Visesh Infotecnics - A Multibagger Story

Visesh Infotecincs (Now name changed to MPS infotecnics) was founded by CA Peeyush Agarwal , who co funded the founder (& longtime friend ) of One97 , (holding company of PayTM) Mr Vijay Shekhar Sharma...who later sold that 8 lakh investment stake in One97 for 87 crore.

It is the only listed company in the stock market having E recharge payment , wallet, app & site.


About Chairman & founding Director Peeyush Agarwal-

Mr. Peeyush Kumar Aggarwal serves as the Managing Director of OMKAM Capital Markets Pvt. Ltd. Mr. Aggarwal has over 22 years of experience and has over 14 years as a practicing CA in the field of Corporate Laws, Finance & Taxation, Project Management, Import & Exports, IT Consultancy etc. He is a first generation Entrepreneur having a clear business vision and practicing a hands- off approach, he has mastered the art of Mergers & Acquisitions. His business interests are in the areas of Information Technology (controlling stakes in Visesh Infotecnics Ltd. Dial One97 Ltd. Interworld Digital Ltd. Blocks.com Technologies Ltd. e-shoppers India Ltd.); Share Registry (MAS Services Ltd. - India's oldest Share Registry); Broking (Shares, Commodities, Insurance) and Construction & Hospitality. He serves as the Chairman at Visesh Infotecnics Ltd. He serves as the Chairman of B.P. Capital Limited. He serves as the Chairman of the Board at Advik Laboratories Ltd. and has been its Director since July 31, 2013. He has been a Non-Executive Director of Interworld Digital Ltd. since November 18, 2015. He serves as a Director at Indika Overseas (P) Ltd. Powerpro Infotech (P) Ltd. Omkam Group of Companies, Vrinda Portfolio (P) Ltd. He served as Interworld Digital Ltd. (formerly known as Interworld.com Ltd) until November 14, 2013. Mr. Aggarwal serves as a Director at Manabarrie Tea Co Ltd. He is a Fellow Member of the Institute of Chartered Accountants of India.




PRODUCTS & SERVICES-
Visesh has among its many product & services -

1. UVA POINT (E RECHARGE POINT) - It has developed India's largest retail network program of VAS, which is called the UvaPoint,which is a single point recharge system., It also has presently has about 25000 retail outlets in North India...mobile e recharging sites, apps, for retailers & distributors, about 12 apps on google playstore including KYC Aadhar , Jubilant Life sciences - Purchase order management system app for Jubilant etc

2. SignDomains™ - India’s first ICANN Accredited domain registrar which offers on-line domain registration of top level domains (TLD) including .com .net .org .info .biz .in etc.

3. AADHAR ENROLMENT AGENCY -It is an authorised enrolment agency with UIDAI registrar namely - CSC e-governance Services India,

4. OLA PAYMENT MERCHANT: It is merchant partner of OLA Cabs, so every revenue to OLA is revenue for Visesh.

5. SOFTWARE DEVELOPMENT : The company has developed a banking software & banks now in full swing, it would be put to use.


Demonetisation has created a hug oppurtunity out of nothing in where the E-wallet & E payment companies stand to benefit immensely in the long run. Visesh's UVApoint in the long term may not scale to PayTM's levels , but since it already has running infrastructure, offlline stores, so in the long run any big payment company - be it Reliance Jio, Paytm etc could also in future look to takeover Visesh's UVA & make use of its infrastructure.


FINANCIALS -

· Book Value 1.18 Rs , about 3 times of share price 0.40 Rs (on 12/12/2016), so even if company liquidates tomorrow, so still get 3 times your money.

· On Quarter ended Sept 16, company earned Net profit of 83 Lacs & Cash Profit of 1.01 Crore.

· Debt is only 26 Cr compared to Equity Net worth of 439.55 cr, giving very comfortable debt equity ratio of 0.06 times, and also interest cost will not put much pressure on earnings.



REASONS THAT VISESH WILL GROW INTO VERY GOOD COMPANY-

· Its the only listed E wallet, E Payment company & because of demonetisation & cashless payments increasing so it has a good future ahead of it.

· The company has established infrastructure in form of 25000 offline stores, e payment apps for recharge,DTH, electricity, utilities...is OLA merchant banker...Aadhar CSC Services...making its chances of increasing revenues from products & services very high.

· The directors have just decided to sell a flat (commercial space) in connaught place delhi, it would bring in 5-10 crores in revenue, so can be implied that directors are raising money to do something significant especially related to their increase in business due to demonetisation (because if not then why would they sell the flat especially when after demonetisation , property prices have fallen as there is very less demand... its facebook page does say that watch out for this space for new announcements).

· Low debt, high equity net worth

· The famed Stock Market Guru Ramesh Damani had once advised to keep visesh in small quantities , so he must have seen something in Company's Management....

· There is a court case in portugal, where company's 88 Lac USD were wrongly debited by bank, so resolution of case in company's favour (which is quite likely as per Portugal's advocates) will drive up company's cash flows & share price. In 2008, One USD was 44 INR compared to today's 66 INR, so favourable increase in favour of Visesh is 50% , and from 2008 to 2016, 8 year's Interest at rate of 5% equals 40% of amount ... So on winning the case, visesh would get (50% + 40% ) 90% more than original amount ie 88 Lac USD * 190% * 66 Rs = 110 Crore Rs, almost one-third of its paid capital, net increase of (110- 39) 71 crore over the original amount of Rs 39 crore(88*44). This increased cash flow , or non operating income of 71 Crore Rs in one single financial year , which is 8500% more than profit of 2015-16 and 20% ROCE.... Imagine the increase in value & share price due to this huge increase in earnings.

