Buy Satyam Computer Services, tgt Rs 490 : Karvy

Karvy Stock Broking has upgraded its rating on Satyam Computer Services to buy from outperformer with a target price of Rs 490 in its July 22, 2008 research report. "Satyam for Q2FY09 reported a sequential revenue growth of 8.5% to Rs 26.21 billion, which was absolutely in line with our Q1 estimates. The volume growth accounted for only 3% and the balance came from the currency depreciation factor. The billing rates were tad lower at 0.2% sequentially. If we see the promise to performance ratio – Satyam has delivered a much better performance, which to a great extent aided by the rupee factor and in the process has revised the full year revenue and earnings."

"At the current price of Rs 370 the stock is trading at 11xFY09E and 8.5xFY10E. As the valuations are very attractive we upgrade the stock to BUY from an outperformer rating with a price target of Rs 490," says Karvy's research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

For further details click on attachment......