Teledata Informatics

Q. Kindly provide information about the company Teledata Informatics.

A. Teledata Informatics (BSE Code: 532358) with a face value of Rs 2 is currently trading at Rs 6.9 with a 52 week high/low of Rs 13.92/4.46. It is a software solution providing company in the field of enterprise resource planning (ERP) and in the verticals of education, energy and telecom sectors. Through its subsidiaries and operations the company has a presence in 48 countries and 166 locations. For the quarter ending September 2009, the company posted sales of Rs 148 crore, down by 27 per cent from last year same time. But it was its profit that was hammered out of shape and witnessed a drastic fall of 96 per cent. The profit for Q2FY10 was just Rs 1.94 crore against Rs 43.35 crore in Q2FY09. The reason for such a fall may be attributed to almost a three-fold increase in the interest expense apart from the decrease in its topline. For the last trailing 12 months the company’s earning is negative and therefore its PE could not be ascertained. Moreover, we feel that there are some serious concerns about the company because despite showing a topline of more than Rs 700 crore in the last three years and a debt equity ratio of below 1, the company has not performed at the bourses. Even its promoters and FIIs have been offloading their stake in the company since last year and the former have reduced their stake from 25.23 per cent in the quarter ending September 2008 to 16.23 per cent in September 2009 while the FIIs reduced their share during the same period from 8.09 to 5.43 per cent. Therefore we suggest that you should stay away from the scrip.