Prithvi

Snippets from research reports/ mails in Bharat's gr8 group
Err.
google for it.
Select group. high quality reports.

# Prithvi Information Solutions (Prithvi) posted results considerably above expectations on the revenue growth front (26% qoq), but was slightly below expectation on PAT at 11% qoq. The profitability was impacted due to salary increases to its onsite staff in this quarter and a higher than expected forex impact on account of translation losses.
# For FY07 the company’s performance was a strong growth of 68% in revenues, 100% growth in EBITDA and inspite of the forex hit in this year, the company posted profitability growth inline with revenues at 69% yoy.
# We expect the company to post organic revenue CAGR of 25.7% over FY08-FY09E and a PAT CAGR of 26.6% over the same period. We reiterate our Buy recommendation with a revised 12-month target price of Rs.445, at an P/E of 8x FY08E fully diluted earnings, considering FCCB dilution). We believe the stock is the cheapest available IT stock and has considerable scope for a PE re-ating, as the company continues to perform.

PBL
"
Result Snapshot
Prithvi Information’s Q4 revenue, at Rs 2,592m, rose 30% qoq and beat our
estimates. However, at the EBITDA and PAT level, the company has once
again disappointed the street, as its margins slipped 130bp and 170bp
respectively.
The EBITDA margin declined due to the hike in salaries whereas the lower
PAT margins stemmed from the increase in loss on account of rupee
appreciation.
Maintain a long-term BUY, with a price target of Rs 514 (6x FY08E earnings)."

AngelBroking
"Outlook and Valuations
Prithvi has out-performed our FY2007 topline estimates by a decent 6.3%, while on the
bottomline front, the out-performance has been to the tune of 2.4%. On the EBITDA
margins front, the performance has been spot-on, with eventual margins just 2bps lower
than our estimates.
The management has declared an interim dividend of 20% (Rs 2 per share), giving a
dividend yield of 0.7%. Going forward, we expect Prithvi to record a CAGR of 27.5% in
topline between FY2007 and FY2009, while the CAGR in bottomline is expected to come in
at 30.8%, mainly on account of margin expansion of around 50bps each year during this
period.
At the CMP, the stock trades at a P/E of 4.3x FY2009E fully diluted EPS, making it one of
the cheapest stocks in the entire IT sector. We maintain a BUY on the stock, with a 12-
month target price of Rs 485."



I bought hexaware like crazy in fy05 when I started investing
I had something like 1000 shares of hexaware near 450 :), sold near 600 got out wayyyy too early (thats like 120 current prices)

Now I have almost 1000 of prithvi.
I love this counter.
Of course rupee appreciation risks ladeda
rupee could go to 36.
the profits of the company would also drop by 20% or so.
Even then lets say instead of next year eps of 55 we get only eps of 40 (30% below estimates)
still 1 year target of 400 at 10x earnings considering u have to pay 15x fy08 for other midcap IT RIGHT NOW...
OTHER MIDCAP IT ARE SITTING AT TARGET PRICES
U know why?? whatever is in fashion, whatever has already been discovered is usually fairly priced or over priced.
You need to find the next big story if you want to make mega bucks in investing.
Bought more ON DIP to 290 which is my value zone based on 50% retracement of last swing.
NOT ON BREAKOUT @ 304+ or 320 (thats where i booked partial intraday profits last time)
Prithvi has exposure to the U.S. any significant slow down could impact the stock adversely. Future plans include inorganic growth+increasing offshoring+europe etc.
Sounds good to me.

For those who don't understand why prithvi is available at such cheap rates??
repeat after me
market is crazy
market is crazy
market is crazy
market is crazy
(other possibility is market is actually smart??? fccb, massive equity dilution and what not.. but then all these research reports are crazy.. take your pick)
"angel broking:Prithvi made an issue of zero coupon foreign currency convertible bonds (FCCBs) of US$
50mn to Lehman Brothers Europe, London at a conversion price of Rs 469.13 per share
(conversion rate of Rs 44.09 per US$ taken). The bonds are due for redemption in 2012
and will be listed on the Singapore Stock Exchange. The proceeds of the FCCB will mainly
be utilized for the purpose of acquisitions. It should be noted that Prithvi has already
identified companies for acquisition and it is in the final few stages of closure. The
management expects to make an announcement on this during the current quarter. The
equity dilution on account of the FCCB conversion will be to the tune of around 26%."


ambit capital
"Attractive valuations
Valuations at P/E of 5.4x FY07E and 5.3x FY08E earnings are at a discount of
nearly 55% to mid cap sector average multiples on FY08E basis. On other
parameters too at EV/Sales of 0.7x and P/BV of 1.3x FY07E earnings the stock
is relatively undervalued. We see significant room for a re-rating on this count
as the company continues to perform.
The company’s raising a $50mn FCCB convertible at Rs.469, a premium of
greater than 40% on the date of issue, lends further confidence to our
discounted valuation argument.
High cash per share of Rs.123 on fully diluted equity considering FCCB dilution
further provides cushion to our valuation.
We initiate coverage on the stock with a BUY with a 12-month target price of
Rs.426 at a P/E of 8x FY08E earnings. We see possible upsides to our target
price on account of inorganic growth triggers or higher than anticipated revenue
growth."





the average person has an IQ of 100
the average IQ of a crowd is 50.....
A mob is dumber than its individual components.
Much dumber.
Reminds me of a game kids used to play in middle school in Delhi.
WWF Royal rumble. Kids in our class would just beat someone up for no good reason. Nothing serious just mild punching/kicking.

The only way to save yourself?? Point the crowd to someone else. If the crowd finds someone else to beat up before you start getting bashed you are safe.

Prithvi check shareholding pattern.
The fii/mf holding is still damn low.
aftekinfosys was the same way near 56... Then it hit 84-90 on one fine day in 2006 and morgan stanely was buying at 80.
This was well after the buy call was given. Not even my call exactly, it was a valuenotes call. I just forwarded technical levels.

Is morgan stanley stupid?? Nope they are also investing for the future they will get 160 if they hold for 2-3 years , especially if 20-30% cagr continues.

So buyyyyyy
prithvi/aftek, prithvi/aftek
Don't go buying 3iinfo for p.e of 27x fy08 and 20xfy09
WHY DO YOU WANT TO PAY 15-20x FY09??
P.S 3iinfo was a crash buy call near 210 target 320.

ALREADY DONE a 1 year target in few months.. geez. crazy markets. why?? because stock has a bigger fan following. thats all.
Some people actually think they are smart if they pay higher p.e
The pretend they are buying growth (which they are 3iinfo growth rate expected is almost 40% cagr for 2 years)
But seriously, same returns are also available at much lower p.e. in aftek/prithvi.

p.e.g is what counts.

Why buy 3iinfo @10x fy09? When you can get prithvi for 4x fy09??

U know why i stick with market is crazy theory???
Rolta was selling at 80-100 in 2005..
p.e of only 5-8x :)
and p.e.g of 0.25

Look AT IT NOW....