Indiabulls Securities Research has upgraded its rating on Patni Computer Systems to buy with a target price of Rs 142. Patni Computer Systems (Patni) reported a modest sequential growth of 4.2% to Rs 8 billion for Q2’09, helped by the sharp depreciation of the rupee.
Indiabulls Securities Research has upgraded its rating on Patni Computer Systems to buy with a target price of Rs 142 in its November 25, 2008 research report. "Patni Computer Systems (Patni) reported a modest sequential growth of 4.2% to Rs 8 billion for Q2'09, helped by the sharp depreciation of the rupee. respectively. The stock trades at a heavy discount to the industry average multiple of 7.9x and 7.2x for CY08 and CY09, respectively. Besides, based on our DCF valuation, we have arrived at a target price of Rs. 142, assuming an 8% Rf, a 5% terminal growth rate, and a 13.1% WACC. Our target price provides an upside of 20.3% over the current levels; thus, we upgrade our rating to Buy," says Indiabulls Securities' 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.
To read the full report click on the attachment......
