Hold Patni Computer: Phani Sekhar

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Hold Patni Computer: Phani Sekhar

Hold Patni Computer Systems, says Phani Sekhar, Fund Manager, Angel Broking.

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Excerpts from Your Stocks on CNBC-TV18 Watch the full show » ALSO READ See previous views by Phani Sekhar See what other Experts & Brokerages are saying about Patni Computer See messages about Patni Computer Patni Computer BSE | NSE 09/02/12 Are Mutual Funds betting on Patni Computer?

Hold Patni Computer Systems , says Phani Sekhar , Fund Manager, Angel Broking.

Sekhar told CNBC-TV18, "I would not advice the investors to add more of Patni Computer to his/her current holdings but I would certainly advice to hold on and maybe buy on steeper declines of around 20-25%. This is purely based on valuations. The basic problem with Patni was over the last three years their business model has really not stabilized. So it has actually varied from 18% net margin to a 10% net margin business, so that way it is quite difficult to say what kind of profits they are going to clock going forward."

He further added, "If one see the demand environment is improving and with the pressure especially on the currency side elevating to a great extent, I would think that this company can clock around Rs 500- 550 crore of profit based on which it is currently trading at 10-11 times, which is not very expensive considering that it is the six largest software exporter. So I would clearly advice the investor to hold on to Patni and see where it goes from here."