KELLTONTEC - Buy Trade

Multibagger Stock Pick
KELLTON TECH - Buy
CMP 78. Target Rs140

Kellton Tech Solutions Ltd. is an Indian IT, outsourcing and software development company headquartered in Hyderabad with offices in US and Europe
with market cap of around 727cr, trading on a PE of just 10.9, ROCE at 20.7%, Book Value of 46.7, Face value of 5 and has a promoters stake of 55.85% with FII 1.34%.

And why should I buy it ?
1) One of the leading company for digital transformation and integration.
2) Digital commerce & Marketing.
3) Outsource product development.
4) Delever SAP solutions end to end and is a certified SAP gold partner.
5) Internet of things platforms and solutions.
6) Strong presence in US, EUROPE. INDIA, and Asia Pacific.
7) The company appeard four time in the Deloitt technology fast 50 India list.
8) The company is a part of Forbes Asia under a billion top 200 company list.
9) Won the "Integration partner of the year" award in London.
10) They have a very big clienal list from startups to fortune 500 companies, to name few Cococola, Walmart, MAX life, UPS, Novartis, Univision, snapdeal, hatway, Flipkart, KFC, Paytm, Pizza Hut, Religare, Dupont, Makemytrip, policy bazaar, and many more.
11) Kelton recently announced that it has been chosen by ZEE5, India’s Entertainment Super-app, to build a next-generation, cloud-native content management system (CMS) that delivers relevant, real-time content experiences across all constituents of business.
12) Received a contractor 55ML from Food Corporation of India Ltd for implementation and maintenance of HR and management system.
13) Fy19 and 20 were very challenging years for IT companies and despite that the company registered a top line of 770cr, EBITDA 116cr, maintained margins of 15%, and PAT of 71cr. with an EPS of Rs. 7.55
14) Very strong return ratios, last three yrs. ROE track records is 24 to 25%
15) The average multiples for IT sector is around 50 to 60 PE levels, so now we can see how valuation are so attractive for Kellton.

Last and final point which I would like to highlight.

16) They have entered into a new streem which is booming right now, and that's *cryptocurrency trading.*
They have started developing platforms where crypto trading can be performed and is the hot theme running now a days, will develop NFT technologies and on that the trading platforms will be built. The contract which they received is very significant. Big giants are also about to enter in the same field and Kelllton will definitely have an upper edge.

Buy it to Double Your Money.
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