Dion Global Financial Solutions

                                   

                                    

Hello, Long term Investors,

Dion Global is a Global financial technology provider. They provide solutions to meet specific needs of the financial markets. After global Financial crisis of 2007/2008 , Most of the too big to fail corporations who deal with financial markets became very serious about the risk financial markets carries . After the financial crisis , there was a great need of the solution provider who can help them to cater transparent and logical solutions .

Dion global is promoted by the singh brothers of Ranbaxy and fortis health care. Singh brothers are considered the best management who always encouraged new innovations and new ideas. 53.3 % shares of Dion global is owned by promoters and very interestingly 15.97 % shares are owned by none other than Tech Mahindra. Tech Mahindra also have strategic partnership with the company. 34.4 % shares ( including 15.97 % of tech Mahindra ) are owned by different funds and FIIs .

Business Analysis :

 Dion Global has 550 clients in 88 countries supported by a worldwide staff of over 600, including more than 250 in product development. Dion Global started acquiring companies across every big markets in the world from 2010.

Ø Dion acquires equity stake in forming strategic partnership with Chase Cooper.

Ø Dion Global Solutions joins hands with BC Computers, Sri Lanka

Ø Dion Global shakes hands with EMIS to distribute research reports

Ø Recognia & Dion Global Solutions extend partnership into Asia Pacific

Ø Dion Global Solutions Acquires Controlling Stake in Swissrisk Financial Systems

Ø Tech Mhindra  Acquires Strategic stake in Dion Global Solutions

Ø Singapore brokers sign MOU with Dion Global Solutions

Ø Dion Global in partnership deal with Apex Softcell

Ø Dion Global develops interface with Cofunds

Now From 2013 , Dion Global started putting all the best Financial solution professionals together and they recruited best of the best IT people to run their different divisions . 

Ø Dion appoints Stephen Mitchell to its European Sales Team

Ø Dion appoints Achim Kleber to its European Sales Team

Ø Dion appoints Head of Partners and Alliances for Europe

Ø Dion appoints Managing Director for Australia & New Zealand

Its highly evident that management wants to built a giant financial solution provider from this tiny Dion Global .

Financials:

I don’t want to put too much emphasis on financials of the company , as Dion global is in the acquisition and building phase of its life cycle but there are some green shoots clearly visible in the financials of the company . Company declared profits in 2 of last 4 quarterly results . (DEC 2014 and MARCH 2014 http://www.moneycontrol.com/financials/dionglobal/results/consolidated-quarterly-results/RT07 ) . We can also see in above link that Dion global is a provider of all the datas to the most famous Indian financial market websites like www.moneycontrol.com .

Valuation and recommendations:

There are so many different scenarios where the company can turn out to be a multi bagger.

Singh brothers are famous in turning around the companies. Everyone knows how they turned around Ranbaxy from 200 crore company to 20000 crore company and sold it to Japanese. They made Religare  Enterprise 6000 crore company from 100 crore. They are in process to make fortis healthcare the biggest health care provider in Asia (At the moment 7000 crore company) .

Tech Mahindra is the Indian master in turning around as well. (E.g. Satyam computers)

I , personally , have this regret not to invest in companies like Bharti Tele , Hdfc , Concor , BEL , Tech Mahindra , Rallis in their early days but i am also proud to invest in Clariant , Wockhardt , Balmer Lawrie , L&T , Tcs  in their early stages of Business Cycles . What i learnt from all these years in stock market is , you cannot afford to miss the companies in their early struggling days . I am aware of the company’s financials which doesn’t look that great , but from this research its clearly visible that Dion Global have plenty fuel to become a giant in coming days . Thus, I recommend Buying Dion global at the Market price of 86 (23/02/2015) . It is not the company where anyone should put more than their 10 % of portfolio allocation but it’s definitely worth putting 5 to 10 % of portfolio allocation in Dion Global.

Disclosure : Holding 2600 shars at 74 Rs .