Sell Mahindra Satyam and switch to Tech Mahindra: Agarwal

Rajesh Agarwal of Eastern Financiers is of the view that one should sell Mahindra Satyam and switch to Tech Mahindra.

Agarwal told CNBC-TV18, “The numbers were good rather better than expectation with PAT going up by around 56% and the total income going up by 31% even the margins were better 21.7%. Going forward I don’t think there is much of an upside left because the merger with Tech Mahindra is already been announced in the ratio of 17:2. Any price movement would be in tandem with the price of Tech Mahindra." He further added, "Although on the valuation parameters trading at PE of 7.5 which leaves enough room for appreciation but still I would prefer switching to Tech Mahindra rather than sticking to Mahindra Satyam. In any case the shares are going to be converted into Tech Mahindra and it is just a matter of time so why not switch right now. I would suggest sell Mahindra Satyam and switch that money to Tech Mahindra”