CMP: 75

Satyam Computer Services Limited is a global consulting and IT services company, offering a wide array of solutions; from strategy consulting right through to implementing IT solutions for customers. Satyam offers a range of expertise aimed at helping customers re-engineer and re-invent their businesses to compete successfully in an ever-changing marketplace.

Mahindra Satyam has posted strong results in the last 2 quarters turning around from losses for 3 years. The company is well on its recovery path under Mahindra after its founder left it to rot years before. The last 2 quarters have made profits of 230 Crores each. The revenues have also grown 40% with revenues around 1400 Crores in each of the last 2 quarters. NPM in the last 2 quarters have been at 15% which is pretty decent recovery from the losses in last 3 years. The current recovery will mean Satyam will trade at a P/E of 8 by the end of FY12 which makes it a good buy at current levels. One can buy and hold for long term watching the recovery unfold.