Polaris Financial may test Rs 150, says Joshi

Mayuresh Joshi, VP Institution at Angel Broking told CNBC-TV18, “If we see the newsflow - more or less the IT services (which accounts for almost 70 percent of Polaris' topline) that it is putting up for sale. It is expecting bids for IT services anywhere close to USD 400 million. Again, if we look at the core businesses that they do in the IT services side it is more to do with the application development, application maintenance and testing.”

“If I go on the value chain of IT services it is at the lower end of the value chain because infrastructure management services (IMS), consulting and products definitely go higher with higher margins as well. So, at the current price it is trading at around 6.5 times which is quite cheap. It can trade at 7.5-8, even 8.5 times going forward. So, in my opinion if the deal goes through in a structured way the stock can reach levels of almost Rs 145-150,” Joshi said.