On mobile Global is one of the
major players in Indian Mobile VAS ecosystem with strong presence across
different geographies. Post MVAS regulation implementation in India during
2011-12, most of the Mobile Value Added Company underwent major shock wave and
tried hard to cover themselves from direct and indirect impact. The Listed
On mobile Global equity price went through major hammering. Investor also lost
their confidence in Company Compliance which led to major CXO level exist.
On mobile Global during 2014,
called as major laggard in Indian equity market when its price even went to INR
28 to 29 ranges. By Early 2015, management started putting all the building
blocks of their product line and kept their focus on Ring back tone which
helped them to gain Telephonic business in Europe to Americas whereas gain
business from Airtel Africa unit. Management also managed to sell non
performing business unit and invested the same in data centric business to
offer data centric service, platform to B2B and B2C. It is expected that their
investment in content procurement is going to bring fruit with the higher
adoption by end consumer post data price war start between Incumbent Mobile Service Provider and Reliance Jio.
The equity price started
recovering and by the end of 2015, On mobile Global equity gave excellent return
to its investors. Currently the equity price is hovering between INR 115 to INR
124 and company is relying heavily on fully fledged adoption of 4G network by
the end user. Most of On mobile global competitor changed their strategy and
moved into the Application segment whereas On mobile global invested heavily on
the platform side which kept their differentiation in the marketplace.
In my point of view, the dividend
paying company as well as active share buyback on regular interval helped
On mobile global to regain their investor confidence. I will not be surprised in
a scenario, On mobile give further 50% return in next 12 month given the dynamics
of Telecom sector in geographies they are operating.
In my point of view, retail
investor should think of buying the equity on delivery basis rather than
F&O basis to be on the safer side.
Disclaimer; I invested in
Onmobile Global and advise reader or potential investor's to consult their
financial advisor before investing
