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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: http://www.prithvisolutions.com

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.

Cheers!

18 comments:

Street said...

Great timing, Superstar!! I was about to ask you to analyze this stock for the benefit of your followers as i was just looking at this stock last night. Prithvi AGM to be held on 30th Jan 2010 where audited results will be declared and also some dividend of (minimum 2-3 rs) is also expected. This is a superb recommendation and now that you have also analyzed this stock I have the confidence to buy it tomorrow. Many thanks for your earlier multibaggers like FCS soft, Bihar tubes, Aurobindo pharma and Crew bos where i made handsome profits. :))

KG Sharma said...

Superstar bhai, thanks for all the valuable picks and even important is the time you devoted in replying to so many of queries. I have one too. What about SicaGen India. Please advise. It is at Rs.18 with book balue of 90. It is a peer of MMTC with PE of 10.75

kochu said...

sir thanks for your great pick.i buy at 76.what is the target of the stock sir.please replay.

Ambrish said...

superstar, i think these are also the wonderful scripts and are heavinly under rated currently (having good track record with handsome dividend paying):
Unichem Labs
Surya Roshni
KCP Limited
GNFC
GSFC
Let us all know your views on these scripts too.

Ambrish said...

superstar, i think indiabulls financials, indiabulls securities are also scripts which can double in 2-3 months (recently saw FII holdings increased to 45% in Dec 2009). Your views on same. Regards Ambrish

Gurvinder said...

hi sir,

what's your opinion on Alok. It's increasing day by day. Do you think it's a good buy at this level?

regards

Superstar said...

Hi everyone, thank you so much for all your comments. I will look at individual stocks as soon as I get some time. Just wanted to update on the overall market. Last two days we have seen some big corrections in stocks across the board in the market. There is weakness in markets across the globe. This is the first major correction happening after a long time, so it is good to be cautious. Buy only good value stocks and wait for dips. The Nifty is precariously poised around 5000 levels and if that breaks on a closing basis we might see 4700 also.

Gurvinder,

I had put a buy call on Alok at around 13-14 levels with first target of 25, which was achieved. I'm yet to look at the latest qtrly results and new updates on the stock, so will let you know if one can buy it afresh at cmp. But if holding, I think one can continue to hold it for some more time.

Cheers!

VIVEK KUMAR said...

Dear superstar
I just came to know about your blog ,i even dont believe that in today life people like you who advice so nicely pls continue for benefit of people like us

I purchased FCS @ 15.80 total - 1500 no Now i am scaring, pls answer I should hold this or when it has to be sold I can hold as long u will recomnd.

VKD

Superstar said...

Hi Vivek,
You bought FCS Soft quite late, it was recommended by me around 4.5 levels. Fundamentally, I think it's fairly priced at 16 and it is currently stuck in a range between 10 and 16. You bought at the high end of the range, when traders should try to buy at lower ends of ranges. Only long term investors can buy at the upper end. Technically, you can keep a SL at 13.5.

Cheers!

Pari said...

I bought K SERA PRODUCTION 5000 @Rs 15 when will the price increase?

Raghu said...

Hi Superstar,
Good day. g
given the current volatile market conditions,is there any stop loss figure for Prithvi Info solution?
Or do you still recommend a buy call on this?

Thanks in advance for your feedback on this.

Regards,
Raghu

Niranjan said...

Hi Superstar,

Could you please guide me what to do with micro tech shares. i bought 2400 at 208. Should i hold it or sell them..please guide me regarding this..
appreciate your help in this..
thanks
best regards
niranjan

Ambrish said...

Superstar, what is the meaning of this (unanimously) for prithvi...

Prithvi Information Solutions Ltd has informed BSE that Members unanimously adopted the Audited Accounts for the Financial year 2008-09 at their adjourned 11th Annual General Meeting (AGM) held on January 30, 2010.

Superstar said...

Hi Pari,

Keep patience with K Sera, I think you will get your price plus some profits too once the miniplex business of K Sera takes off.

Hi Raghu,

Prithvi is available so cheap because of some question marks regarding the authenticity of its books. Once the clouds clear from that, then this stock could be a dark horse. The market is so volatile currently that you might see 10 % up/down ticks on the same day. It's not worthwhile to follow price stop losses, in these shallow moves. You need to watch whether the price is going down with big volumes, then you could bail out. But on lower levels the stock becomes attractive again.

Hi Niranjan,

The price of Micro Tech reached 205 again today after the big correction, but by the closing it again went down. Market is so volatile right now, the prices are fluctuating wildly. If you are a long term investor, say like one/two years or so, then I reckon there's nothing to worry. But for short term traders, these volatile times are good trading opportunities.

Hi Ambrish,
This means that the audited accounts for the year were adopted without any opposition from any board member. Unanimously.

Cheers!

Dilip Kumar said...

Hi Superstar

After the european crisis where do you think the market will stop falling? People are talking of 4000-4200 nifty. Whether one should get out and wait for the correction.

Superstar said...

Hi Dilip,

I had predicted around 4700 when Nifty first went below 5000, so that has played out. Now it all depends on the world markets how the Nifty performs from here on because all the world markets tend to move in a synchronized way these days. It may go down to 4500 levels if 4675 is broken on a closing basis, on the down side....after that we'll see. Alternatively, the Nifty can keep trading between the current range of 4770-4950 for some more time before breaking out on either side.

Cheers!

Superstar said...

Hi KG Sharma,

Sicagen has gone down to 17 levels presently, and I would suggest to keep a stop loss of around 15 on that stock. The company has no dividends or bonus history and had a 52 week low of 2.81. This is a a very small company with a mkt cap of just 67 crores, so the stock can be taken either up or down by the operators easily. So I think it falls in the category of a punter stock.


Cheers!

Sarath said...

sir,
really am so excited after watching today's market. prithvi showed a drastic upward movement.your pick's are really rocking. I just want to know 1 thing at which level prithvi is good to book profit.? At which level GHCL to book profit? i got a wonderful experience through super star gems.sir u keep rocking like this.your valuable suggestions and advices will always help us in securing the profit and investment.