D-Link India Ltd: Building networks
(BSE Code: 533146) (CMP: Rs.75.65) (FV: Rs.2)
D-Link (India) Ltd, a subsidiary of D-Link Holding Mauritius Inc. (100% subsidiary of D-Link Corporation), markets and distributes networking products in India and the SAARC countries. It offers advanced networking, voice, broadband, digital and data communications solutions. Its products extend across all areas of network infrastructure including switching, security, wireless, IP surveillance, storage and structured cabling. Its product/solutions portfolio consists of end-to-end networking products which include 3G, broadband, IP surveillance, network security, network storage, switching, routing and wireless LAN.
With a small equity of Rs.7.1 crore, D-Link is expected to generate an income of Rs.780 crore in FY18 as against its current market cap of Rs.269 crore. Initiatives taken by the Government of India like IT Networking, Digital India and Smart Cities coupled with the telecom revolution brought about by Reliance’s Jio augurs well for the company. Being a regular dividend-paying and debt-free company with positive cash flows backed by a strong technical parent, DLink is available at an attractive valuation. The stock has the potential to cross Rs.100+ within a year.