Satyam down, firm lacks strategy: Analysts

By : |November 29, 2000 0

NEW DELHI: Shares of Indian software firm Satyam Computers Ltd. were down two
per cent in a sideways market and analysts said the stock had fallen on worries
that the company lacks direction.

At 11:00 am, Satyam was quoted Rs 7.20 lower at Rs 347.85. The 30-stock
benchmark Bombay index was up 10.18 points at 4,034.10.

"There seems to be an overall lack of direction," an analyst with a
Mumbai-based research firm told Reuters. "That has had a significant impact
on how larger investors perceive the stock." "There has been no
improvement in the working capital cycle and possible dilutions through an
overseas listing will hurt sentiment further," he added.

                                 

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But Sanjay Parekh tracking Satyam at Sunidhi Consultancy Services said:
"Concerns (about the company’s direction) do remain, but rationally
speaking, all the bad news is reflected in the price. I am hopeful of seeing a
marginal rise in hourly rates in the coming quarter."

Traditionally, Satyam was quoted at a 20 to 30 per cent discount to Infosys .
But the markets have widened that gap by punishing Satyam. The stock seems to
have bottomed out, Parekh added. Worries that Satyam would plough more money
into its overseas listed subsidiary Satyam Infoway have also subsided.

"Investors are likely to make a decent amount if they buy at current
levels," Parekh said. At Rs 347.85, Satyam is 76 per cent below its
all-time high of Rs 1,445.99 struck on March 7, but is some 19 per cent above
its low of Rs 291.50 touched on October 19.

(C) Reuters Limited 2000.

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