EQUITY VALUATION

PMSA PRESENTATION
GROUP MEMBERS

CHETAN HARAN- 11

JEKIN BHANUSHALI - 23

MALATHI MUGULLU - 26

MANCHAL JAIN - 28

NIKESH - 34

ZOHAIB - 53
Disclaimer: Views expressed in the
report are general and should not be
taken personally. Please consult your
investment advisor before investing
 POLARIS
• Polaris Software Lab Limited is one of India's leading institutions
contributing to the knowledge economy of the global financial services
marketplace.

• Polaris was recognized by Smithsonian Institute in 1993 for creating the

first ever banking solution on distributed architecture.

• Polaris has established its solutions and services footprint globally

contributing to the realization of the business vision of some of the world's
leading giants in the money vertical.

• Polaris was one of the first vendors that Citigroup chose to partner with,
through this Indian quest.
 POLARIS
• Polaris is proudly associated with some of the world's most prestigious
financial services institutions like Citigroup, UBS, Lloyds TSB, SEB,
Shinsei Bank, MHB, & Deutsche Leasing, to name a few.

• A unique blend of techno-bankers, banking & insurance practitioners,

technology experts & quality process gurus help Polaris create enduring
value in any relationship.

• Polaris is organized into 7 Business Solution Centers (BSCs). Each BSC

houses expertise in one of the domain areas. For example Hyderabad center
houses the Investment banking and wealth management expertise.

• Polaris built expertise on Investment Banking, Retail Banking, Credit

Cards, Corporate Banking, Insurance etc.
• Expertise that helps our shareholders derive more returns from
their investments and
• Expertise that helps to build more experts in the society.
• Expertise that helps our employees satisfy their desire to add
value and make a difference.
• Expertise that helps our customers to out serve their customers
• Expertise that helps our customers reach their goals better &
faster.
Expertise'
Polaris philosophy:- 'The Economics of
 POLARIS SOFTWARE
LTD
   
No of shares of Rs 5 each 98676197

Market price as on 10th July 88.25  

2009  
EPS 13.24
Sales 13779454000
Sales per Share 139.6431401  
BV 7726719000   
BV per Share 78.30377776    
PE 6.6654
Price to BV 1.127020976
Sales to Price 0.631968089
 TCS Wipro Infosys
 
No of shares TCS
of Rs 5 each
120690000 279203632 368757435
  price
Market
as on 10th
July 2009   790 385 1717
EPS 53.63 26.72 104.43
Sales
278128800000 256171000000 216930000000
Sales per
Share 2304.489187 917.5059728 588.2728846
BV
134462500000 125150000000 178090000000
BV per Share
1114.114674 448.2391547 482.9461947
PE
14.73056125 14.40868263 16.44163555
Price to BV
0.709083202 0.858916487 3.555261474
Sales to
Price 0.342809159 0.419615797 2.918713483
Infosys, Wipro and TCS VS Polaris software
AVG of Infosys, Polaris Software
Wipro, TCS

PE

15.1936 6.6654

price to BV 2.753086846 1.127020976

Sales to Price 3.452599 0.631968029

 Conclusion
• Polaris has a great
upside from here.
• It is underpriced.
• One can expect the price
of stock to go as high as
140, even if we assume
a modest increase in PE
from 6.66 to 10 which is
still less as compared to
average of 15.
 IDFC
• IDFC was incorporated on Jan 30,1997 in
Chennai.

• It was set up on the recommendation of the

‘Expert Group on Commercialization of
Infrastructure projects’.

• It is a new approach and identified the need for

a specialized financial intermediary for
infrastructure.

• IDFC has approved financial assistance to 332

projects aggregating over Rs. 2,20,400 million.
 IDFC
• IDFC has broadened its initial focus on
roads, power, ports and telecommunications.

• It has build a framework of energy,

integrated transport, Information
Technology, urban infrastructure, Health
care under the chairmanship of Dr. Rakesh
Mohan.

• In its sectors of engagement

it has been awarded as lead arranger
mandates and key advisory
assignments.
 IDFC
98676197
No of shares of RS 10 each

88.25  
Market price as on 10th july 2009
13.24
EPS
13779454000
Sales
139.6431401  
BV
BV per share 7726719000   
78.30377776    
Sales per share
6.6654
PE
1.127020976
Price to BV
0.631968089
Sales to Price
  
IDBI IFCI
No of shares of Rs
10 each 724763834 762410000

Market price as on
10th July 2009   87.3 39.8
EPS 10.58 4.61
Sales
133468500000 14322200000
Sales per Share
74443000000 26749200000
BV
102.7134585 35.08505922
BV per Share
184.1544704 18.78543041
PE
8.251417769 8.63340564
Price to BV
0.8499 1.134386
Sales to Price
0.474058543 2.11866
 IDBI, IFCI vs IDFC
Avg of IFCI and IDBI IDFC

PE 8.442411705 21.92906574

Price to BV 0.9922 2.658343892

Sales to Price 1.29636 4.51429193

 Conclusion
• It is a overpriced stock

• We would recommend
sale on IDFC.

• It is overpriced on every
aspect that is PE, BV to
Price and Sales to Price