Although, my blog is about value investing in India, but I am not a pure value investor. I like to play according to the condition of the market. If ball is in right area then hit for six don't push for single which is very safe. If you are looking for pure value investor then I am not the right person . I feel lot of quality stocks are very expensive, they will give return, but one thing is sure they can't match their past performance and if growth numbers below par then it may be turn as bad bet at a current high price like it happened with Hawking Cookers. So, It may make sense to hold them, but not ideal candidate for new investment. We will have to find our alternate approaches. I feel better ways to make the money in current sitution(in fact always) to find bamboo types of value stock picks with less than the 200 Cr market cap.
What is bamboo stock pick?
If you water this bamboo in the first year, nothing happens. If you water it the second year, nothing happens. If you you water it in the third year nothing again happens. However, if you water it in the fourth year, it will grow 90 feet in six weeks.
It is not easy to pick bamboo type stock picks, but I am experimenting with it.
You may see some bamboo pattern in a lot of stocks e.g. Avanti Feeds which was around Rs 30 in 2001 and also around 30 in 2010.
I evaluated some the companies and finally zeroed on TechNVision Ventures Ltd because of it's a subsidiary Solix Technologies, Inc.. I have already brought around 20% of my desired allocation in it, but before further buying I need some inputs from the IT Technical Experts (Technical Architect) etc about its product and it's prospects . So, if you are Technical Architect, or have some technical background then please send your views about prospect of products of TechNVision / Solix Technologies, Inc at value2wealth.india@gmail.com I will take that as input for the next article on TechNVision Ventures Ltd .
Why TechNVision (Solix ) ?
There might be some big IT player like TCS, which can get benefited because of growth in the Big Data and Cloud but we can't get multibagger out of it. But TechNVision (Solix Technologies, Inc.) can be become mutibagger if it is able to ride on growth of Big Data, Hadoop and Cloud technologies. This stock is not yet discovered by the stock market since past performance is not impressive, but some IT biggies (Gartner , Cloudera , IGATE ,L&T Infotech, Apache , cognizant , Oracle , SAP ) see a lot of potentials in it.
Big Data and Cloud Growth prospects :
Just do little research about Big Data and Cloud growth prospects and you will see that it is going to six-seven times the growth rate of the overall information technology market . This is going to be the next biggest trend in the IT industry.
What is special in TechNVision (Solix Technologies, Inc ) ?
Past performance is not impressive but I believe growth is on inflexion point. It may be visible in next 4-5 quarters .
If you want to see special about TechNVision (Solix Technologies, Inc) then see the following Gartner Magic Quadrant released by Gartner in 2015 . Please note, Gartner is quite reputed name in forecasting and reaching IT Industry. Most of the biggest companies in the world, including Indian biggies like Infosys, TCS give their reference, and also use their research to target segments/market.
What Solix Technologies, Inc(market cap less than 30 cr) is doing with biggies like IBM , HP , Informatica which have a market cap of Rs 30,000 Cr to Rs 9,00,000 cr in the leaders segment ? It speaks about their product quality for Enterprise Archiving products. We rarely see Indian companies like this because maybe most of them are in service Industry.
Solix Big Data Suite is going to get traction in coming quarters.
Solix Technologies, Inc have received Cloudera CDH5 certification for the Solix Big Data Suite – Enterprise Archiving (version 2.1). By moving less frequently accessed data from production databases into Apache Hadoop, enterprise archiving improves the performance and dramatically reduces the cost and complexity of maintaining tier one systems.The Solix Big Data Suite provides secure, compliant, low-cost, bulk data storage for structured and unstructured data, and is an ideal platform for enterprise archiving and enterprise analytics on a petabyte scale.
As per my limited knowledge only other Indian company TCS has received similar certificates from Cloudera and KPIT is also on the way to achieve it. TCS has a similar comparable product called TCS ActiveArchive Big Data Suit .
If you have a good product then also it is very hard to fight with biggies . So, Solix is doing partnership with other biggies which need similar product as part of the complete System Integration but they don't have in house .
Most of the System Intgrators like IBM works as a front face with their clients, e.g. Big XYZ Bank to provide a complete solution . IBM can't have all the systems so they need multiple vendors which can fulfill the gap .
TCS has their own systems for archiving enterprise big data database so others have the choice to develop their own or work with partners like Solix .
