ABM KNOWLEDGEWARE LTD (531161) - PURE e - GOVERNANCE STOCK

Today I am expressing my view on one  e - Governance related stock

ABM KNOWLEDGEWARE LTD (531161)

ABM KNOWLEDGEWARE LTD. (ABM), IT Software and Services Company  is one of the few IT companies in India with exclusive focus on e-Governance since 1998. ABM's e-Governance solutions are currently delivering 2.8 Crores Citizen Services per year . Very few companies in India have a comparable performance. 

ABM is currently focused on providing e-governance software and solutions to Indian customers. Company in this business for the past 18 years and are one of the very few private sector companies with such a long and proven track record. 

ABM is  front-runners in enabling e-governance in India with several successfully sustained projects. Several states have selected ABM for a state-wide rollout of crucial citizen facing projects as  competed with reputed MNCs and Indian IT firms.

ABM is the owners of several trademarks and re-usable software frameworks in the e-governance segment. Company's  key offerings are e-Municipality software, GRP-A Customized ERP for Govt, SAP Practice, Property Tax Capital Value Reforms and Automaton, Double Entry Accounting Reforms and Automation, Water Billing and Accounting Solutions and Tourism Portal. 

ABM is the category leaders in e Municipality and hence  hope to play vital role in Smart City initiative of Govt of India. 

COMPANY'S OFFERINGS

E - MUNICIPALITY

e-Municipality in Urban local bodies has been the core strength of ABM. ABM has been successful in providing vast services by covering 750+ Urban Local Bodies across several states in India. The e-municipality framework caters to crores of citizens by giving Government to Business (G2B) and Government to Citizen (G2C) Services. 

Product :

Assessment and Billing- Special Notice, Bill, Assessment Book, Bill Book – Indoor & Outdoor, UCP, Issue Advise, New Assessment, Re-assessment, Complaints  Collection- FIFO based as well as Selection based, Refund with/without Interest Administration- Data migration, CV Calculator, Workflows, Property to Flatwise Conversion, Integration with SAP, Payment Channels – PG, Cyber CFC, NEFT, Mobile 

Technology: 
Property tax information system works on Centralized Architecture and Java-Oracle Technologies. 

TOURISM PORTAL

Tourism is important economic activity for India and is growing rapidly. The World Travel and Tourism Council calculated that tourism generated 6.4 trillion (US$96 billion) or 6.6% of the nation's GDP in 2012.The sector is predicted to grow at an average annual rate of 7.9% till 2023 making India the third fastest growing tourism destination over the next decade.

Product :  Maharashtra Tourism Development Corporation (MTDC) is developed by ABM  a new web portal in addition to  this also set  a Centralized Reservation System (CRS) with robust Document Management Solution. The portal provides advance technical features such geo-location, Weather Information & well categorized listing of all the tourist places Attractions & destinations with complete information in textual & pictorial form, mobile web site as well as device specific mobile applications. The Portal is Multilingual, User friendly, Search Engine Optimization (SEO) Friendly and equipped with secured Content Management System (CMS), and integrated with necessary Payment Gateways Integration. 

TAX REVENUE REFORMS

To address the huge national demand of Property tax reforms, ABM has developed core expertise to assist municipal bodies in migration from Rent based property tax system to capital value based property tax system as well as its automation. Equipped with proven track record of more than 15 yrs in this area, ABM is the best partner in this area for any urban local body. With a unique feature of supporting various Assessment methods such as Ratable value, Capital value & Area based systems; it covers all the aspects of Assessment and billing. It also enables Transparent Tax Assessment and collection. In 2015 ABM has handled 11 + Lac Registered Properties with INR 5524+ Cr Demand generation and 4923 + Cr of collection from 3 mammoth projects.

UTILITIES

Power Sector: The trend in state govts. in the domain of power distribution and supply has been for to split State Electricity Boards into 3 entities – for generation, transmission and distribution. ABM has successfully executed a pilot order from a public sector undertaking for setting up and operating 50 Consumer Facilitation Centers i.e. CFCs. This trend is expected to spin off in other states too. 

