It is the day after the biggest scandal hit India Inc. In a letter sent to the board and regulators, Satyam founder-Chairman B Ramalinga Raju confessed to fraud in the company’s accounts. Yesterday, the Satyam stock took a beating and fell over 77%. So, how should investors trade Satyam now? Experts delve deeper
Shankar Sharma, Joint MD, First Global, feels the Satyam stock can go down to Rs 10-30 levels.
Brokerage firm CLSA maintains target of Rs 25-40 on Satyam.
However, KR Choksey Research has advised investors to swap Satyam Computer Services with Infosys Technologies. "Even after the verification, restatement of financials and resolution of critical financial and regulatory issues, it is extremely unlikely that we will see a significant improvement in the company’s business prospects or client confidence."
Hitesh Agrawal, Head Research, Angel Broking advises current investors to exit and non existent investors to stay away.
Reliance Money has advised investors to reduce their holding in the company. "We continue to remain negative about Satyam and reiterate our reduce rating," the Reliance Money's research report said.
Similarly, Religare Hichens Harrison Research has advised investors to exit Satyam.