Geometric

CMP: 107

Geometric Limited supplies software and services to the mechanical design and manufacturing markets. The Group specializes in surface modeling, data translators, ACIS and Parasolid geometry kernels, PDM, manufacturing and machining. Geometric provides both its services and products to a variety of customers in Japan, Europe and the United States.

Geometric is a decent bet in small-cap IT space. Its currently trading at a P/E of 36, overvalued as Rakesh Jhunjhunwala holds stake in it. It runs at Zero debt with 35 Crores cash in hand which makes it a safe bet. Revenues have risen from 172 Crores to 270 Crores in the last 5 years. Profits have risen from 21 Crores to 41 Crores in the last 5 years. Profit margins have risen from 12% to 15% over the last 5 years. Buy and hold for long term gains.