Multibagger - OnMobile Global Ltd.

>> Saturday, March 7, 2009

Stock - OnMobile Global Ltd.
CMP: Rs 230.05
52 Week H/L: 744.70 - 185.20
Market Cap: 1320.49
Target price: Rs 425 ( 9 - 10 months)

Summary: -
OnMobile Global Limited is a provider of mobile value added services and products (MVAS) in India. The Company has a range of applications that are delivered by its customers, who are telecom operators and media companies, to their subscribers. The products of the Company are Network based in-call solutions like caller ringback tones, dynamic voicemail and missed call alert service, Voice-based multi-modal portal which allows subscribers to access informational and entertainment content such as music, sports updates, news, stock and commodity price updates, in multiple languages using speech-based navigation; on-device client software applications; interactive media solutions, such as tele-voting, interactive programming, mobile auditioning and auctions; mobile commerce solutions like ticketing (movie and railway ticketing), utility payments and mobile marketing services, and business support solutions like phone backup and pre-paid and post-paid bill payments.

Key Factors/ Drivers: -
OnMobile Global is India’s largest VAS (value-added services) operator (35% share) in a rapidly growing market FY08-11 (estimated) CAGR at 51%.

The estimated 36% EPS (earnings per share) CAGR over FY08-11 (estimated), was due to the company’s increasing international presence.

The domestic VAS has graduated from being a glorified sub-set of p-to-p SMS to a well-demarcated segment. “The current contribution of the company at 3.4% of wire-less revenues is likely to increase to 6% by FY12E.

Key Positive: -
Mobile sector will see a boom as it is keeping on adding numbers of subscribers on a daily basis.
More over every one need a cell phone.
Strong growth potential.

Key Negative: -
Markets looking volatile so this is the biggest threat to the stock.
Technicals are not in favor.