SWOT Analysis of Cadsys India Ltd - NSE SME Company

Incorporated in 1992, the company specialises in providing domain focussed GIS Solutions to US based customers through it subsidiary Apex Advanced Technologies LLC. The application areas of GIS include geospatial, field engineering survey, & engineering design services in domains like telecom, CATV, oil & gas and electricity.

Strengths -

- Domain specialisation in niche areas like Geospatial services where competition is limited.
- Collaboration with global MNCs - GE smallworld, HEXAGON Geospatial, esri, Autodesk, & Bentley
- Promoter pedigree
- Has a US focussed subsidiary Apex Advanced Technologies LLC to look at opportunities in US markets.

Weaknesses:

- Size of the company -> still unproven in execution of large projects.
- Working capital intensive industry.

Opportunity:

- IPO issued at attractive valuation of 2.5 PE fwd.
- FCF generating business leading to Cash rich balance sheet.

Threats:

- Constantly evolving technology.
- Forex Risk

The stock listed today in NSE SME Exchange at Rs. 84, up by 20% agains the IPO price of Rs. 70. Till 1:40 PM, 408000 shares had changed hands at an average traded price of Rs. 82.57. The stock hit an intraday high of Rs. 84 and low of Rs. 72.10.

Source:

- RHP of the company
- www.apexadvancedtech.com

Disclaimer: SME investments are subject to illiquidity risk & information asymmetry risk. This is not a buy / sell advise. Please do your own due diligence before buying / selling this stock.

Source : Equity Bulls

Keywords