Can I buy Chakkilam Infotech at these levels of Rs 7? It has recently broken the 52 week high and wavering in the range of 7 and 9?

Chakkilam Infotech?

There are a few thousand stocks listed on the BSE.

From those few thousand stocks, why did you select Chakkilam Infotech?

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May be because of Penny stock and he feels that this will give huge up move? . .

7x2 = 14. Only Rs. 7 needed. Easy.

700x2 = 1,400. Rs. 700 needed. Tough.

Life is simple.

My first (and last) investing tip (since investing also includes punting):

Check out ANTGRAPHIC (NSE). 20% price band. CMP Rs. 0.45.

Revenues of Chakkilam Infotech:

FY 2000: 0.21 crore
FY 2001: 1.55 crore
FY 2002: 3.12 crore
FY 2003: 3.25 crore
FY 2004: 3.42 crore
FY 2005: 5.15 crore
FY 2006: 5.21 crore
FY 2007: 6.07 crore
FY 2008: 7.15 crore
FY 2009: 5.07 crore
FY 2010: 5.03 crore

Profits of Chakkilam Infotech:

FY 2000: 0.04 crore
FY 2001: 0.25 crore
FY 2002: 0.50 crore
FY 2003: 0.71 crore
FY 2004: 0.45 crore
FY 2005: 0.27 crore
FY 2006: 0.22 crore
FY 2007: 0.17 crore
FY 2008: 0.34 crore
FY 2009: 0.07 crore
FY 2010: 0.13 crore

The company had done an IPO in January 2004.

At that time, it had reported a profit margin of 21.8% for FY 2003.

In FY 2010, it has reported a profit margin of 2.6%.

Another example of companies that report high margins just before an IPO and low margins in subsequent years.

In my opinion, the fair value of this stock is between Rs 1 and Rs 2.

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I was just looking through all my posts on this forum..I found this one to be at 38 today and found that they recently acquired a company with revenues higher than their own.See this article on Economic times and claim to be the largest independent testing services companies.

Competition wise Thinksoft is a company in independent testing and they went for IPO at Rs 125 with $15 million revenue and from the article the revenue for chakkilam after acquisition is 18 million... so now at 38 is this stock underpriced meaning is it a good buy?

I want to know when a company acquires another company what would be the fair value of the stock? What needs to be considered..EPS, PE, profits or what is it?

Can the moderator change the name to Cigniti Technologies or a new thread has to be created for this?

The name of the company has been changed to Cigniti Technologies Limited.

I have changed the title of the thread.

The company has reported profit of Rs 0.32 crore in the last 4 quarters (including Q3 of FY 2011-2012).

The market cap of the company is over Rs 80 crore. (The market cap figure shown by moneycontrol.com is based in Q2 capital structure and thus is incorrect).

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The unaudited results are there on BSE website and there is a huge uptick in the revenue by about 1000%, 25 crores is the revenue this quarter.