ABM knowledgeware

Dated: 21st Mach 2009

CMP is around Rs.45/-

Computerization of all government offices and projects will be a reality by not so distant future. So the scope for e-governance is very vast in a country like India. For a certain extent this sector of IT may be called as recession proof because the spending is coming mainly from state and central government,local bodies and autonomous governmentinstitutions. ABM Knowldgeware is a pioneer in this field.Company came into this field in 1998 and empanelled as a Turnkey solution provider forE-governance project by Maharastra Government,in thatyear.In 2000, It successfully implemented e-governanceproject for various govt institutions like HousingDepartment Mantralaya, Municipal Corporation ofGreater Mumbai, Thane Collectorate..etc.In 2003 ,ABM launched ABM MAINet® in Kalyan Dombivili Municipal Corporation(KDMC) as the first comprehensive e-governancesolution for Urban Local Bodies in India.In ,2005 company entered into North India through a major order for completeautomation for Engg Dept of Municipal Corporationof Delhi. In 2006 ,Govt. of India, Ministry of UrbanDevelopment has short-listed MAINet® for empanelment for implementation in Municipal Bodies all over Indiaafter detailed process of evaluation of Functionalities and Product Quality at an all India selection process.Company also spread it wings beyond India and completed various projects for some emirates of UAE.During this period company won a number of prestigious awards from various agencies.Lastly it won NASSCOM’s ‘Emerging 50 Leaders’ award in 2009.Company’s products include ABM MAINet®(Municipal Administration Information Network),ABM CARE® (Software for Grievances Management and Timebound Redressal), ABM MOIS 2000® and CRM for PowerDistribution Utilities . ABM, in consortium withHCL Technologies, has successfully implemented SAP HRMS(Human Resources Management) in KDMC in June 2008.In 2006 company implemented ABM AQUA® at Municipal Corporation of Greater Mumbai (MCGM).Earlier in 2006ABM Knowledgeware along with Siemens Informationsystems Ltd (SISL) and SAP have bagged an e-governancecontract worth Rs 40 crore from the Municipal Corporationof Greater Mumbai (MCGM),which is one of the mostambitious e-governance projects in India span over 5 years.Later the company taken over management of some keylarge ERP projects from consortium partners and the cost involved for such a takeover causes for a reductionin profit in last year,but expected to improve in the years to come. Moreover, successful execution of such large projects alone will help the company to pre-qualifyfor large projects in future.

Company has posted a turnover of 40 crore and a net profit of 6 crore in last year .For the nine month ended Dec .2009 ,it posted 27 crore turnover and a net profit of Rs.5 crore and expected to post an EPS of Rs.7/- for the full year.Out ofthe 10 crore equity ,promoters are holding around 60% and another 21% with large share holders .P.E player Indiaman fund Mauritius which is a sub account of Warburg bank has taken 3% stake in ABM in December qtr.Company is also paying dividend for the last 3 years. In nutshell ABM is a pioneer in a field with huge opportunitytrading at a P/E of just 6 ,can be bought by long term investors. Possible delay in payments because of the nature of its customers is the only major concern.