Stock Review: OMNITECH INFO

Mumbai-headquartered Omnitech offers IT systems integration, and remote infrastructure management solutions to domestic and international clients. Its strategy to focus on small and medium clients helped in retaining growth momentum during the subprime slowdown. It has clocked double-digit growth in each of the last five years due to sustained demand from customers. The recent acquisition of Netherlandsbased Avensus will strengthen Omnitech's foothold in the European market for IT infrastructure management and security solutions. The company is likely to retain its tempo in the current fiscal with an expected 40% growth in revenues and 46% growth in net profit. Considering this, its stock trades at a FY12 forward P/E of 2.6, which looks attractive given its future prospects.