ILFS Puts a REDUCE Recommendation on Patni Computers

IL&FS has initiated coverage on Patni Computer System Ltd with a REDUCE recommendation. It is another way to SELL and Exit. ILFS in its research reported stated,
Therefore we maintain our ‘Reduce’ rating on the stock and recommend a shift from Patni to other large players like Infosys and Satyam. Also note that the management guidance for the next quarter is 0.2% growth in revenues for QoQ and 8% sequential FALL in net profits. Patni’s problems are evident from this blog posting where one of the professors on the board of Patni is not so bullish on India. These are Patnspecificic problems only.

However, DalalStreet.Biz is not very bullish on Satyam with a one year target price of Rs495 which leaves limited upsidpotentialal on your investments and DalalStreet.Biz recommends a BUY on HCL-Technologies with a price target of Rs750 in a year.

The entire report by ILFS on Patni can be accessed here.[PDF]