08/10/2017 - SMARTLINK

SMARTLINK NETWORK SYSTEMS LTD. – SMARTLINK : CMP – 105.35

Smartlink Network Systems Ltd. is one of India's leading networking companies. It was established in the year 1993 to prop the Indian market in the field of Network Infrastructure. Pioneer in the field of Active networking, it offers an integrated value proposition from design and development to sales and marketing, and service and support. The Company has a robust product portfolio and a nationwide reach through its network of national and regional distributors, resellers and system integrators.  Business outline includes :

DIGISOL - Active Networking Solutions

DIGILITE – Motherboards and More

DIGICARE - Service & Support

DIGITAB - Tablets

Research & Development

Electronic Manufacturing Services

Contract & In-house Manufacturing

This company has given a fantastic breakout in technical terms. On the daily basis, the company has given not only a breakout but it has made a good rounding kind of pattern also. Even in a weekly chart it is indicating a start of a new up move. of course one has to buy in dips only as it has gone up and now reaching to its short term resistance zone so one should buy this stock in a staggered manner with the strategy of “ Buy On Dips ”.

One may start buying with small quantity and on every dip till 100. The good targets can be set at 10 % & 20 % i.e. 115 & 125 kinds of levels. a strict & closing basis StopLoss must be maintained at 95. And once it runs again above 95, one may re-enter again.

The Revenue has gone up at 5.01crores this quarter from 3.97 crores in previous quarter. Net Profit has jumped up hugely by 300 % from 0.70 crores to 2.74 crores on QoQ basis. EPS also jumped up 3 times to 1.21 from 0.29. The Operating Profit Margin has doubled from 47.24 crores to 86.64 crores. The Net Profit Margin has also jumped hugely up by slightly more than 300 % from 17.70 % to 54.68 %.

The promoters are holding nearly 74 %. The Promoter’s stake has been increased a little bit on QoQ basis. The company is virtually debt free. Stock is trading at 0.74 times its book value. The company has been maintaining a healthy dividend payout of 120.70 %.

So, overall the company is good to invest in for a short to medium term time frame with a Stop Loss of course.