Foursoft, a Hyderabad based IT company focussing on the supply chain space, finally showed some life last week after months of underperformance. The scrip moved from Rs 40 to Rs 58 in about 3 days. On Friday, it was up 20%.
Not sure what is the driver, the one news item was this –
Four Soft (4S) (NSE: “FOURSOFT”, BSE: 532521) has signed the contract with Midl Integrated Logistics B.V. Nijmegen (The Netherlands) to implement its web centric warehouse solution 4S eLog. 4S eLog is a web-centric Warehouse Management System aimed at Logistics Service Providers.
Foursoft had seen investment of Rs 25 crore by Kotak’s PE fund in Sep’05 at a price of Rs 63 or so. Check the magnitude of underperformance. The stock market has doubled since then, while Foursoft had fallen around 30%. Now, atleast it is somewhat closer to Kotak’s investment price.
Not sure if Kotak is still invested. No one from Kotak is on board. Sarath Naru of Ventureeast is on the board. Dont think Ventureast is invested in Foursoft.
The scrip needs to double atleast to justify Kotak’s original investment decision. Results this year arent good. Net profit is down 60% or so for 1H08, topline is flattish. The M Cap is only around Rs 110 crore tho, and the company quotes at maybe 12-13x FY08. So it isnt expensive. If there is some business pick up, then the scrip could move further.
