Enterprises Ltd, promoted by B V R Mohan Reddy was incorporated as Infotech Enterprises Pvt Ltd in August 1991 for creating facilities for software development and its export. Commercial operations began in September 1992. Company went public in March 1997. Company's first project on creation of facilities for Computer Aided Design and Drafting and Geographical Information Systems (GIS) was successfully completed in September 1992, with aid from IDBI under its Venture Capital Scheme.

Main areas of the company are Computer Aided Design (CAD) and GIS. It provides technical software services and has diversified into Business Software Services and Net Services (Internet and Intranet-related services). It also has Engineering Services and Geo-Engineering divisions. Company has strategic alliances and business partners in USA, Europe, Australia and Japan..

Products & services:

Infotech Enterprises is a global software services company specializing in geospatial, engineering design and IT solutions. Company provides its services to improve companies' speed to market, optimize resources and reduce costs, thereby creating measurable business impact.

Key areas of its services are as follows-

Geographic information system:

Infotech has carved a niche for itself in the GIS market space and is recognized as a leading global GIS service provider. Infotech possesses strong domain knowledge and complete solution capability and is focused on the creation of enhanced value for its customers. Infotech has over 1000 GIS professionals working round-the-clock providing over two million person hours of experience in GIS services. Infotech is one of the largest offshore providers of digital Photogrammetry services. Based on extensive technical resources, infrastructure and global delivery capability, it manage, execute and deliver large projects to customers worldwide, providing them the benefits of high-quality, cost-effectiveness and reliable delivery. It offers complete end-to-end GIS solutions to help organizations scope, design, build and manage their GIS. Infotech provides the Managed Application Service to all clients who have had a bespoke application built for them. The MAS is an all-encompassing agreement that covers every aspect of support and maintenance specifically within the GIS field. Infotech provides a wide range of training courses in the latest GIS software. Courses are interesting and relevant to provide users with the confidence and skills to make desktop mapping work for the organization.

Engineering Design:

Infotech offers integrated engineering design solutions in focused domain areas. Infotech has developed robust cross-border collaborative processes that enable a seamless integration with customer design team. Company is able to undertake complex engineering tasks and effectively deliver high quality results that are critical to its customers.

IT services:

Infotech provides services in the areas of ERP, EAI, Business Intelligence, e-biz, Web enabling of business processes as well as maintenance/enhancement of legacy systems, Corporate Portals and Knowledge Management. It is enhancing the customers Business Processes using technology as an enabler to create competitive advantage. Its platform expertise includes IBM, Microsoft, Plum Tree, Seebeyond, SAP, Oracle, SUN and BEA, Documentum.

Electronic Design services:

Infotech has executed projects for global customers enabling them to reduce time to market, optimize resources and reduce costs. Its EDS team is well experienced in design of Analog, Digital and Real time embedded systems and is capable of developing products using a variety of 8, 16 and 32 bit Micro-controllers and DSPs from Analog Devices, Motorola, Microchip, Intel, Atmel, NEC, Hitachi, Texas Instruments etc. It offer services in the following areas: Product Development, Re-Engineering, Firmware Development, Software Development, PCB Design, Verification and Validation.

Offshore outsourcing:

Offshore outsourcing is emerging as a flexible and powerful approach that companies can use to achieve a wide range of tactical and strategic aims. Many organizations are outsourcing their software development, testing, support, technical design, application and data management, thereby enabling them to focus more on understanding customer needs, achieve better product positioning and enhance customer satisfaction.

Recent Developments:

Infotech Enterprises announced that it has signed a Memorandum of Understanding
(MoU) with Eurocopter a Germany-based helicopter manufacturing Company, for the attack helicopter program of the ministry of defence, Government of India.

Infotech Enterprises has announced that its subsidiary, Infotech Enterprises Benelux BV, has signed an agreement with the Dutch telecommunications engineering and technology company Volker Wessels Telecom to provide a new service offering in Telecommunications engineering to telecommunications industry world wide. The company specializes in engineering design services (EDS) like mechanical and electronic design, technical publications and engineering software development.

Infotech Enterprises, a global technology solutions provider with headquarters in Hydrabad, India announced that it has inked a 5 year contract with inCONTROL Tech
(iTEC) of Malaysia to implement an Enterprise GIS information System for Tenaga National Berhad (TNB) which is the largest Electric Utility in Malaysia. The implementation is a part of TNB's long term GIS roll out plan for all their circles nationwide. Under this project, Infotech and iTEC would be offering a service oriented architecture (SOA) based solution for enterprise GIS information management to TNB. This implementation would help integrate and streamline business processes across various functions within TNB.

Valuation:

At current market price, Stock trades at attractive valuation of 8.67 multiple of its FY2010 Estimated earnings par share. We recommend investors to buy "Infotech enterprises" with medium to long-term investment horizon.