PINC Initiating Coverage - Mid-cap IT

We expand our IT coverage universe by initiating on six additional mid-cap IT firms.

Valuations and Recommendation

Patni Computers

We initiate coverage on Patni Computers with a 'HOLD' recommendation and a target price of Rs '525' on the basis of 12x CY11E earnings (Rs43.7).

Sasken

Sasken is trading at relatively cheaper valuation compared to its peers. We initiate coverage on Sasken with a 'BUY' recommendation and a target price of Rs269 on the basis of 9x FY12E earnings (Rs29.9).

Hexaware

We initiate coverage on Hexaware with a 'HOLD' recommendation and a target price of Rs81 on the basis of 9x CY11E earnings (Rs9).

Persistent Systems

We initiate coverage on Persistent Sytems with a 'BUY' recommendation and a target price of Rs588 on the basis of 14x FY12E earnings (Rs42).

NIIT Technologies

We initiate coverage on NIIT Tech with a 'BUY' recommendation and a target price of Rs243 on the basis of 9x FY12E earnings (Rs27).

Geometric

We initiate coverage on Geometric Technologies with a 'BUY' recommendation and a target price of Rs86 on the basis of 9x FY12E earnings (Rs9.5).

Source : Equity Bulls

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