Sell Patni Computer Systems: Indiabulls Securities

Indiabulls Securities Research has come out with a research report on Patni Computer Systems. The research firm has maintained sell rating on the stock, in its report dated November 18, 2009.

"Patni Computer (Patni)’s net sales stood at USD 167.2 million in Q3’09 was ahead of its guidance of USD 163-165 million. Net sales grew 3.3% qoq primarily due to volume growth of 3% and favourable currency movement of 0.3%. EBITDA margin declined 73 bps qoq but improved 35 bps yoy to 20%, owing to improved utilization and operational efficiencies. We have upgraded our revenue growth for CY09 and CY10, on expectation of improvement in demand from IT and ITES sectors. Consequently we have raised our target price from Rs 370 to Rs 400. However, the stock has rocketed more than 175% in the last two quarters, hence, we maintain our Sell rating", says Indiabulls Securities Research.

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