Mahindra Satyam tanks 8.9% | autos | Hindustan Times
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Mahindra Satyam tanks 8.9%

The share price of Mahindra Satyam declined sharply on Thursday — the first trading session — after the company announced the results for the fiscal year ended March 2009 and March 2010. Shares fell by 8.9 per cent to close at R90 on the Bombay Stock Exchange.

autos Updated: Sep 30, 2010 23:28 IST
HT Correspondent

The share price of Mahindra Satyam declined sharply on Thursday — the first trading session — after the company announced the results for the fiscal year ended March 2009 and March 2010. Shares fell by 8.9 per cent to close at R90 on the Bombay Stock Exchange.

This came at a day the BSE Sensex rose by 113 points, or 0.6 per cent, to close at a 20,069.

The company’s share price traded under pressure throughout the day, after the company announced on Wednesday a loss of R125 crore for the fiscal year ended March 2010 and disclosed that the total quantum of fraud amounted to R7,855 crore.

While experts said there was now certainty and clarity on the actual status of books of accounts of the company and that augurs well for its future growth, markets were disappointed with the loss number and an operating margin of 8.3 per cent.

“A lot more is now known and that is comforting, but I think the company has to still do a lot of work,” said Aseem Dhru, CEO, HDFC Securities.

JP Morgan downgraded Mahindra Satyam to ‘Neutral’ from ‘Overweight’ and also slashed the price target on the stock to R90 from R140 amid reports that the US Securities and Exchange Commission is considering a civil suit against the company.