Hold Mahindra Satyam, advises Mayuresh Joshi

Mayuresh Joshi, VP Institution at Angel Broking told CNBC-TV18, “If we look at the deal contours that might possibly take place between Satyam and Tech Mahindra going forward, and the kind of earnings per share (EPS) accretive returns that the stock can derive going forward with consolidation in revenues as well as the client concentration that was happening at both ends should more or less get diluted. So, the concentration for Tech Mahindra was more or less to do with BT and so on and so forth.”

“With the merger taking place there might be a lot of synergies happening between these two stocks. The stock can deliver good returns in both US revenue dollar terms where our expectations are around 9-10 percent in terms of dollar growth and the PAT can come down at around Rs 1390-1340 crore. So, our own expectations are that there can be steady PAT growth going forward; it can be EPS accretive for Mahindra Satyam going forward. So, the investor should hold on. Have a little bit more patience; the stock will definitely deliver a positive return over the next one year,” Joshi said.