Reliance Securities has come out with a report on Glodyne Technoserve's Q2FY10 earnings. The research firm continued to remain positive on long term sustainability of Glodyne’s business model and recommended buy with a 12-month price target of Rs 455.

"Glodyne Technoserve continues to show consistent strong financials and operational performance, and the quarter gone by was no exception with strong all-round growth seen in the key business area. We have incorporated the numbers from Broadllyne Technologies in our estimates for FY10E and FY11E, we estimate an EPS CAGR of 40% over FY09-11E on diluted equity capital of Rs 234 mn (including Compulink System equity swap). At CMP of Rs 308, stock trades at 6X FY10E earning and 5x FY11E. We continue to remain positive on long term sustainability of Glodyne’s business model, we recommend buy with a 12-month price target of Rs 455 and at our target price stock would be valued at 9.5x FY10 and 7 x FY11E earning", says Reliance Securities.

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