· Down side is limited , up side is very high...you spend 5-6000 monthly as wasteful expenditure.. think you have kept it aside for 5-10 yrs or spent it fully, then see after 5-10 yrs, if nothing happens , it wont hurt you, but when it does rise, its gonna be very good company.

· PayTM's 1% stake sold at 325 crores in Nov 2016, so its assumed valuation is 32500 crores....its share was selling in grey market on Abhisheksecurities.com at 5000 Rs on September 2016...So assuming UVA point is 0.1% - 0.5 % of PayTM ... its value should be 5 Rs...but after demonetisation PayTM's share price is even more valuable...so one can only guess how much upper side visesh is going to jump.

· Now that PayTM is such a big product all over india ... it will require some offline stores in some places so that it can leverage its online presence to make its PayTM Bank or even for future products of the to be launched AliBaba ETailing business...in that case it will look for someone with already existing infrastructure & experience in this sector...& who has a considerable offline presence in that field...? ...so if any one wants to start an already existing business setup of e wallets, offline retail stores for support, E KYC authentication, Ola tie up, & other B2B & outsourcing services, he can buy 53% shares in public 203 Cr shares X 0.15 Rs = 21 Crores ... cheap price for a sector that is hot & reap with demand for many years...you can only guess how many businesses want to get into digital transactions or even scale up their existing digitransaction businesses....Oppurtunities are endless

· Considering 10 year horizon, giving ample time to visesh to generate clients, build tie ups, grow incomes & profits, there are only three possibilites -



SCENARIO

RESULT ON YOUR INVESTMENT


1

After being in business for 10 years from demonetisation,Visesh goes to 10-20 Rs per share or even more

Shareholders get multiple times returns on very little investment…


2

In 10 years visesh posts no profit & Visesh remains at 10 - 30 paise

The small amount of 10 Thousand you invested remains same or gives loss of few thousands..loss being very little compared to oppurtunity


3

Visesh goes under liquidation

Visesh current book value is 1.16 per share, so assuming even if after 10 years no profit occurs, book value reains same & share holder get 1.16 Rs on investment of 30 paise…which is 400% gain.



So in under all three possibilties, you stand to gain in more than half the time , and even if its a loss think of it as spending 10000 in 3-4 months on weekends...its spent...you cannot do anything about it...but if this goes to 5-10-15 Rs...upside potential is endless, & loss..well you have already spent it on weekends so nothing more to lose...Choice is yours.


Its a crude compilation & its possible that i could have left some information...so if there is anything else i should added, feel free to mention it with source in comments. You can share this info to all prospective investors so many more can take benefit of this mega multibagger in making,




Update 31/12/2016 -

The Portugal Case is listed on Delhi High court website -
In order dated 1 March 2016 - A letter of request has been received from the Government of Portugal for legal assistance in the matter of taking evidence of one Mr. Dinesh Gupta (perhaps a CA with firm at the address in order), who is the claimant in a cause pending before the Portuguese Court.

Latest order is Order dated 1 Jun 2016 - ... which transmitted recording of all evidence to the Ministry of Law & Justice, Department of Judicial Affairs.

Other Previous orders are also listed

Update 4th Jan 2017
Portuguese bank Efisa had been sold in 2015 & Portuguese news site claims that according to sale documents, (use translate to English as language is Portuguese) the portuguese govt must pay to visesh & others for their lawsuit , if we take estimate 20% of bank's total liability 80 Million Euros to accrue to visesh(as article says majority of liability would go towards other case filed by a different client of bank) , which comes to 112 crores (20%*80Mill euro *71INR per Euro) !!! Or 30% ROCE , a 0.33 EPS compared to .01 EPS now...Lots of good news is expected to come in the distant future...Hold on...

UPDATE 18 Jan 2016- Lots of updates now-
1. Uvapoint website has been updated by management, they have now added in their products , sale of fox mobile which is wholly indian made...also they are enabling their Ewallets to transfer money to banks, build portal for migrants worker & ticket portal for rail,air,bus travel... Another revenue generation opportunity.
2. Visesh Infotecnics has received letter from Central Depository Services (India) Limited confirming that they would provide ASA/KSA services to our company for e-KYC services using Aadhar Authentication. Further this is first step in our process to get registered as AUA/KUA with UIDAI and thereafter offer host of Aadhar based services namely: A. e-KYC Services B. Mobile Update services for Aadhar residents C. Aadhar based payment services for merchants and P2P payment....Another Great opportunity .

3. Third & an important puece of puzzle, Two new investors bought in bulk deals visesh as shown in shareholding pattern as on 31 Dec 16 shared few days back namely Mediamagic telecommunication pvt ltd (which is in similar business segment of app & telecom services having same director as Omkam group of companies ,which holds chunk of visesh shares & peeyush holds shares and is director in Omkam -Mukesh Sharma) & Neelabh spinning mills, which has its regd office in same building as visesh & Omkam...so definitely promoters or persons to its close are in the know that they are in for something big & grabbing visesh.


Disclaimer -
This is not an advisory service to buy or sell nor an offer inducing to buy or sell. The contents of “this research report” are only for educational purposes. Its only meant to describe company's features, advantages, No liability is accepted for any content in “this research report”. The author is neither a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time.The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions.