Mahindra Satyam News

Mahindra Satyam, formerly Satyam Computer Services, continues to shine in the stock market. The stock, which has rallied more than 30% in the last seven days, crossed Rs 100 on July 23, and is now back among the top-five Indian IT companies’ list in terms of market capitalisation (with market cap of about Rs 12,000 crore) after Infosys, TCS, Wipro and HCL Tech.As of today, Mahindra Satyam’s market cap is greater than that of its parent company, Tech Mahindra.

Attributing the recent move up in its stock price to a bridge-up, Sanju Verma, CEO - Institution Biz, Proactive Universal Group, said the stock was still trading at a discount. “A lot of analysts are still not factoring in the 1100-1200 acres of land that Satyam holds. If they assume the company has Rs 300 crore of liabilities outstanding against that, even then, the land is still valued at something like close to Rs 11 per share. If you add this Rs 11 per share to the Rs 7 EPS you are talking of purely on the back of earnings momentum, the stock is still available at dirt cheap multiples,” she said.
On technicals, Rajat Bose, technical analyst said, "It’s a buy and it was a buy, the next target is Rs 120 and probably that target will be met sooner or later and once that level of Rs 120 is crossed then it is going to move further up. So if you ask me what are the sectors that I think in the next leg of upswing, IT is definitely one and Mahindra Satyam will definitely do well there."
In fact, the stock in back in the good books of mutual fund managers.