding the product. Currently, i-flex derives more than 60% of its revenues from 'Flexcube' and this is set to increase in times to come. This would not only mean large investments in promotional activities but also greater addition to profits, as incremental revenues would directly flow to the bottomline.

    The company, however, does not seem to be resting on the past laurels of 'Flexcube' that has 170 customers to its name and a presence in over 75 countries. i-flex has been quite successful in graduating from one product to another. Earlier, the company had successfully migrated from 'Microbanker' to 'Flexcube'. Now, i-flex's portfolio also includes 'Revelues', a treasury product that already boasts of IMF (International Monetary Fund), among others, as its major client. The increasing penetration of 'Flexcube' in the US markets has further aided i-flex's cause. It is to be noted that i-flex's entry into the US markets was delayed due to a regulation that barred the company from seeking business from non-Citigroup entities till FY01. The revenue share from the US region now stands at around 40% and growing.

    At the current price of Rs 685, the stock is trading at a P/E multiple of 23x our FY05 estimated earnings. While the price fairly values the growth that the company is likely to witness in the next one year, a higher growth would depend on i-flex's ability to increase its penetration in the face of competition from both global and local players. Growth would also be determined by how the company moves on to newer products or upgraded versions of the existing ones.

     

     

    Equitymaster requests your view! Post a comment on "i-flex: Scaling new frontiers...". Click here!

      
     

    More Views on News

    Tech Mahindra: Our Revised View (Quarterly Results Update - Detailed)

    Aug 2, 2017

    A better than expected turnaround in performance results in a change in view.

    Wipro: A Decent Start to the Year (Quarterly Results Update - Detailed)

    Jul 27, 2017

    Digital services drive growth for Wipro in 1QFY18.

    Infosys: A Decent Start to FY18 (Quarterly Results Update - Detailed)

    Jul 14, 2017

    Infosys starts FY18 on an encouraging note with a stable performance.

    TCS: Currency Volatility Plays Spoilsport (Quarterly Results Update - Detailed)

    Jul 14, 2017

    TCS starts FY18 decently despite an adverse currency impact.

    HCL Tech: Ends FY17 on Expected Lines (Quarterly Results Update - Detailed)

    Jun 29, 2017

    Volvo partnership caps a good year for HCL Technologies.

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    ORACLE FINANCIAL SERVICES SHARE PRICE


    Aug 22, 2017 (Close)

    TRACK ORACLE FINANCIAL SERVICES

    • Track your investment in ORACLE FINANCIAL SERVICES with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks

    MORE ON ORACLE FINANCIAL SERVICES

    ORACLE FINANCIAL SERVICES - GEODESIC LTD COMPARISON

    Compare Company With Charts

    COMPARE ORACLE FINANCIAL SERVICES WITH

    MARKET STATS