Sasken to consider buyback

Sasken Communication Technologies has informed the us that the Board of Directors of the company (scheduled to meet on April 18, 2008) will also consider a proposal for buyback of equity shares. This could be a near-term trigger for the stock after a huge under performance of ~50% (against BSE IT index) in the last three months, but our fundamental concerns remain intact.

Citigroup Analyst in a report said,

Sasken’s services business has been significantly impacted by rupee and client-specific challenges, while its products business has gone through challenging times (with no respite in sight). The stock trades close to our target price, and any
move up would provide a more attractive opportunity to sell the stock.

They have a target price of Rs 138 with a SELL High Risk rating on the stock.