Chabria told CNBC-TV18, "I am having a price target of around Rs 120 on Blue Star Infotech. The company belongs to the Blue Star group and its existing for the last 25 years. The company is a global provider of product development services, travel testing solutions and enterprise resource planning (ERP) solution. The company's one of the major customer is Hewlett Packard, the company has 24 year long relationship with Hewlett Packard. The company is Microsoft Certified Gold Partner. Among other major client names includes Sun Pharma, Cipla, Hitachi Medical Corporation. Personally I do not have any holdings in the stock but in the past I have recommended the stock to my subscribers."
He further added, "The stock quotes at a PE of around 5 and dividend yield of 6.25%, the company has a cash of about 23 per share on its books though it's a debt free company and available at a PE of just 5 and belonging to the Blue Star group. Regarding the financials for the year ended March 2009, the company posted net profit of Rs 15 crore on net sales of Rs 155 crore and on equity of Rs 10 crore the earnings per share (EPS) stood at Rs 15.5."
Disclosure: It is safe to assume that I personally do not hold the above stock but have recommended them to my clients.
