These two companies may benefit from "Unique Identification scheme".

Due to overwhelming request from 747 readers in just 2 days, we have decided to post those two companies which will be the most beneficiaries of the UID project. Thanks to all those who has requested for these two companies thru e-mail. Also thanks to all the readers of MPS who has made this penny stock dedicated portal (MPS) one of the top penny stock portal in India.

#1. Glodyne Technoserve Limited subsidiary Smaarftech rolled out e-shakti project under NREGS (National Rural Employment generation Scheme). The e- Shakti project seeks to bring in contactless smart cards to workers registered with NREGS for their wage disbursement, identification, and a host of other service features. This company also has an experience of Database management and its security. Taking into account, its experience in implementing such schemes, the company may benefit from the proposed UID scheme.

#2. Bartronics India Ltd operates in niche segment with not many competitors. It's already a key player in the smart cards segment and has been providing solutions related to Automatic Identification and data capture technologies. It has achieved expertise in smart cards, secure cards, contactless cards, biometric cards. It is just about the perfect player for the UID scheme and may turn out to be the biggest beneficiary of this project.

More Details....

The total revenues for FY2008-09 for Bartronics stood at 582 Cr and for Glodyne Technoserve at around 400 Cr. As I mentioned earlier, that costing of cards alone will come out in the range of 10000-12000 Cr, whereas software development, maintenance of database, may cost another 4000-5000 Cr. The numbers outline a very optimistic picture for both the companies, because this project alone may form a substantial part of total revenues of both the companies for at least 3-4 years to come, especially for Batronics. The stream of revenues for software companies will be distributed over many years, as the work of up gradation and maintenance of database will be more like an ongoing process.

As I said earlier, that huge database will have to be maintained and also software will have to be developed, so Indian IT industry may get the much needed fillip. But, the point is that with so many companies around, which all IT companies will benefit the most? I feel that this project being a major one, companies such as Infosys, TCS, and Wipro may get a larger chunk of the IT related work, as they are the revered and the preferred ones.

So, finally it seems, govt. has embarked upon a path of growth and has embraced technology as a preferred partner for all its pursuits. Be it Restructured accelerated power development and reforms programme (R-APDRP) or now Unique ID programme.

- MPS Team

On June 29th : The release of "Business Insights" - A Wealth Creating Penny Stock for the month of June’09 with potential return of 20-50 times in 3-5 years holdings!!!

Note: The stocks discussed at MPS thru blog postings are neither a part of “Business Insights” issue nor a “Penny Stocks” which we reco/publish for paid subscribers. These are just stock specific views by MPS team; one MUST do the due diligence before doing any investment based on our reco.