Buy Zylog Systems , says PN Vijay, Portfolio Manager.
Vijay told CNBC-TV18, "I have a buy on Zylog Systems. It is a midsize IT firm based out of Chennai and they are into IT product solutions and services. They have gone into a fairly onsite business model with acquisitions in Dubai, Canada and they are a company that believes in local profits and local geographies through local people, so Obama will like this company. It is a bit different from all other Indian IT companies like TCS and Infosys , who have huge offshore location and because of this Zylog has an excellent per hour billing rate."
He further added, "In last quarter they had USD 58 per hour billing rate, which is far higher than what the tech biggie's show. They have centre in New Jersey and Chennai and large corporation in Dubai and Canada. They had a pretty impressive last quarter, the topline and bottomline went by 16% and 8% quarter on quarter."
"I expect the company to close the financial year at an EPS of slightly above Rs 100, Rs 110 is my expectation. The stock is closing around Rs 490. I am giving a target of Rs 1,100 for Zylog in the next 12 months as I feel it will get re-rated at some point in time. I am a financial advisor to the company.
