Buy 3i Infotech, target of Rs 147: Karvy

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Karvy Stock Broking has recommended a buy rating on 3i Infotech with a target price of Rs 147 in its August 5, 2008 research report. "After factoring the 26% stake it acquired in Locuz Enterprise Solutions, along with 51% in stake in FinEng Solutions and after acquiring 100% stake in US based Regulus, the order book (which includes the products and software and transaction services) has gone up by 6.1% sequentially in Q1FY09. Against an order book of Rs 6.5 billion in Q1FY08, the order book at the end of Q1FY09 is at Rs 9.2 billion - YoY increase of 41.5%."

"At the current price the stock is trading at very attractive valuations, and it would give 30% returns over the next one year. We recommend the stock a BUY, as we believe most of the risk factors are already priced in, target Rs 147. The only issue, which the company management has to initiate is the writing of goodwill over a longer time frame, which would give investors the requisite confidence," says Karvy's research report.

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