Satyam Computer an outperformer: Prabhudas Lilladher

Prabhudas Lilladher has maintained its outperformer rating on Satyam Computer Services with a target price of Rs 493 in its July 19, 2008 research report. "Consolidated revenue grew by 8.5% QoQ in rupee terms to Rs 26.216 billion. Operating profit grew 14.8% QoQ, while PAT grew 17.3% QoQ to Rs 5.47 billion. Operating (EBITDA) margin expanded by 133bps, while PAT margin expanded by 158bps."

"We expect Satyam to report earnings growth of 29.1% and 18.9% in FY09 and FY10 respectively. We believe the current macroenvironment will test the resilience of Satyams business model and its ability to maintain/deliver peer-leading growth numbers. At the CMP of Rs 383, it quotes at 10.1x FY10E earnings. We maintain Outperformer rating on the stock with a target price of Rs 493 (13x FY10E earnings)," says Lilladher's research report.

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