A Play On Internet Boom

Scripscan:GEODESIC LTD
Cmp:42
Traded in:Nse-bse

Story:Geodesic operates under the ‘Mundu' brand and is widely recognized for its pioneering interoperable instant messaging that successfully combines Google Talk, ICQ, MSN and Yahoo across the Internet, wireless devices and platforms. Geodesic primarily services companies, by making and maintaining websites, portals and publishers by helping them increase the online traffic on their websites and create solutions that increase productivity and profitability, and lastly, retail customers by way of its Mundu suite of products.The company generates its revenue in the form of license/subscription fee, customization charges, share in ad-revenue and charges for support and maintenance.Internet is the fastest growing media advertising channel today and most large organizations have started allocating to the tune of 15-20 per cent of the total ad-budgets to online advertising. Here, Geodesic has developed a context based advertising product called ‘ADePT', which helps companies in user acquisition and thus gives a boost to the ad-revenue generated on their website. The company also offers a customer relationship management (CRM) software called Spyder that enables companies to conduct targeted marketing and keep a check on service misalignments.Given the potential in various segments that the company operates in, the high growth period for Geodesic may have just begun. Geodesic's revenue and earnings are set to grow at a CAGR of 49 per cent and 31 per cent over FY08-10. At Rs 42, it trades at a PE of less than 2 times its estimated FY09 earnings. Geodesic's valuations are very attractive and you can expect the scrip to double in an years time.