Market to see smart numbers from Mahindra Satyam
After a gap of two years, IT major Mahindra Satyam's financial results will be announced later today and analysts believe that the declaration will bring cheer to the investors.business Updated: Sep 29, 2010 12:55 IST
After a gap of two years, IT major Mahindra Satyam's financial results will be announced later today and analysts believe that the declaration will bring cheer to the investors.
Mahindra Satyam, earlier known as Satyam Computer, will announce its results for 2008-09 and 2009-10 financial years.
"The fundamentals of the company are very strong with the management of Mahindra Group, and the market is expecting excellent results from the company today," Geojit BNP Paribas Assistant Vice-President Gaurang Shah said.
Echoing a similar opinion, Religare's Executive Vice President Retail Research Rajesh Jain said, "Satyam will see good times in the coming days with the management of Mahindra Group. The business of the company has improved considerably and the IT major should come out with robust numbers."
Mahindra Satyam had not published its financial results since its Founder and Chairman B Ramalinga Raju in January 2009 admitted to fudging the company's accounts for years. The company had last announced its numbers for the July-September 2008 quarter.
In anticipation of good performance by the company, shares of Mahindra Satyam today surged nearly four per cent on the Bombay Stock Exchange, extending its gaining spree for the second straight trading session.
Commenting on the stock movement, experts said the reports of Tech Mahindra's merger into Mahindra Satyam is also powering the surge in the stock.
"The market should maintain a wait and watch policy as enough has been speculated about the company's performance for the fiscal years 2008-09 and 2009-10," Unicon Financial Services CEO Gajendra Nagpal said.
Following an admission of multi-crore accounting fraud by Raju in January 2009, the beleagured firm did not come up with audited results.
Tech Mahindra took over reins of the company in April 2009 and rebranded it as Mahindra Satyam.
The Company Law Board had given exemption to Mahindra Satyam from publishing results for two financial years.
The audited numbers are likely to give a clear picture about the financial health of the company.
Besides, the company had last week announced that it will delist its American Depository Reciepts (ADRs) from the New York Stock Exchange on October 14, citing its inability to comply with the US market guidelines.