Exit Infinite Computer Solutions around Rs 105: Agarwal

Rajesh Agarwal, Head of Research at Eastern Financiers told CNBC-TV18, “The buyback offer is not interesting. Infinite Computer is free to buy at lower prices than Rs 120. So, nothing to do with the stock price in the very short term, but fundamentals are quite strong. They have reported strong set of numbers; profit after tax (PAT) was up by around 44 percent.”

“It has announced an interim dividend of Rs 6 and Rs 3 per share as a final dividend. That gives a yield of 10 percent which is even higher than any fixed deposits (FDs). It is a cash rich company - Rs 135 crore cash as on March 2013. The only concern with this company is huge debt. On sales of around Rs 445 crore the debt stands at around Rs 325 crore, which is too high by any parameters. I would suggest hold on to the stock and get out at around Rs 105,” Agarwal said.