Bartronics India (CMP: Rs.264) incorporated in 1990, Bartronics is a Hyderabad based company that started with providing solutions in Bar Coding, one of the oldest AIDC technologies, RFID, POS, Smart Cards working as AIDC division, RFID division, Smart Card Division and Retail-IT division in separate.The AIDC industry is moving rapidly towards the use of RFID in a number of high-value and high-volume market segments. The RFID market is expected to jump from $1.4 billion annually this year to as much as $3.8 billion in 2008, according to a study by Allied Business Intelligence Inc. It is still in a nascent stage but there are several factors, in addition to dropping chip prices, which are driving the growth of RFID as an enabling technology.
BIL’ product range includes Barcode scanners, Barcode printers, Barcode Decoders, Smart Card Readers, Data Collection Terminals (DCTs) and Portable Transaction Computers, Radio Frequency (RF) and InfraRed (IR) based equipment and Access Control Systems. It also provides PVC Cards, Magnetic Cards, Smart Cards and contactless/ Proximity Cards to its clients across the world.
Bartronics is a largetst provider and high-end supplier for Barcoding Printers and Scanners, HHTs, DCTs, Media Supplies like Direct Thermal Labels, Thermal Transfer Labels and Tags in addition to Universal Access Points and Vehicle Mounted computers. BIL’s clientele include government establishments, MNCs, large private sector corporates and the Retail Industry at large. A few of its prestigious clients are HLL, ABB, Hero Honda, ITC, Ranbaxy, TCS, L&T, Ranbaxy, Cummins, GM.
AIDC is now being seen as a radical and revolutionary data carrier and identifier discipline with principles and practices that can be applied virtually to every sector of industry, commerce and services where data is handled and needs to track and trace individuals, materials and equipment. Moreover, RFID is a technology that holds tremendous potential and BIL is certainly in a position to leverage its expertise.
Bartronics is poised to grow well in coming years. For its expansion and increase it's capacity to meet working capital requirements, the company raised around Rs.50 cr the company came to IPO market in the year end of 2005.
Bartronics has made significant entry into retail sector through POS hardware solutions. The retail trade in India @ 7 billion and growing at a rapid pace. Batronics has set up a presence in four countries in the region Bangladesh, Srilanka,Dubai and Mauritius.
According to a study by Allied Business Intelligence Inc's studyThe AIDC industry is moving rapidly towards the use of RFID in a number of high value and high volume market segments. The RFID market it expected to jump from $1.4 billion number annully this year to as much as $ 3.8 billion in 2008. It is still in a nascent stage but there are several factors, in addition to dropping chip prices, which are driving the growth of RFID as an enabled technology hence Bartronics will have a nice prospects in the coming days.
Bartronics posted decent financials for the Q 2, it posted Rs.28.84 sales turnover and the company gross profit margins declined little bit due to increased in expenses and it posted net profit of Rs.4.16 against Rs.4.77 Cr in the first quarter but when you compared to last year the same quarter the sales turnover and gross profit margins were far better in this quarter.
Having Rs.17.82 Cr equity and two days back Bartronics India Ltd approved for signing of Documentation for closing the FCCBs Issue and also approval for allotment of 500 Zero Coupon Unsecured Foreign Currency Convertible Bonds (FCCBs) of US $100,000 each for an aggregate amount of US $50,000,000 with a conversion price of Rs 290/-. 3. 16,48,110 Equity Shares were allotted against the Conversion of 55 bonds aggregating to US $5.5 million.
The future prospects of Batronics India Ltd is very bright the coming days. We expct that Batronics will post Rs.14 EPS for the year FE08 and Rs.22 in FE09 the present share price discounts FE08 earning by 18 times and FE09 earnings by 12 times only which are reasonably good and we expect that share price may touch Rs.300 in medium and Rs.350 in the long run.
