Sify’s tremendous run continues
Sify Ltd. has been on a tremendous run since Raju Vegesna, through his firm Infinity Capital Ventures, bought a 40% stake in Sify Ltd. Check out the following chart which shows the tremendous Sify’s been on since the news about the Raju Vegesna buying a 40% stake in the company was released on 11/10/2005.
Courtesy: Bigcharts.com
Not only is Sify Ltd. not overvalued but it’s still fairly undervalued. Sify should have been in this price range even before the news came out. Sify got a fresh infusion of cash which increased its cash reserves to $62 Million and has zero debt. Sify and India are growing at a tremendous rate and the upside for this company is tremendous in the long term. If you are long-term investor than SIFY is a no-brainer. The only downside I see at this point is if Sify fails to show any profit when the fourth quarter numbers come out. However, if that does happen it will be a short term downtrend. However, if Sify does show profit there is no telling how high Sify will go.
I am eager to see the numbers come out for the fourth quarter. Leave me some comments on what you think about Sify’s future and your expectation for the 3rd quarter numbers. We can count on revenue growth to be good but will Sify show profit in the 3rd quarter?