Water Billing and Accounting: Ministry of Urban Development, Government of India, has issued broad directives advising all government agencies involved in transportation, distribution and supply of water to make these functions highly efficient by adopting suitable means such as outsourcing due to reasons such as the constraints faced by these bodies in making fresh investments to augment and upgrade the existing infrastructure. 

ABM took heed of bridging the gap and completing the picture, created a solution for water billing. The offering provides billing, accounting ,collection, and MIS.It also provides Consumer Relationship Management solution for Water Distribution bodies through standardization of Customer facilitation centers and extending services whereby various services can be availed online, by mobile app, KIOSK etc. 

Products : ABM has three key products viz. AQUA super for water billing, ABM CFC® and ABM CARE® for Power sector..ERP Solutions from MNCs like SAP bundled with our Subject Matter Expertise 

DOUBLE ENTRY ACCOUNTING REFORMS

ABM has been playing a vital role in initiating change and helping Government bodies in migrating from Single Entry Cash Based System to Double Entry Accrual Based Accounting System. ABM’s Accounts module has been designed as per the guidelines given in National Municipal Accounting Manual (NMAM) and can be implemented by any Government or semi-government body with no or minimal customization. When implemented with other modules of e-Municipality, it has real time integration with all other modules. 

Products : 

Build Chart of Accounts as per the coding structure 
• Maintaining Masters like Vendors, Banks etc. 
• Budget Management 
• Receipts Voucher 
• Pay-In-Slips 
• Payment Approvals 
• Payment Vouchers 
• Journal Voucher, Contra Voucher 
• Deposit Management 
• Loans Management 
• Investment Management 
• Advances Management 
• Bank Reconciliation 
• TDS & VAT 
• Day to day, Year End registers and reports 
• Financial Statements 

In additions to above products ABM has its good presence in  ERP  & CRM/CFC PRODUCTS

                                        SMART CITY

Smart Cities Mission is to drive economic growth and improve the quality of life of people by enabling local area development and harnessing technology, especially technology that leads to Smart outcomes. Ministry of Urban Development aspires to promote smart cities that provide core infrastructure and give a decent quality of life to its citizens, clean and sustainable environment and application of ‘Smart’ Solutions. Latest concept of Smart Cities will change the face of India. 

The 4 main pillars of smart city are :
1) Institutional Infrastructure 
2) Physical Infrastructure 
3) Social Infrastructure 
4) Economic Infrastructure. 


To implement the smart city mission, Government is giving the authority to Municipal Bodies and not any other government bodies such as Transportation, Industrial Development etc. Municipal body’s main function is governance. Good Governance is supported by E-Governance. 

ABM’s solutions are the core of e-governance which can be used in any municipal body. In a nutshell the hierarchy is: Smart City---> Municipal Corporations---> Good Governance--->e-Governance--->ABM Solutions. ABM is the E-Governance engine that powers Smart City. With its extended list of sustaining projects since more than a decade, ABM has immense experience is gauging the information required by any city manager to have single window view. We have helped municipal bodies in Redefining, Re engineering, and Facilitating Citizens/Businesses with cutting edge technology and proven track record. 

ABM’s solutions have supported many giant corporations with its customized products and unbeatable implementation and post implementation services. From hand holding to Capacity Building, ABM is a perfect fit for making the Cities Smarter.

Company website: Click here

Company shares are trading in BSE. Promoter holding in the company is 64.93%.

Company posted 19.88 Cr top line with over 45% operating margin & Net profit is 5.75 Cr in the March qtr.

Stock is trading low PE of 15.

Stock is trading at Rs 148.

Company virtually Debt free.

Promoters have slightly increased their stake ( March) compared to last qtr.( Dec) 

As e-Governance & Smart City concept has attracted a lot of focus from the IT industry in last couple of years, ABM has been working in this sector with a sharp focus, since 1998. Success of e-Government projects depends not only on the technological skills but also on deep knowledge of Government processes. ABM is one of the few companies in India which possesses the blend of both these skills. 

Above this facts this stock will be a portfolio builder & will give multiple-fold returns to smart investors.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”