The stock of India`s most disturbed software company looking weak in many aspects.... many quality investors not interested in the stock due to continueous postpone ment of results....
Few of its followers expecting the stock may not trade above 100 in the near to medium term....
Holding cost of L&T is at around 90,still they have over 10% profits in this investment.... if they delay further in selling the stock,they may have to sell for loss....
The fact that they are not selling eventhough they have an enabling resolution to do so, means they are expecting better prices, by the cost to L&T is not 90/- but 80/-
L&T is holding till Jan 2010 so that they don`t have to pay short term capital gain tax of 15%, which on completion of 1 year of holding will be tax free except negligible STT.
Satyam will crash again, as CEO has confirmed that Satyam`s Net profit margin is at 3% only, unlike Wipro, Infy, TCS of 20-25% NPM.
At 3% NPM, Satyam`s EPS would be Re. 1 considering additional capital issued to Mahindra for 51% stake. That`s PE multiple of over 100, against Infy`s PE multiple of 20.
| NIFTY 
