Kellton Tech - story unfolding

Company Overview - 

Kellton Tech is a global IT company with a portfolio comprising an exhaustive list of IT services in the web, mobile, security, ERP and cloud Space. Kellton Tech boasts a global presence spanning three continents, three countries and five cities.  Founded in 1993, we are a two-decade-young organization. Created with a vision to offer infinite possibilities with technology they are committed to providing end-to-end IT solutions, strategic technology consulting and product development services. 

Interesting points to buy -

1. Company provides end  to end solution in the growing IT sector like ERP, cloud and mobile sector. We believe this choice of growing sector will help company to generate increasing revenue in coming quarters.

2. Company has very widely known clients like PVR , makemytrip DailyNews Newyork, Educomp, Nokia, Kaplan, Nielsen. Company provides quality solutions to the world's widely known companies.

3. Kellton Tech Selected Among the 'Top 20 Travel & Hospitality Solution Provider in June 2014.

4. Company is providing consistent performance, 

Total Income From Operations	41.81	40.22	26.42	25.22	12.63
Total expense	37.25	37.74	24.5	23.38	11.18
Net Profit/(Loss) For the Period	2.52	1.49	1.22	1.13	0.85
Basic EPS	0.71	0.42	0.34	0.32	0.24

5.Promoters increased their shareholding by subscribing to the warrants at Rs 15 per share and they haven't pledge a single share till date.

Our View- 

We expect company to post EPS into similar lines for rest of the Financial year which makes it 2.9 for the entire year. At CMP of 21.5 company is trading at the PE multiple of 7-8. Further, company has taken lot of acquisition on the book pursuing aggressive expansion strategy. (FYI - It acquired Kellton tech from USA and changed their own name to Kellton tech to focus better on their US market.) Further, promoters are steadily increased their stake in the company which shows their commitment to the company. We consider company is currently in the infant stage and has lot of potential to grow into multifold return. Hence we recommend this stock for long term investment at CMP 21.5.