CMP: 78

Blue Star Infotech Ltd. provides information technology consulting and software services. The Company is structured under 3 lines of business: Global Research & Development to provide product realization services, Business Applications Practice to focus on application management services, and Consulting Services Practice to offer consulting services.

Blue Star Infotech is a 81 Crore penny cap stock trading at a P/E of 11 with dividend yields of well over 2% in the last 12 months. Its a Zero debt company with 7 Crores cash in hand. Revenues have been stable around 100 Crores in the last 5 years. Profits have dipped from 13 Crores to 5 Crores in the last 5 years on consistent drop in profit margins. Last 3 quarters have seen reversal and surge in profits. Current market valuations are attractive and this is a good buy in penny cap space at current levels.