Mahindra Satyam - Surprise on margins continues, retain ACCUMULATE - Emkay

Mahindra Satyam reported inline revenues, however margins continued to surprise +ively yet again with margins nearly flat QoQ at 21.5% despite wage hikes.

- Msat's margins have improved through every single qtr since Sep'10. While bulk of margin improvement is behind us, top clients mining continues to be the focus

- MSat's investments in sales and marketing/account management yield results through top clients led growth and increased success and participation in larger deals

- Raise FY13/14E EPS by 5/6% to Rs 10.5/11 respectively driven primarily by higher margin assumptions. ACCUMULATE, TP Rs 125 stays.

Source : Equity Bulls

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