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IOL Netcom Ltd Stock Analysis

Small Cap
Evaluated by 46 users | BSE: 512185 | NSE: IOLN |
IT - Networking
IOL Netcom, incorporated in 1985 offers services in areas of broadband, IPTV, video on demand, music on demand, eLearning, eCommerce, etc. It was the first company to launch the IPTV and VOD in India. IOL Netcom is first commercial Metro Ethernet Fibre Network Infrastructure Company in India....

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'02Mar'03Mar'04Mar'05Mar'06Mar'07Mar'08Mar'09Jun'10Jun'11
Return on Capital Employed -11.48%-7.58%-11.42%5.68%-6.16%-6.09%-19.22%-9.55%-16.76%-11.38%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1.21.22.11.48.914.72137.170.9
Y-o-Y Gr. Rt.--1.7%78%-32.4%523.2%66.1%42.5%77.2%-81%-87.6%
Adjusted EPS (Rs.) -5.73-2.36-2.730.11-1.06-2.01-9.28-5.12-5.91-4.26
Y-o-Y Gr. Rt.-NANANA-1063.6%NANANANANA
Book Value per Share (Rs.) 9.057.775.85.976.5245.8334.2130.6318.9525.54
Adjusted Net Profit -3.9-2.7-3.10.1-1.5-4.7-24.7-14-17.4-12.5
Net Op. Cash Flow (Rs. Cr.) 000-3.8-1.7-21.8-29.9-15.79.4-5.1
Debt to Cash Flow from Ops 000-3.86-9.12-0.32-0.99-2.341.94-5.5
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
IOL Netcom Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -3.5%-37.1%-65.4%-87.6%
Adjusted EPS NANANANA
Book Value per Share 12.231.4-9.334.8
Share Price - - - -
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'02Mar'03Mar'04Mar'05Mar'06Mar'07Mar'08Mar'09Jun'10Jun'11
Return on Equity (%) -93.25-34.79-39.281.79-18.48-7.83-23.08-13.67-22.94-15.41
Operating Profit Margin (%) -235.28-138.42-40.643.21-6.98-23.29-85.14-11.25-75.46-182.88
Net Profit Margin (%) -325.52-228.08-148.368.59-16.65-31.97-118.08-37.76-246.94-1445.56
Debt to Equity 2.711.251.82.141.740.070.320.440.330.37
Working Capital Days 2,4511,565344437793907556722,50316,266
Cash Conversion Cycle -481-407-389-450-46211451509434,880
Entity Percentage Holding
Promoters 2.29%
Institutions 2.38%
Non-Institutions 95.33%
Pledged *42.8242.8242.8242.820.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
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Data is not available for this company.

Data is not available for this company

IOL Netcom, incorporated in 1985 offers services in areas of broadband, IPTV, video on demand, music on demand, eLearning, eCommerce, etc. It was the first company to launch the IPTV and VOD in India.

IOL Netcom is first commercial Metro Ethernet Fibre Network Infrastructure Company in India. The company has a fully

IOL Netcom, incorporated in 1985 offers services in areas of broadband, IPTV, video on demand, music on demand, eLearning, eCommerce, etc. It was the first company to launch the IPTV and VOD in India.

IOL Netcom is first commercial Metro Ethernet Fibre Network Infrastructure Company in India. The company has a fully integrated backbone network due to which it offers its customers network access ranging 1-1000Mbps. The company is focused on providing value added broadband services like IPTV / VOD.

IOL Netcom is the first company to launch IPTV/Triple Play MPEG 4 in Asia. It is the only company in India to have access to fibre in metros. The company has entered into a Content Delivery Network (CDN) agreement with BSNL/MTNL allowing it to have an access to over 2 million homes. It is the only Indian company to have last mile access to over 1 million homes via its own/lease fibre network as well as the BSNL/MTNL ADSL broadband networks, growing at the rate of approx 50% annually.

The company has received a Letter of Intent (LOI) f rom Power Grid Corporation (PGICL) to provide last mile connectivity to over 6000 members of the National Stock Exchange of India (NSE) in the cities of Mumbai, Delhi, Kolkata, Chennai and Ahmedabad.

It has strategic partnership with various companies such as MTNL, MagnaQuest, HP, Cisco Systems, IBM, Amino, BT Kasenna, Verimatrix and Widevine.

The company has regional presence through Internet Data Center (IDC) and POPs in more than 15 cities of India. After launch of IPTV, the company has approximately 100,000 existing broadband subscribers in major metros.

lOL’s Products and Services

Broadband Internet- The company is currently providing broadband Internet services to residential and corporate users through its optical fibre network.

Internet Protocol Television (IPTV)- Internet Protocol Television or IPTV is the delivery of digital television services via broadband to registered end user subscribers. The IPTV subscriber can therefore have access to a wide range of video, voice and data services wit h elaborate mechanisms for interactivity both for broadcast channels and also on demand.

Video on Demand (VOD) - The main essence of VOD is to enable subscribers to watch movies, favourite TV programmes/special events (loaded on IOL's server) at their convenience. The content includes 'Hollywood', 'Bollywood' and other regional movies. Under this, the company has tied-up for over 1000 hours of education and eLearning content based on Department of Science and Technology and CBSE guidelines. It has also has distribution tie-ups with major Hollywood studios like Warner Bros, Universal, 20th Century Fox, MGM etc.

Voice over Internet Protocol (VOIP)- Under this, voice conversation is routed through Internet or any other IP-based network.

Video Conferencing- The company offers video conferencing through a set of interactive telecommunication technologies, which allow two or more locations to interact via two-way video and audio transmissions simultaneously.

Future plans

With the strong growth in broadband services all over the world and especially in India, IOL Netcom is taking steps to capitalise on this growth and is likely to do fairly well due to its early mover advantage in the segment.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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