Limited upside in Mahindra Satyam: Religare Capital

Limited upside in Mahindra Satyam, says Manoj Singla, MD and Co-Head Research, Religare Capital.

Singla told CNBC-TV18, "Mahindra Satyam - the operational improvement is actually quite slow and honestly I had expected operations to improve more significantly. If you look at the volume growth you are still in low single digits. I think that leaves a lot to be desired especially in environment where tech spending seems to be doing pretty well." He further added, "Secondly I think on the margin front there has been a big disappointment, we obviously saw the big cut in margins in September quarter and they do not seem to have recovered as well. Obviously margins will recover from here so they will go up from something like 5% - 6% EBITDA margins to probably over 10%. But I think that