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Tuesday, January 19, 2010

Hot Pick : Prithvi Information Solutions Ltd. Bse Code : 532675

Prithvi Information Solutions is a leading Technology solutions provider involved in the domains of technology outsourcing, process outsourcing, and intelligence solutions and networking solutions. The company aims to be a complete solutions provider and not just a plain vanilla software company. Founded in 1998, Prithvi has offices in USA, Netherlands, Middle East, Singapore and India. It is headquartered in Hyderabad, India. The company is ranked as the 12th largest IT service exporter in India in FY 2008-09 by NASSCOM. Ranked among Deloitte Technology Fast 500 Asia Pacific 2009. Prithvi's global network of development centers and sales offices are in Europe, Middle East and Asia Pacific. Their solutions are particularly advanced and powerful for these vertical markets: Healthcare, Retail, BFSI and Telecom. See the company website:

The Promoters hold around 33% stake in the company as of Sept, 09 and I reckon the holdings of the promoter and FIIs may have gone up during the last couple of months. The half year EPS of Prithvi for the current FY2009-2010 is already 19.17, at current market price, the stock is trading at a dirt cheap PE of around 3 only. The Book Value of the share is around Rs.250 and not so long ago, Lehman Bros. had given a valuation of Rs.469 per share to Prithvi, before the global melt-down happened and LB exited the stock. The stock has seen highs of around 460 in April, 2006, from where it has fallen to the current lows. There were some issues with the management in the past, but if they come clean with the audited results soon, this stock is a potential multi-bagger. Long term investors with some risk appetite can hope to make substantial gains in this stock.