When, I was researching this stock I got a pleasant surprise, when I saw IGATE which has a market cap of almost Rs 25000 Cr had announced in June2015 that they have tight up with Solix technologies ( Refer http://www.marketwatch.com/story/igate-partners-with-solix-to-provide-comprehensive-enterprise-data-management-solutions-2015-06-03 ) . We rarely see the biggies announce tied up a tiny company like this.
It again shows they think something good about the product of Solix Technologies. Now IGATE is going to be acquired by CapeGemini so now it will big player CapeGemini will work with Solix if they don't have in house similar product .
Even, cognizant technologies Ltd has also given some good weightage to Solix and mentioned them as their partner ( refer http://www.cognizant.com/partners/solix ) for providing complete solution .
Even, L&T inoftech also given good weightage to their partnership with Solix (Refer http://www.firstpost.com/business/biztech/business-tech/big-data/lt-infotech-partners-with-solix-to-offer-enterprise-data-management-solutions-1992465.html )
You can get a complete list of all partnership at http://www.solixcloud.com/solix-partners.htm
Compare with Peers :
If we ignore the market cap then there are two comparable peers in listed segments are Ramco Systems Ltd and 8K Miles Software Services Ltd . I have not done much research on these two companies, but these two are also having cloud based products but not sure about Big Data/Hadoop. In fact , 8K Miles Software Services Ltd also provides service to move their client on Cloud. 8K Miles Software Services Ltd was darling of market from last 2 years has given around 10x return in last two years . Even, Ramco Systems Ltd has also given 10x return in last 2 years or so . 8K Miles Software Services Ltd showed good numbers in the last year, while Ramco Systems Ltd is turned from red to green last year. Arun (arunthestocksguru.com) has quite bullish on Ramco (http://www.arunthestocksguru.com/2015/07/ramco-systems-ltd-can-cloud-player-take.html) while Porinju Sir (Porinju Veliyath) is bullish on 8K Miles Software Services Ltd from long time. Ramco System has a market cap of 2250 crores and 8K Miles Software Services Ltd has a market cap of 1500 crores while TechNVision Ventures Ltd has a current market cap of only 30 crores . TechNVision Ventures Ltd will also go on same path only if good product translates into good numbers of deals and good deals into good revenue and good revenue into good profit / EPS . It will not move fast just because of good products . Again, this stock we will have to give enough time don't sell if 2-3 quarter's number are below par.
You can see details of the Solix Big Data suits at http://www.solix.com/products/solix-big-data-suite/solix-big-data-suite-standard-edition
TechNVision Ventures Ltd has another subsidiary Emagia which also provide cloud solution for receivables management (http://www.emagia.com/products/emagia-cloud/)
Share holding structures:
TechNVision Ventures Ltd is quite closely held entity . One of the reason might be to avoid a hostile takeover . Promoter sharholidng is 74.32%, but in reality, it's around 84% . How? You will say what about SEBI 75% promoter shareholding . Officially, it is 74.32%, but Solix Esops Foundation Trust (4.72%) and Solix Employees Housing Welfare & Housing Trusts (4.72%) holds to gather around 9.44% . Even though TechNVision Ventures Ltd is old company, but they have reinvented themselves and working like some of the new era startups . I believe even Valaboju Narendra and Tornala Mohit Kumar might be closed to promoters and turned investors . Public floating stock is quite low so trading volume is also low , very hard to get shares .
1 . If you find this as interesting story, then spend around 1 hours in first hour on this video (https://www.youtube.com/watch?v=GMk1hPH9z1w) If the link doesn't work then search "Computer America Solix" . Sai Gundavelli (Founder and CEO) talked about Big Data and company prospects etc .
2 . Go through 7 page interview of Sai Gundavelli (Founder and CEO) at http://www.sramanamitra.com/2015/07/22/scaling-a-technology-company-against-major-competitors-solix-ceo-sai-gundavelli-part-1/
The highlight of this interview is their competitors got acquired by big companies like IBM, Informatica etc .
He answered one of the questions "Companies have been tapping us for potential acquisitions. Companies are never sold. They’re always bought. I think we’re looking for that magic moment. At this point in time, this product can make a billion dollars in revenue. I can confidently say that. I’ve got one customer who’s willing to pay $3 million. A lot of these companies are trying to do more than a custom project. We are productizing the entire thing. I don’t know whether we can become another mini-IBM but there is a possibility. Most probably, the company will get acquired. I’m not trying to sell."
