CMP : 28


Vakrangee Software Limited develops computer software for corporations and governments uses. Some of the software developed are HRMS (human resource management system) and E-Administrator.

Vakrangee Software Limited is a decent bet in small cap software segment. Their recent quarter revenues and PAT have grown 250% YoY. NPM has been maintained at sames levels of 7%. The company had NPM at 20% in FY06, FY07 and FY08 before it took a hit in FY09 to 1.5% and has recovered and maintained at 7% in the last 2 years. IT sector is recovering and NPM can only get better. Its currently trading at a P/E little less than 14 and is priced fairly and is at good levels to buy considering the revenue and PAT growth trend.