Vedavaag Systems Ltd -
Multibagger in the making
Strong BUY for TP145
Tiny Mkt cap of 125cr
*Co has posted Stupendous results for Q1FY22*
▫️Revenue at 22.1cr vs 11.75cr (+88% YoY)
▫️EBITDA at 4.17cr vs 2.45cr (+70% YoY)
▫️PAT at 2.24cr vs 1.33cr (+69% YoY)
*Some recent developments that could propel the stock into next BIG growth phase*
▪️Co has ventured into Artificial Intelligence (AI) & Machine Learning (ML) segment by launching Driver Alert Management System.
▪️AI & ML are new age technologies and Vedavaag is introducing cloud based product Driver Alert Management System known as V-DAMS
▪️The co is keen to render the product & services that can enhance safety & security of people & fleet in transport sector.
▪️The co is already working as a supply & Installation partner for cloud enabled IoT based devices installation for public transport vehicles in Andhra Pradesh
▪️V-DAMS has wide usage in public transport vehicles such as buses, autos, goods carriers, lorries, tempos & self driven passenger cars
▪️Vedavaag is also in the process of developing Artificial Intelligence & cloud based IoT products for other industry segments.
*What's more?*
▫️Co is a Niche player of e-governance solutions and citizen services infrastructure management.
▫️Co has been working PSU’s in e-governance applications development and services delivery
▫️Co has delivered Ticketing solutions for State Road Transport sector.
▫️Co has setup over 2500 citizen services points in several states to deliver various various G2C, B2C and B2B services.
▫️VEDAVAAG is a National Level Business Correspondent for SBI servicing over 25 lakh Account holders through 2500 CSPs
▫️Authorised by the IRDAI to act as a corporate agent to solicit & procure insurance business through its network in India.
▫️One of the leading UID Aadhar enrolment agent and to date facilitated issue of over 1.7Cr Aadhar cards.
*Some more interesting developments*
▪️The Company plans to create another 500 plus CSPs in the next 12 months.
▪️Vedavaag is developing niche AI & ML products addressing the needs of critical sectors such as healthcare, education, safety, and security.
🎯 *AI & ML are new age technologies that will provide a big impetus for further growth.*
*Considering all the above factors, we feel Vedavaag has the potential to become a multibagger.*
We advise a strong BUY with TP 145