Buy Genesys International on correction: VK Sharma

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Buy Genesys International on correction: VK Sharma

VK Sharma, HDFC Securities is of the view that Genesys International Corporation is a good stock to buy on declines.

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Excerpts from Markets Midday on CNBC-TV18 Watch the full show » ALSO READ See previous views by VK Sharma See what other Experts & Brokerages are saying about Genesys Int See messages about Genesys Int Genesys Int BSE | NSE 30/05/12 Are Mutual Funds betting on Genesys Int?

VK Sharma, HDFC Securities is of the view that Genesys International Corporation is a good stock to buy on declines.

Sharma told CNBC-TV18, "Genesys International Corporation is a stock that is getting rerated. It is getting rerated because of the tremendous visibility, which is there in the sector -geographic information space (GIS). Genesys is set to emerge as one of the leading providers of content. As the biggies in the telecom business, in the mobile business, they fight it out in terms of the 3G licenses, they need to differentiate themselves from one another by offering value added services. This is the market which Genesys will address in the next two years. So currently the stock is going at 15 times earnings, but this is only historic earnings. The new products and services which are there for the municipal services, for the police, for the telecom and the power business, I think the solutions that it has are going to delight those customers because you are perfectly placed to deliver the kind of products which your buyer wants. So from that perspective, these businesses will further add to whatever business that it has."

He further added, "In current business, it has Nokia, Navteq, Google and Microsoft as its customers. Besides, it is now invertly looking for domestic business which will make it a truly content company because content companies tend to get a better pricing. For instance Navteq was bought by Nokia at 50 times the profit and even a loss-making company like Tele Atlas was bought by TomTom almost 12 times the topline. So this company is a company to watch. Currently, future earnings are not yet discounted, so when the company tells about the future business, I think investor confidence will increase. So this is a company which can be added at dips."