SIFY vs. REDF – India’s Two Internet Heavyweights

As I promised in an earlier article, I am finally comparing SIFY Ltd (NASDAQ: SIFY) and Rediff.com India Limited (NASDAQ: REDF). You can see the numbers for yourselves and figure out which is the right investment for you. Rediff is close to a pure portal play whereas Sify is involved in the overall internet sector. So here it is:

SIFY vs. REDF (Source: Yahoo! Finance)
As you can see, Sify has 5 times the revenue of Redf but 1/2 the Market Cap. To be fair to Rediff, it dominates the Portals between the two. However, Sify is coming strong with the launch of SifyMax.com and now its entry into the local portal market with launch of Bangalorelive.in. Check out my last article for more on Sify’s local ambitions. I broke this story and I am still waiting on Sify to announce this officially through a press release.

Anyways, you can compare the two stocks and although long term they should both payoff I wouldn’t touch Redf at these levels. Sify is still way undervalued while Rediff is way overvalued. I wouldn’t mind Rediff in the teens for a long term investment. Although, in a growing market like India, Rediff at these levels wouldn’t hurt either if you are thinking really long term.

So to conclude, Sify Ltd. is a Strong buy at these levels and Rediff is a buy in the teens.

Your thoughts? No registration required for comments.

Share This

Related Articles