They are hoping to make total 1 billion dollar revenue (6500 Cr) out of this product of Solix even if it makes 650 crores it will mutibagger for us . This is company view, but I need views of Technical Experts on it . Please send your detail email to me at value2wealth.india@gmail.com if you have a technical background .
Another point to be noted from his interview is that due to big data their deal size is increasing around 6-10 times . They are in the process of signing deals (not officially signed yet) of around 20 Cr with one of the largest financial institution of the world .
Usfull Links about Solix and Big data :
I will keep updating it
# Solix says SAP archiving will be available during the second half of 2015
http://directria.ulitzer.com/node/3348175
# Solix Big Data Suite: First ILM Application Framework for Enterprise Analytics on a Petabyte Scale
http://news.sys-con.com/node/3131218
# Gartner likes its improved search and reporting capabilities and the fact it supports Open Database Connectivity, Java Database Connectivity and Java and web servicers
http://www.cmswire.com/information-management/do-we-have-to-keep-all-this-darn-data/
# linkedin URL for updates
https://www.linkedin.com/company/solix-technologies
# How Application Tiering with HADOOP Reduces Infrastructure Cost
http://sandhill.com/article/enterprise-application-tiering-with-hadoop/
http://www.dataversity.net/infographic-how-application-tiering-reduces-infrastructure-cost/
# The Big Data promise
http://www.smartdatacollective.com/saigundavelli/318806/how-pivot-your-data
# SBI uses big data mining
http://timesofindia.indiatimes.com/business/india-business/SBI-uses-big-data-mining-to-check-defaults-biz-loss/articleshow/48397829.cms
Concern / Risk:
1. As always I love to take calculated risk, but If things don't turn out as expected then it is a risk, but current market cap is very much low as compare to my expectation .
2. If subsidiary Solix Technologies, Inc got acquired by some big company then definitely they will pay handsomely . But, it will be on hand of promoters to reward similar to minority shareholder since of the following structures of subsidiaries . So, It will be always good if some reputed investors come on the board and make sure they minirorty shareholders get the same reward as promoter .
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What is bamboo stock pick?
If you water this bamboo in the first year, nothing happens. If you water it the second year, nothing happens. If you you water it in the third year nothing again happens. However, if you water it in the fourth year, it will grow 90 feet in six weeks.
It is not easy to pick bamboo type stock picks, but I am experimenting with it.
You may see some bamboo pattern in a lot of stocks e.g. Avanti Feeds which was around Rs 30 in 2001 and also around 30 in 2010.
I evaluated some the companies and finally zeroed on TechNVision Ventures Ltd because of it's a subsidiary Solix Technologies, Inc.. I have already brought around 20% of my desired allocation in it, but before further buying I need some inputs from the IT Technical Experts (Technical Architect) etc about its product and it's prospects . So, if you are Technical Architect, or have some technical background then please send your views about prospect of products of TechNVision / Solix Technologies, Inc at value2wealth.india@gmail.com I will take that as input for the next article on TechNVision Ventures Ltd .
Why TechNVision (Solix ) ?
There might be some big IT player like TCS, which can get benefited because of growth in the Big Data and Cloud but we can't get multibagger out of it. But TechNVision (Solix Technologies, Inc.) can be become mutibagger if it is able to ride on growth of Big Data, Hadoop and Cloud technologies. This stock is not yet discovered by the stock market since past performance is not impressive, but some IT biggies (Gartner , Cloudera , IGATE ,L&T Infotech, Apache , cognizant , Oracle , SAP ) see a lot of potentials in it.
Big Data and Cloud Growth prospects :
Just do little research about Big Data and Cloud growth prospects and you will see that it is going to six-seven times the growth rate of the overall information technology market . This is going to be the next biggest trend in the IT industry.
What is special in TechNVision (Solix Technologies, Inc ) ?
Past performance is not impressive but I believe growth is on inflexion point. It may be visible in next 4-5 quarters .
If you want to see special about TechNVision (Solix Technologies, Inc) then see the following Gartner Magic Quadrant released by Gartner in 2015 . Please note, Gartner is quite reputed name in forecasting and reaching IT Industry. Most of the biggest companies in the world, including Indian biggies like Infosys, TCS give their reference, and also use their research to target segments/market.
