Detailed analysis!!
📌To open data centers in various states, the Indian government is considering a number of projects. For ex, the UP-Data Center Policy established a target investment of INR 20,000 Cr 🔥 for the development of the 250MW data center industry. 💫
📍➡️Esconet Cloud Arm, ZeaCloud Services, secures 5-Year contract to modernize Morepen's Edge Cloud Infrastructure.✅
📌Recognizing the demand in the Indian market, Esconet introduced its brand, HexaData, specializing in high-performance Servers, Workstations, and storage systems. Additionally, Esconet's strategic collaboration with #NVIDIA has resulted its growth in the Artificial Intelligence (AI) and Machine Learning (ML) domain, enhancing its servers and workstations.💫
📌Promoter interview pts:-
➢We have 100% success rate and satisfaction rate.✅
➢We have repeated customers for HexaData brand.🔥
➢One of my favourite project is the Global Data centre which we built for ONGC, which is accessed by all of their offices across the globe.🔥 🔥
➢Our partners considers us as their own company.💫
➢We can grow at 50% CAGR in future.🚀
➢My dream is to have Esconet rated with an NPS of 95+.✅
📍INDUSTRIES they serve:- Defence, manufacturing, education, healthcare, logistics, telecommunications, legal service ,financial service and Media & entertainment.
📌📌 ➡️ ➡️
▪️Founded in 2012, Esconet Technologies ltd✅ provides high-end supercomputing solutions, and data center facilities that include storage servers, network security, virtualization, and data protection.
📌The company offers Servers and Graphics Workstations, Comprehensive Data Storage Solutions, Virtualization Software, Backup and Disaster Recovery Solutions, Data Centre and Access Networks, Advanced Software Defined Networks, Network Security Tools, Email Communication Systems, Databases with High Availability, and Log Management and Analytics Software.🔥
▪️The company also provides service and after-sales services which include IT Hardware Installation & Configuration, Deployment and Seamless Integration of Diverse IT Infrastructure Software, Infrastructure Management & Monitoring, Expertise in Private Cloud Setup and Management, Annual Maintenance Services, Managed Backup and Disaster Recovery Solutions, Data Migration Services, and Expert Consulting Services.💫💫
▪️➡️The company also offers cloud-based services through its subsidiary ZeaCloud Services catering to various business needs, e.g. disaster recovery services, managed cloud services, private cloud, and DaaS services.🚀
📌Listed peers P/E:-
➢E2E Network: 73
➢Netweb Techno: 166😮
➢Esconet : 50 ✅
📌AWARDS & RECOGNITION:-
➢Awarded "Top 10 Most Admired Companies in India 2023.” -Economic Times.🔥
➢Esconet Technologies Limited Recognized on Forbes India’s List of Top 200 Organizations with Global Potential(2023).🔥
➢Cloud Data Center Specialist award by INTEL✅ (2018).
➢Best SI Partner by AMD✅ (2018).
➢Most Significant Project of the Year by Veeam (2022).
➢ChannelWorld Premier100 Award ( 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2021 and 2022).🔥
➢Appreciation award by Hewett Peckard Enterpise✅ (2019).
📌About Hexadata SUPERCOMPUTER:-🔥
▪️This fusion of leading technologies enables an unprecedented level of performance for both single-threaded and parallelized tasks, positioning these systems as exceptionally versatile across an array of critical domains including scientific research, data analytics, financial modeling, and media rendering.🔥
➡️KEY Features:-
➢Unmatched Computational Power.✅
➢AI (Artificial Intelligence) and ML (Machine Learning) Optimization.✅
➢Advanced Graphics Workstations.🔥
➢Dedicated Data Storage Solutions.
