Saturday, February 5, 2011

Multibagger : Sumedha Fiscal Services Ltd - BSE Code 530419 - CMP 27/-

Sumedha Fiscal Services Ltd - BSE Code 530419 - CMP 27/-
Sumedha Fiscal is a long established player in the Financial Services Industry. The company is a well known name in the small and medium enterprises group for it's investment banking activities and derives major portion of it's revenue from loan syndication. The company is one of the most undervalued company on the bourses and provides an opportunity for making an investment. Sumedha Fiscal Services Ltd is primarily into Investment Banking and Capital Market operations. The company derives 80% of it's revenue from Investment Banking Services like loasyndication, equity placement, etc while 20% from Capital Market operations, prominently Brokerage services and Wealth Management Services. The company has been growing at a breath taking pace and reported stellar numbers even during the toughest year i.e FY 09.
Corporate Services:-

Corporate services is the major earning source of the company. It can be categorized in various segments such as:- 
1. Equity Placement 
2. Financial Restructuring 
3. Merchant Banking 
4. Debt Syndication 
5. Mergers and Takeovers 
6. Portfolio resolution of Stressed Assets 

 This business segment retain edits position as the company's principal growth driver and revenue earner,accounting for 84% of income from operations in 2009-10. Income received from this division registered an increase of 47%(YOY) to Rs. 1,158.89 lacs in 2009-10 on account of focus on various large ticket size transactions by reputed corporate groups. 

Subsidiaries
 
 The company is having a subsidiary company which deals in Commodity. 
  • SFSL Commodity Trading (P) Limited is the subsidiary company of SFSL. 
  • Company has various Associate/ Joint Venture concerns viz:- 
  • SFSL Insurance Advisory Services (P) Ltd. 
  • SFSL Risk Management Services (P) Ltd. 
  • Capita Finance Services (P) Ltd. 
  • U.S. Infotech (P) Ltd. 
  • Seasoft Solutions Pvt. Ltd.     Expect at least 5 times return in next 2-3 years from now!!!