Stock Pick From Software Industry And Miscellaneous Sector

Cyient  BSE: 532175 | NSE: CYIENT | ISIN: INE136B01020 | SECTOR: COMPUTERS - SOFTWARE

Cyient earns 35.8 per cent of its revenue from aerospace and the defence sectors. A month ago the company acquired Global Services Engineering-Asia, an engineering and repair unit of the US-based aircraft engine manufacturer Pratt and Whitney Services Pte Ltd. The acquisition will give Cyient the capability to provide aftermarket services for the aerospace industry in the Asia-Pacific region. Asia Pacific contributes 12 per cent to Cyient’s global revenue. The region grew 27.8 per cent annually in the latest quarter. This is the fourth acquisition by Cyient, which had cash reserves of Rs 661.4 crore at the end of the June quarter. Two days ago, it had to sell its entire stake in Infotech Enterprises Information Technology Services (P) Ltd., a wholly owned subsidiary engaged in IT services with intent to focus on its core engineering services and DNO businesses. As per the management, the impact of this transaction on EPS is expected to be neutral.

Advanta . BSE: 532840 | NSE: ADVANTA | ISIN: INE517H01028 | SECTOR: MISCELLANEOUS

Advanta is engaged in research and development of hybrid seeds using germplasm. UPL (formerly known as United Phosphorus Limited) holds more than 50 per cent stake in the company. For the first time the company has introduced GM corn in the southern part of the US. The company expects good demand in the second half of the year from South America, the US and some of the international markets. The rupee has been getting a bit weaker versus last year which has helped the company report better numbers in terms of sales. The company has foreign
subsidiaries with 80-85 per cent business outside and on INR translation the business result will be better. Last quarter, the company earned 25 per cent revenue from Australia and the US each whereas Thailand and other international sectors contributed 15-20 per cent each.