Hold KPIT Cummins Infosystems Ltd.

Target :Rs 130
CM Price :Rs119.25

Company Background
KPIT Cummins Infosystems Ltd is in the business of software services and products. A team of six professionals Ravi Pandit, Kishor Patil, Anil Kulkarni, Sachin Tikekar and Shrikrishna Patwardhan promote the company. KPIT’s marketing model follows a UK centric strategy. The company is one of the few companies to have penetrated the UK market. This has positioned it to capitalize on the emerging opportunity in Europeon region. The name of the company was changed to its present name following the scheme of amalgamation with Cummins Infotech Limited.

Hold MphasiS Ltd.

Target :Rs 710
CM Price :Rs683.20

Result Highlights

• Operating Profit for Q4FY09 grew by 43.37% over Q4FY08.The EBDITA margin has shown a consistent growth quarter-on-quarter and stood at 27.97% for the Q4FY10. Consolidated net profit growth of 6.9% compared to the quarter ending 31 July 2009. Revenues for the same period grew by 2.4%.

• In Q1FY09, the Group added 16 new clients, 13 being from the HP channel. This was on expected line and has been fuelling the company topline and bottom-line growth. Going forward, we expect HP to add more clients to Mphasis stable.