Wednesday, August 27, 2008

Tech Mahindra gains on BT exit buzz

Tech Mahindra rose 0.92% to Rs 792.05 at 11:49 IST on BSE on reports BT group is planning to sell its 31% stake in the firm, having decided that the holding does not fit its long-term strategy.
However, the management of Tech Mahindra has denied any knowledge of British Telecommunications (BT), its long-term joint venture partner, contemplating selling its stake in the company, according to a business news channel..
The stock hit a high of Rs 802 and a low of Rs 787.10 so far during the day. The stock had a 52-week high of Rs 1550 on 11 October 2007 and a 52-week low of Rs 614.80 on 17 March 2008.
The mid-cap software services company has an equity capital of Rs 121.64 crore. Face value per share is Rs 10.
The current price of Rs 792.05 discounts its Q1 June 2008 annualised EPS of Rs 83.74, by a PE multiple of 9.45.
"We are not aware of the move from BT's side," a top Tech Mahindra official was quoted as saying by a business news channel. "We have received long-term business commitments from BT in the last two years," he added.
Mahindra & Mahindra owns about 44.25% in Tech Mahindra (as on 30 June 2008).
Tech Mahindra reported a net profit of Rs 254.36 crore in Q1 June 2008 as against a net loss of Rs 207 crore in Q4 March 2008. Sales rose 11.10% to Rs 1100.70 crore in Q1 June 2008 over Q4 March 2007.
Tech Mahindra develops and markets computer software for the telecom sector.

No comments: