CMC has target of Rs 2450: Shah

CMC has target of Rs 2450, says Gaurang Shah, Geojit Financial Services.

Shah told CNBC-TV18, "I guess with the kind of transformation process that CMC has gone through in FY11, we believe that they have shifted their focus from less profit oriented hardware business to more of margin growth verticals like software service providing. It has also planned to move from government dominated orders to private sector and overseas assignment. It is also going to concentrate on domestic clients; they are going to see growth coming in from infrastructure e-governance, banking financial services and insurance (BFSI), retail and mobile technology."

He further added, "Since it plays very well in the TCS, TCS is able to leverage the capabilities of CMC by getting better revenues announced, about 47% of the revenues commenced from TCS. So, given the kind of business profile that they will see and they plan to grow much faster in this profit oriented verticals in the near future. Here we have a price target of about Rs 2450."

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