CMC may go up to Rs 3000: PN Vijay

CMC may go up to Rs 3000 in the next 12 months, says PN Vijay, Portfolio Manager.

Vijay told CNBC-TV18, "One company, which I have started liking, is Company Maintenance Corporation or CMC for short. Old-timers will recollect CMC took over the legacy business of IBM when it made its exit out of India in the mid-70s. Then few years ago CMC was taken over by TCS and today CMC is a subsidiary of the IT major TCS part of the Tata stable. Now in the last three years from 2008, CMC has transformed itself in a very big way. Firstly, it has transformed its product range. From being a customer services company, where it actually supplied systems and maintained them, which was a low margin business, CMC has gone into system integration and embedded software, which has 30-35% margin businesses. So this has had an extremely positive effect on CMC's margins, which are standing at 19% for the company as a whole apart from that CMC has made a geographical shift. He further added, it was originally a domestic IT player now it is concentrating more on exports with the help of it parents TCS and today about 60% of its turnover is in exports. So all this is good news fro the shareholders and recently CMC announced a 1:1 bonus, which shows the confidence of the company about its future CMC at Rs 2000 is an excellent buy and I see it going up to Rs 3,000 in the next 12-months.