Last Updated : Jan 04, 2016 09:44 AM IST | Source: CNBC-TV18

Look at Majesco, says Dipen Sheth

Dipen Sheth of HDFC Securities is of the view that one may look at Majesco.

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Dipen Sheth of HDFC Securities told CNBC-TV18, "Here is the disclaimer. We found Majesco when it was already up. I don't know how many percent since the beginning of the year and even from the price we have recommended. So, at the price where we recommended it, it was already a multi bagger. So, that kind of made us a little defensive about whether we should be really wanting to recommend the stock. So, let me go out on a limb and say Majesco might be also a very interesting stock even for this year and the reason for that is not difficult to fathom."

"It has got a tremendous addressable opportunity and non-linearity in that opportunity which means it requires lesser capital as it moves forward to grow and the revenues and the profits can be disproportionate as you move forward. There isn't a linear relationship between revenues and profits in this business. So, it is in the software products space and it is highly rated in that space and it is finding customers and it is investing in these products, into areas which will make these products more attractive. So, I would suspect that we shouldn't take the foot off the pedal here," he added.
First Published on Jan 2, 2016 09:42 am