Sify’s time has arrived!
For a long time Sify Ltd. (NASDAQ: SIFY) has been the most overlooked stock in the Indian Sector. Sify Ltd. has been growing at a very good rate and expanding in various sectors. The market cap is very low compared to the revenue it generates, especially when compared to Rediff (Rediff.com India Limited). Rediff (NASDAQ: REDF) has recently taken off due to its recent profitability. However, no matter what I say about Sify Ltd. being overlooked, the main reason is Sify is still not profitable. Management has disappointed the shareholders quarter after quarter. You could have felt the heat on management in the most recent 2nd quarter conference call. Shareholders want the management to focus more on portals rather that ISP services. On top of this, couple of big Institutional investor’s also unloading stocks kept the stock down as well. Both these institutional investors are done selling now.
However, everything changed on 11/10/2005 with Raju Vegesna buying a 31.61% stake from Satyam Computer (NASDAQ: SAY). Raju Vegesna has also been named the Chairman. This is great opportunity to get into Sify now because its very close to profitability and all the media hype it will get. I like the following statement from the press release: Mr. Vegesna further noted that, Sify’s existing core businesses provide a strong platform for future growth both organically and through possible acquisitions growth that I hope to help enable with, among other things, the infusion of Rs 1721 Million in new capital, strategic inputs and assistance in developing alliances with other innovators in this space. Among other things, these contributions should help Sify leverage its expertise and experience into new business opportunities by supporting the company’s efforts to expand its international operations. We still don’t know how Raju Vegesna has in mind for Sify but at this point anything is better that what we have seen in the past.
I really like SifyMax which is India’s first Broadband portal. They have done a tremendous job with it. Check it out at http://sifymax.com. The Video cricket scoreboard is also incredible and is creating a lot of buzz. I recently got a forwarded email from a friend raving about it.
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