4 feb 2009 : Glodyne vs ADSL

Allied digital is going down even though it runs both NOCs as well as SOCs. Glodyne at present is only present in NOCs. It is on the lookout for a suitable acquisition in the area of SOCs. The demand and margins in running SOCs are very high. The fact that glodyne is able to generate high profts despite not having the full range of RIMS infrastructure speaks volumes for its management quality and efficiency.

At present RIMS forms a small component of its IMS business.As it increases the RIMS component and as it gets into running SOCs, it is but natural that its margins will increase.

Clients also prefer providers whose core competence lies in the IMS area , rather than diversified software companies getting into this business because of the high margins.

Glodyne is a company run by technocrats. It also has an application software division which in combination with its IMS capabilities, ncreases the business prospects.

So, finally, keeping all these aspects in mind, I again say that if I were to have onlly one company in my portfolio, in this difficult business environment, it would certainly be Glodyne.......

At present Glodyne seems to be consolidating around 175. Once it reenters the 20 % price band, it will take  just 5 sessions for it to double to 350. Trigger could be some +ve news of an order or some acquisition abroad in the SOC space.