Even though you are a good high jumper , you can`t escape the law of gravity.
I was posted this message on July 21. I am once again posting this ,not to say , I am great . It is a learning process.
21 Jul 2009 02:11 Mahindra Satyam reasonably priced around Rs85
Posted by : bathulavb View full thread (1 messages)
Tracked by: 0 Boarder
In my opinion MS reasonably priced around Rs85. This is my understanding.
Feb 2009 estimated net profit 52 crores ( As per open offer disclosure)
Yearly estimated net profit Rs 624 crores ( 52*12)
Industry avg P/E 16
Traget MC 9984 Crores (624*16)
Number of Shares 117.55 Crores
Projected Share Price 9984/117.55 = Rs 85
Mahindra paid Rs 2908 crores to buy Satyam. This cash may be used for legal litigations ( UPAID and Class action suits)
My dear bathulavb,
U mentioned that mahindra satyam`s estimated profit is around 624 crores and it means EPS is nearly 5.50 now the industry peers like wipro, tcs and infosys are trading around 22 to 27 time if we calculate in that ratio this scipt must be above 110 rupees. See what compny vice chairman said the liabilities are not more than they expect and almost many liabilities were discharged and they are maintaining the runrate of revenues as expected. so be patient and wait upto the results come out if the results the share will trade above 30 time pe
First statement , I am a long term invetor in Satyam and Satyam is 10% of my portfolio.I am not a monkey , thanks to pitquote , I borrowed your word. I won`t jump from one company to another company . Minimum I stay in any company not less than 5 years.
I will try to understand the business value of the company before I invest. I will not invest unless it is available less than its intrinsic value. I won`t sell unless it is heavily overpriced. I have a taste of 100 times appreciation to my purchase cost , but after 7 years.
In Satyam my opinion is , don`t expect any miracles . Still it has to settle lot of issues. It is not a junk stock or not even a jewel. I am not convinced to compare MS to Infosys and TCS . It has to go a long way to get a first row seat.
Based on available information at present context ,it is worth for around Rs 85. If you buy at 120 expecting 200 in a month or two I am sorry. You are a looser.
Thank u my dear bathulavb for you are choosing to be as tortoise in a well. But Monkey which is the orgin of human being and in these days changes are happening rapidly 5 years are very very long term. Whether u accept or not Mahindra satyam has traded at 26 times and is trading at around 20 times at present on the last disclosed profits of the company through proforma financial statements released for one month. According to which Mahindra satyam will get around 5 rupees annualised EPS and It has traded above 125 which means it has traded around 25 pe and now it is at 92 it is around 20 times. You said Your are not expecting any miracles unless and until all the issues setteled by the company but on what miracle it has raised from 45 to 125 was there any settlement of any issue by company? No just proforma results which is worked like a miracle. Just see Millions of million shares are trading every day for such a stock a small news is enough to go beyond 30 times pe if it is good news other wise it will collapse like that. So I am also not comparing with infosys and tcs but Mahindra satyam has a craze in market if any good news in form of good results will kick it to 180 levels.
| NIFTY 
