Lets take a look at the stock of Mahindra Satyam. They are going to declare the result on 29-Sep, for the years in which scam surfaced. First sign of optimistic result is that 29th is a wednesday. Normally, if results are bad, people generally avoid giving them on trading day.
Assuming, that 1/2 of the amount was falsified by one Mr Raju. So, its revenues would be around 4000 crore and profit of around 900 crores. It places Satyam some where in leagues of HCL Tech, Mphasis etc. HCL is having a market cap of currently 29000 crore, Satyam having some 11000 crore. Assuming, the above 1/2 falsified amount, the market cap should quote similar to HCL, so price can see appreciation of another 50 to 100% from the current price.
I have been accumulating this stock for quite some time and have almost 20% of my portfolio built on satyam (not a good idea, but betting on the odds has been a weakness of mine).
If things goes like I said earlier, it can give handsome returns in days to come. Also, once the uncertainty factor is removed from the stock, it is bound to give a direction. Up or down that needs to be seen. I hope it is upward.
I would recommend buying Satyam on dips for a longer term horizon.
Showing posts with label mahindra. Show all posts
Showing posts with label mahindra. Show all posts
Tuesday, September 21, 2010
Sunday, August 16, 2009
Satyam....
The satyam saga has come to an end long time back... Mahindra got what it needed to bring its IT division to big boy's league consisting of Infy, TCS, Wipro....
The reason satyam is being recommended that inspite of the scandal.. it is still a 2 BUSD company... and it is trading at a PE of only 5.8 when the industry PE is 18... with good management in place it wont take long for FII to come back to the shares in herd like they used to do in past... expect this share to be added to F&O segment too.
On a conservative estimate the stock would be rerated and would make it to 200 Rs easily in a year's time.
I recommend a buy on satyam purely on the basis of its fundamentals which got ignored because of the scandal...
Disclaimer: Please do your due diligence before buying any shares.
I bought some shares of satyam today.
The reason satyam is being recommended that inspite of the scandal.. it is still a 2 BUSD company... and it is trading at a PE of only 5.8 when the industry PE is 18... with good management in place it wont take long for FII to come back to the shares in herd like they used to do in past... expect this share to be added to F&O segment too.
On a conservative estimate the stock would be rerated and would make it to 200 Rs easily in a year's time.
I recommend a buy on satyam purely on the basis of its fundamentals which got ignored because of the scandal...
Disclaimer: Please do your due diligence before buying any shares.
I bought some shares of satyam today.
Subscribe to:
Posts (Atom)