Shares of Mahindra Satyam have seen a surge of 10.20 per cent on BSE and NSE on Wednesday, following the news that the company is back in black by clocking a turnover of Rs 225 crore in the quarter ended June 30.

Mahindra Satyam's shares closed at Rs 78.35 on BSE, up by Rs 7.25 over previous close of Rs 71.10. Company's scrip saw a 52-week high of Rs 113.80 in September 2010. The scrip witnessed almost a similar trend on NSE also.

The ADS (American Depository Shares) too saw a growth of 3.92 per cent in the first hours of trading on Wednesday over the OTC (over the counter) trading.

The ADS went up to $3.18 from the previous close of $3.06, following the announcement of winding down of ADS, providing an exit option for investors.

“Good quarterly results coupled with rebound in the markets have helped the company to gain.

“This trend might continue provided that there are no fresh negatives. In the medium-term, scrip's performance would be based on the overall market outlook in India and abroad,” Mr Satish, Joint Managing Director of Zen Securities, told Business Line .

BoA ML differs

In the long-run, its prospect would depend on the merger with Tech Mahindra and the swap ratio, he commented.

Bank of America Merril Lynch, in its analysis, however, has taken a different view.

“While first quarter results were ahead of our estimates, retain ‘Underperform' rating given our view that revenue growth likely to lag peers given exposure to slower growing verticals such as manufacturing and telecom,” it said.

It also felt that current margin levels were unlikely to sustain given relatively higher impact from wage hikes than peers.

Related Topics
comment COMMENT NOW