Digital ranked a buy: Analysts

NEW DELHI: Shares of Indian computer software firm Digital Equipment Ltd.

leapt 4.7 per cent on Friday and analysts said the company's business was

growing at a much faster clip than anticipated.

At 2:56 p.m. (0926 GMT), Digital was up Rs 24 rupees at Rs 532, off its day's

high of Rs 537. In contrast, the 30-stock benchmark Bombay index was up 0.56 per

cent at 3,874.83 points.

"We have changed our rating to Buy from Sell on Digital as the business

seems to be improving at a faster pace than originally believed," said

Motilal Oswal Securities analyst Mahesh Vaze.

"The company has doubled its people to 920 from 400 a year earlier. The

stock should quote around Rs 900 in two years," he added. Priya Rohira,

analyst with Bombay-based Pranav Securities, said she expected the company's

telecom division to be the growth driver for the stock. "The immediate

price target is likely to be Rs 600."

A dealer at a domestic brokerage told Reuters that on average, the trade size

on the Digital counter was 10,000 shares each against a total volume of 3.5

million shares on the Bombay exchange. "There are fund enquiries on the

counter," the dealer added. At Rs 532, Digital is down 66 per cent from its

calendar high of Rs 1,569 on January 20, but is 54 per cent higher than its low

of Rs 346.25 touched on October 19.

(C) Reuters Limited 2000.