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.
Polaris: E= MC^3 - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Nov 30, 2000

    Polaris: E= MC^3

    Nothing wrong with the formula, only it is not by Einstein but by Arun Jain. No he is not a physicist, but the Chairman and Managing director of Polaris. According to the company

    E= MC^3 stands for Energy = Motivation x Commitment x Confidence x Creativity

    The reasons for propagating this formula are not hard to find for Polaris. It has grown with a lot of energy over the five years at a compounded annual growth rate of 91%. But what is remarkable is that is topline jumped from Rs 605 m in FY99 to 1603 m in FY00, a growth of 165%.

    The major revenue source for Polaris is the banking and financial services vertical. Polaris prefers to call this BFSI – (Banking, Financial Services and Insurance). This particular sector has been the major revenue driver for Polaris. Citibank has been a major client for Polaris with its services being used by 12 groups of Citibank. This is going to be a major revenue driver in the times to come. Due to the Insurance sector opening up there is going to be a large demand for Insurance related software. Also with the consolidation of the financial services industry all the three major offerings (banking, financial services and insurance) will be offered under one roof which means a lot of systems integration opportunities will come up. All this opens up a very big market for the company.

    Polaris is also entering the arena the of enterprise knowledge management. This field is still growing and looks to be very promising. As organisations get more knowledge oriented, an important designation in the organisation that is going to be created is CKO (chief knowledge officer). As this field is very nascent, it will translate into higher billing rates for Polaris.

    Software components is another area in which Polaris has got into. The idea is to resell its efforts by creating standard components, which can be sold to other software product development companies. This would result into lower development costs for Polaris. In line with this strategy, Polaris developed a component-based, complete ERP (enterprise resource planning) product for a European software firm that offers software solutions for the construction industry. This can be resold to other ERP developers.

    Networking & Telecom is another area of Polaris’s interest. It has created a product CygNet, to monitor and control diverse network elements with TeNet Group of IIT, Chennai and their partners. This is an area that is quite niche but has now attracted a lot of attention. This sector is going to be fiercely competitive in the times to come.

    Polaris is also getting into products. Some of its successful solutions have been created as products. It has developed a branded outsourcing service - ENTITY - your ExteNded Technology FacilITY. Basically projects done for companies on a 20% onsite and 80% offshore basis.

    As we can see Polaris has its hand in many pies, but the real growth for the company will be based on its experience in the BFSI sector in which it has a strong presence. The company is very focused in its growth strategy going by the kind of performance it has shown over the past few years. The outlook for Polaris is positive because it is aware of its strengths and is leveraging on them in a focused manner. Quite often it happens that with such vast opportunities around companies tend to lose focus. Polaris has not, as yet.

    Polaris is trading at a P/e multiple of 17x its first half 2001 annualised earnings, which is significantly lower than its peers in the industry.

     

     

    Equitymaster requests your view! Post a comment on "Polaris: E= MC^3". 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

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    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

    POLARIS CONSULTING SHARE PRICE


    Aug 22, 2017 (Close)

    TRACK POLARIS CONSULTING

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

    MORE ON POLARIS CONSULTING

    POLARIS CONSULTING - BARTRONICS INDIA COMPARISON

    Compare Company With Charts

    COMPARE POLARIS CONSULTING WITH

    MARKET STATS