What Solix Technologies, Inc(market cap less than 30 cr) is doing with biggies like IBM , HP , Informatica which have a market cap of Rs 30,000 Cr to Rs 9,00,000 cr in the leaders segment ? It speaks about their product quality for Enterprise Archiving products. We rarely see Indian companies like this because maybe most of them are in service Industry.
Solix Big Data Suite is going to get traction in coming quarters.
Solix Technologies, Inc have received Cloudera CDH5 certification for the Solix Big Data Suite – Enterprise Archiving (version 2.1). By moving less frequently accessed data from production databases into Apache Hadoop, enterprise archiving improves the performance and dramatically reduces the cost and complexity of maintaining tier one systems.The Solix Big Data Suite provides secure, compliant, low-cost, bulk data storage for structured and unstructured data, and is an ideal platform for enterprise archiving and enterprise analytics on a petabyte scale.
As per my limited knowledge only other Indian company TCS has received similar certificates from Cloudera and KPIT is also on the way to achieve it. TCS has a similar comparable product called TCS ActiveArchive Big Data Suit .
If you have a good product then also it is very hard to fight with biggies . So, Solix is doing partnership with other biggies which need similar product as part of the complete System Integration but they don't have in house .
Most of the System Intgrators like IBM works as a front face with their clients, e.g. Big XYZ Bank to provide a complete solution . IBM can't have all the systems so they need multiple vendors which can fulfill the gap .
TCS has their own systems for archiving enterprise big data database so others have the choice to develop their own or work with partners like Solix .
When, I was researching this stock I got a pleasant surprise, when I saw IGATE which has a market cap of almost Rs 25000 Cr had announced in June2015 that they have tight up with Solix technologies ( Refer http://www.marketwatch.com/story/igate-partners-with-solix-to-provide-comprehensive-enterprise-data-management-solutions-2015-06-03 ) . We rarely see the biggies announce tied up a tiny company like this.
It again shows they think something good about the product of Solix Technologies. Now IGATE is going to be acquired by CapeGemini so now it will big player CapeGemini will work with Solix if they don't have in house similar product .
Even, cognizant technologies Ltd has also given some good weightage to Solix and mentioned them as their partner ( refer http://www.cognizant.com/partners/solix ) for providing complete solution .
Even, L&T inoftech also given good weightage to their partnership with Solix (Refer http://www.firstpost.com/business/biztech/business-tech/big-data/lt-infotech-partners-with-solix-to-offer-enterprise-data-management-solutions-1992465.html )
You can get a complete list of all partnership at http://www.solixcloud.com/solix-partners.htm
Compare with Peers :
If we ignore the market cap then there are two comparable peers in listed segments are Ramco Systems Ltd and 8K Miles Software Services Ltd . I have not done much research on these two companies, but these two are also having cloud based products but not sure about Big Data/Hadoop. In fact , 8K Miles Software Services Ltd also provides service to move their client on Cloud. 8K Miles Software Services Ltd was darling of market from last 2 years has given around 10x return in last two years . Even, Ramco Systems Ltd has also given 10x return in last 2 years or so . 8K Miles Software Services Ltd showed good numbers in the last year, while Ramco Systems Ltd is turned from red to green last year. Arun (arunthestocksguru.com) has quite bullish on Ramco (http://www.arunthestocksguru.com/2015/07/ramco-systems-ltd-can-cloud-player-take.html) while Porinju Sir (Porinju Veliyath) is bullish on 8K Miles Software Services Ltd from long time. Ramco System has a market cap of 2250 crores and 8K Miles Software Services Ltd has a market cap of 1500 crores while TechNVision Ventures Ltd has a current market cap of only 30 crores . TechNVision Ventures Ltd will also go on same path only if good product translates into good numbers of deals and good deals into good revenue and good revenue into good profit / EPS . It will not move fast just because of good products . Again, this stock we will have to give enough time don't sell if 2-3 quarter's number are below par.
