Mahindra Satyam - A solid quarter - Kotak

Mahindra Satyam reported strong 2QFY13 performance led by solid 3.5% qoq revenue growth and stable margins. The company is on track to reduce gap in growth rates with Tier-1 IT. Our confidence on relative revenue growth performance is based on solid deal wins, early promise on winning back old clients and strong tailwind in the manufacturing vertical.

Stock trades at inexpensive 9.8X FY2014E earnings. We maintain ADD rating with 12-month forward target price of Rs118.

Source : Equity Bulls

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