New York: Shares in Rediff.com, India’s third-largest Web portal, are overpriced according to an analysis by US financial newspaper, Barron’s.
Though the stock has been partly boosted by rumours of being an acquisition target for larger international rivals, Barron’s said there were serious doubts about Rediff’s valuation based on its market capitalization and the size of its potential market.
By some estimates Rediff’s market capitalization is more than 13 times the entire Indian online advertising market, from which the majority of its revenues are earned, Barron’s said.
Barron’s also said Rediff’s grip on its market seems to be slipping as Web giants Google Inc. and Yahoo Inc. get a foothold in India.
Shares in Rediff.com fell $1.05 to $25.41 on Friday 13 July.