➢Reliability and Enterprise-Grade Performance.💫
📌📌
▪️IPO price: Rs.84
▪️IPO size: 28.22Cr (excluding anchor size is: 20.21Cr)
▪️CMP:Rs.248
▪️Market cap: 306Cr
▪️P/E: 50✅
▪️EPS:4.94
▪️ROE: 75.54%
▪️ROCE: 59.11%
▪️RoNW: 54.83%
▪️Employees:47
▪️Debt/Equity:1.9
▪️Assets: 42.6Cr
▪️Total Borrowing: 10Cr (Reserves and Surplus:8.25Cr)
▪️Share Holding Pre Issue: 89.18%
▪️Share Holding Post Issue: 64.94%
📌FINANCIALS:
▪️FY24H1 Rev: 71.46 Cr🔥
▪️FY24H1 PAT: 3.06 Cr🔥(>FY23 full year)
▪️FY23 revenue is 96.9Cr as compared to 69 Cr(FY22), 41%✅ growth yoy.
▪️FY23 PAT is 3.04 Cr as compared to 0.72 Cr(FY22), 322%✅ growth yoy.
▪️120%🔥 growth in revenue in last 2 years.
▪️30400%🔥 growth in PAT in last 2 years.
(PAT margins of - (2.28) % (FY21), 1.06% (FY22), 3.21% (FY23), 4.28% (H1-FY24).✅)
(📍Increase in Revenue is due to competitive advantage and increase in govt orders)
📌Revenue Bifurcation:-
▪️Government:- 25-36%✅
▪️Other than Government:- 64-75%✅
📌IPO funds:
From the net proceeds of the IPO funds, it will utilize Rs. 16.00 cr. for working capital, Rs. 2.50 cr. for investment in wholly owned subsidiary i.e. Zeacloud Services Pvt. Ltd., and the rest general corporate purposes.
📌➡️CLIENTS:
➢Ministry of Defence🔥
➢National Informatics Centre-MeitY✅
➢National Informatics Centre Services Inc. – MeitY✅
➢IIT🔥
➢Bharat Electronics Limited💫
➢ONGC✅
➢SIEMENS🔥
➢Morepen lab.
➢MapMyIndia🔥
➢Engineers India Limited
📌SECTOR GROWTH:
▪️The global supercomputer market is projected to increase at an impressive CAGR of 10.5% and hit a valuation of US$ 19 billion by the end of 2033, up from US$ 7 billion in 2023.✅
▪️The global server market size is anticipated to reach USD 175.29 billion by 2030, growing at a CAGR of 9.3% from 2023 to 2030, according to the latest study by Grand View Research, Inc.✅
▪️India Server Market was valued at USD 1602.97 million in 2022 and is expected to register a CAGR of 7.19% during the forecast period, owing to a rapidly increasing investment in Data Centre due to increased usage of cloud services in the country.✅
▪️Cloud System Management Market Size was valued at USD 2.1 billion in 2022. The Cloud System Management market industry is projected to grow from USD 2.34 Billion in 2023 to USD 5.59 billion by 2032, exhibiting a compound annual growth rate CAGR of 11.50% during the fore2023 - 2032).✅
▪️In order to stop the spread of COVID-19, India went into lockdown. This led to the country's remote working policy, which has been substantially backed by cloud computing solutions and enables employees to do jobs effectively from any place. On the cloud, such as businesses and governments can effectively handle a lot of data.🚀
▪️With more than 1 billion mobile devices and 45 million internet users, India's data center growth is outpacing that of the rest of the world.🔥
📌STRENGTH:
➢Partnerships and Alliances.✅
➢Experienced Promoter and management team with strong industry expertise and successful track record (promoter experience of over 20 years🔥).
➢Long term relationship with clients and repeat & diversified business.(Marque Clients✅)
➢Versatile, Technically Sound and young operation Team, which understands creativity at its excellence.
➢Well versed and equipped with advance technology.🔥
➢Track record of growth and profitability.
📌FUTURE PLAN:
▪️Provide tailor-based services as customer desires.
▪️Technological enhancements.✅
▪️Continued focus on post sales services.
▪️Focus on increasing revenues by leveraging core competencies and grow their business.
▪️Continue to enhance their core strengths by attracting, retaining and training qualified personnel.
📌Disclosure: Not a buy recommendation. only for study and education purpose. Please consult your financial advisor before investing. Although the write up accurately reflects the personal view of the author, there may be manual/human errors in the writeup. Please stop investing blindly. 🙏🙏