D-Link<\/a> India, seller of networking items such as routers, switches<\/a> and wireless products, seems to be ideally placed to take advantage of the boom in the networking and internet space. With more people using internet connections and smartphones, the demand for networking products is on the rise.
\n
“Going ahead, India is expected to witness a data<\/a> boom similar to the voice boom in 2008,” says Karan Mittal of ICICI Direct. The networking products industry is growing at 58 per cent, and experts believe that the trend is likely to continue for the next five years.
\n
\nAccording to an industry report, number of internet connections is expected to reach 46.3 crore in 2018 from 17.4 crore at present. After the new government assumed power, D-Link's management has expressed confidence that the networking industry will continue to grow at a robust pace on the back of increasing broadband penetration, higher enterprise spending and further rollout of 3G and 4G.
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\nThe government aims to set up a National Optic Fibre network at the village level and establish Wi-Fi in public zones. With an over 35 per cent market share, which is rising, and a strong channel network pan-India, D-Link India is poised to benefit from this.
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The strong growth<\/a> in the network industry is reflected in D-Link India’s financials: its sales have grown 55 per cent CAGR in the last three years to Rs 486 crore, and its net profit at 59 per cent CAGR to Rs 13.5 crore. The margins are low as D-Link is primarily a trading company: it imports products from its Taiwan-based parent D-Link and sells them in India. For such companies, investors should look at the return ratios. Its return on equity has improved from 5 per cent in FY11 to 14.5 per cent in FY14.
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\nIn January this year, D-Link India acquired an embedded software company TeamF1, which provides networking and security software for embedded devices. This could lead to higher profit margins for the company in coming years. “D-Link has enormous hardware strengths and coupled with the software capabilities of TeamF1, the India operations will enter another level -- from that of a marketing company to a product plus technology company,” said a company spokesperson.
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\nThe appreciation of the rupee is another positive for the company as it primarily imports products from its parent. In the past, it had witnessed a net profit margin of as high as 5 per cent compared with 2.8 per cent this year. Its stock has got re-rated and appreciated significantly over the past few months due to the new government’s focus on extensive use of technology for improving connectivity at the pan-India level. However, given the huge growth potential and a possible rise in the margins , there's still a strong upside potential from here.
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\nAt the current market price of Rs 96, the company is trading at 15 times its FY15 earnings and 10 times its FY16 earnings.
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友讯科技准备利用数据在印度繁荣

网络产品行业正以58%的速度增长,专家认为,这一趋势可能会继续在接下来的五年。

Jwalit Vyas以及,
等局

更新2014年8月21日08:18点坚持

友讯科技印度,卖家的网络路由器等项目,开关和无线产品,似乎是利用理想地方繁荣的网络和网络空间。越来越多的人使用互联网和智能手机,网络产品的需求正在上升。

“继续,印度预计将见证数据繁荣的声音热潮在2008年,“卡兰米塔尔ICICI直接说。网络产品行业正以58%的速度增长,专家认为,这一趋势可能会继续在接下来的五年。

根据一个行业报告,网络连接的数量预计将达到46.3卢比的从2018年的17.4卢比。新政府掌权后,友讯科技的管理表示相信,网络行业将继续以强劲的势头增长,增加宽带普及率,提高企业支出,进一步推出3 g和4 g。

政府的目标是建立一个全国性的光纤网络的村级公共区域并建立wi - fi。有超过35%的市场份额,这是上升,和一个强大的渠道网络pan-India、友讯科技印度有望从中受益。

强烈的增长在网络行业反映在印度金融类股友讯科技:销售额增长了55% CAGR 486卢比在过去三年里,和它的净利润在59% CAGR 13.5卢比。友讯科技的利润率较低主要是贸易公司:进口产品从台湾母公司友讯科技和销售在印度。对于这样的公司,投资者应该看看返回的比率。其股本回报率在FY14已经从11财年的5%提高到14.5%。

今年1月,印度友讯科技收购TeamF1嵌入式软件公司,提供网络和嵌入式设备的安全软件。这可能会导致更高的利润为公司在未来几年。“友讯科技拥有强大的硬件优势,再加上软件功能TeamF1,印度业务将进入另一个层面——从一个营销公司产品+技术公司,”公司的一位发言人说。

卢比的升值是该公司的另一个积极的,因为它主要从母公司进口产品。在过去,它见证了高达5%的净利润率为2.8%。其股票有调,大幅升值过去几个月由于新政府的专注于技术的广泛使用为提高连接性pan-India级别。然而,考虑到巨大的增长潜力和可能增加利润,从这里仍然有强大的潜力。

在96卢比的当前市场价格,公司是其FY15收益的15倍和10倍FY16收益。