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Mahindra Satyam shares rally on earnings hopes

Mahindra Satyam shares rally on earnings hopes
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First Published: Wed, Jun 23 2010. 01 12 PM IST
Updated: Wed, Jun 23 2010. 01 12 PM IST
Mumbai: Shares in Mahindra Satyam jumped as much as 11% to their highest in more than a month on Wednesday on speculation the Indian software services exporter will post strong revised earnings.
The company, earlier known as Satyam Computer Services, was acquired by Tech Mahindra in April last year after the company was hammered by India’s biggest corporate fraud, which came to light in January 2009.
Last week, Mahindra Satyam said it had sought time till 30 September from authorities to file financial statements relating to fiscal years 2008 and 2009. The company law board had earlier set 30 June as the deadline for the filings.
“There is some speculation in the market about the company coming out with its revised numbers sooner than the September deadline and the numbers are expected to be quite positive,” said a sector analyst with a domestic brokerage firm. “With the overall Indian outsourcing sector looking up and the deal flow rising, Satyam could also see some new client wins in the near term,” said the analyst, who refused to be named as he was not authorised to speak to the media.
Last month, Mahindra Satyam said it had won a five-year contract from GlaxoSmithKline that followed a four-year, $48 million outsourcing contract secured from Denmark-based technology firm KMD.
Mahindra Satyam shares were trading up 8.5% at Rs92.45 ($2) by noon (0630 GMT), after having risen as much as 11.3% earlier in the day to its highest level since 4 May. The main Mumbai market was down 0.3%.
The shares were the most traded on the Bombay Stock Exchange with 12.6 million shares, roughly 9 times their 30-day average, changing hands.
Shares in Tech Mahindra, a unit of tractor and utility vehicles maker Mahindra & Mahindra, was trading 3.6% higher at Rs743.75, having earlier risen as much as 4.4%.
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First Published: Wed, Jun 23 2010. 01 12 PM IST
More Topics: Tech Mahindra | Sensex | Shares | Satyam | BSE |