You can see details of the Solix Big Data suits at http://www.solix.com/products/solix-big-data-suite/solix-big-data-suite-standard-edition
TechNVision Ventures Ltd has another subsidiary Emagia which also provide cloud solution for receivables management (http://www.emagia.com/products/emagia-cloud/)
Share holding structures:
TechNVision Ventures Ltd is quite closely held entity . One of the reason might be to avoid a hostile takeover . Promoter sharholidng is 74.32%, but in reality, it's around 84% . How? You will say what about SEBI 75% promoter shareholding . Officially, it is 74.32%, but Solix Esops Foundation Trust (4.72%) and Solix Employees Housing Welfare & Housing Trusts (4.72%) holds to gather around 9.44% . Even though TechNVision Ventures Ltd is old company, but they have reinvented themselves and working like some of the new era startups . I believe even Valaboju Narendra and Tornala Mohit Kumar might be closed to promoters and turned investors . Public floating stock is quite low so trading volume is also low , very hard to get shares .
1 . If you find this as interesting story, then spend around 1 hours in first hour on this video (https://www.youtube.com/watch?v=GMk1hPH9z1w) If the link doesn't work then search "Computer America Solix" . Sai Gundavelli (Founder and CEO) talked about Big Data and company prospects etc .
2 . Go through 7 page interview of Sai Gundavelli (Founder and CEO) at http://www.sramanamitra.com/2015/07/22/scaling-a-technology-company-against-major-competitors-solix-ceo-sai-gundavelli-part-1/
The highlight of this interview is their competitors got acquired by big companies like IBM, Informatica etc .
He answered one of the questions "Companies have been tapping us for potential acquisitions. Companies are never sold. They’re always bought. I think we’re looking for that magic moment. At this point in time, this product can make a billion dollars in revenue. I can confidently say that. I’ve got one customer who’s willing to pay $3 million. A lot of these companies are trying to do more than a custom project. We are productizing the entire thing. I don’t know whether we can become another mini-IBM but there is a possibility. Most probably, the company will get acquired. I’m not trying to sell."
They are hoping to make total 1 billion dollar revenue (6500 Cr) out of this product of Solix even if it makes 650 crores it will mutibagger for us . This is company view, but I need views of Technical Experts on it . Please send your detail email to me at value2wealth.india@gmail.com if you have a technical background .
Another point to be noted from his interview is that due to big data their deal size is increasing around 6-10 times . They are in the process of signing deals (not officially signed yet) of around 20 Cr with one of the largest financial institution of the world .
Usfull Links about Solix and Big data :
I will keep updating it
# Solix says SAP archiving will be available during the second half of 2015
http://directria.ulitzer.com/node/3348175
# Solix Big Data Suite: First ILM Application Framework for Enterprise Analytics on a Petabyte Scale
http://news.sys-con.com/node/3131218
# Gartner likes its improved search and reporting capabilities and the fact it supports Open Database Connectivity, Java Database Connectivity and Java and web servicers
http://www.cmswire.com/information-management/do-we-have-to-keep-all-this-darn-data/
# linkedin URL for updates
https://www.linkedin.com/company/solix-technologies
# How Application Tiering with HADOOP Reduces Infrastructure Cost
http://sandhill.com/article/enterprise-application-tiering-with-hadoop/
http://www.dataversity.net/infographic-how-application-tiering-reduces-infrastructure-cost/
# The Big Data promise
http://www.smartdatacollective.com/saigundavelli/318806/how-pivot-your-data
# SBI uses big data mining
http://timesofindia.indiatimes.com/business/india-business/SBI-uses-big-data-mining-to-check-defaults-biz-loss/articleshow/48397829.cms
Concern / Risk:
1. As always I love to take calculated risk, but If things don't turn out as expected then it is a risk, but current market cap is very much low as compare to my expectation .
2. If subsidiary Solix Technologies, Inc got acquired by some big company then definitely they will pay handsomely . But, it will be on hand of promoters to reward similar to minority shareholder since of the following structures of subsidiaries . So, It will be always good if some reputed investors come on the board and make sure they minirorty shareholders get the same reward as promoter .
Share on Twitter If you liked above article .
Share on Twitter
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Disclaimer : Please treat this post as starting point of your research and not conclusion to invest in any discussed stock. As always , please take the advice of a SEBI qualified financial adviser which I am not .
Alternatively ,
If you are interested in reading multiple blogs from bloggers then please open your free account on http://www.feedly.com/ which I find good to read and track all the blogs .
Disclaimer : Please treat this post as starting point of your research and not conclusion to invest in any discussed stock. As always , please take the advice of a SEBI qualified financial adviser which I am not .
