India.FinancialNirvana.com » Patni

Goldman Sachs initiates coverage on all four Indian IT companies

Himanshu Pandya — Fri, 25 Aug 2006 03:16:27 +0000

Goldman Sachs recently initiated coverage on all four Indian IT firms listed in the United States.

Infosys Technologies (Nasdaq: INFY) – ‘Neutral’
Wipro (NYSE: WIT) – ‘Neutral’
Satyam (NYSE: SAY) – ‘Buy’
Patni Computer Systems (NYSE: PTI) – ‘Sell’

Patni upgraded! Shows signs of life

Himanshu Pandya — Wed, 02 Aug 2006 01:57:15 +0000

S&P upgraded Patni (NYSE: PTI) to a ‘Hold’ from ‘Sell’ after it released its Q2 earnings today. S&P analyst Dylan Cathers, “We are raising our 2006 earnings per ADS estimate by 12 cents to 98 cents, and our 12-month target price by $6 to $17″.

Finally some signs of life for Patni Computer Systems.

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Patni technically looking weak

Rahul Rathi — Tue, 11 Jul 2006 13:00:04 +0000

MoneyControl: Technical Analyst, Vijay Bhambwani is of the view that one should exit Patni Computer Systems (NYSE: PTI) once it breaches Rs. 300 on the downside. He says on the upside, Rs. 360 is stiff resistance. Vijay is bullish on Infosys, Satyam and TCS.

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Patni Computer to restate results due to a tax charge

Rahul Rathi — Wed, 05 Jul 2006 04:03:33 +0000

IndiaTimes: Due to a tax review which would entail additional tax liabilities of $23 million to $33 million, Patni computer (Nyse: PTI) will restate its result for 2003 and 2004

The company will make provision for additional tax and other related liabilities in its unaudited financial statement for the quarter ended June 30, 2006. Patni by the way continues to underperform since its listing on the NYSE.

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Patni Acquires US-Based ZAiQ Technologies

Rahul Rathi — Tue, 04 Jul 2006 16:08:11 +0000

PressRelease: Patni computer (Nyse: PTI) also seems to be using the acquisition route to grow. This time its acquired ZAiQ Technolgies, a design and verification company, in Woburn, Mass. With this acquisition, Patniï¿½s product engineering service becomes stronger by addition of ASIC design, verification and validation expertise.

Patni is already in Product engineering services, but now it seems they want to strengthen their hold and get a bigger pie in terms of revenue from this sector. According to a NASSCOM 2006 strategic survey report, Indian IT and ITES export revenues from engineering, R&D and offshore product development have grown tenfold from $300 million in 2001-2002 to over $3.1 billion in FY 2004- 05, and are projected to reach $3.9 billion by the end of fiscal year 2005- 2006.

Patni wants to make sure it is at least among the top 3 in this sector. Through the transaction, Patni obtains ZAiQ’s Application-Specific Integrated Circuit (ASIC) design capabilities and Intellectual Property (IP), as well as expertise in Field-Programmable Gate Arrays (FPGA) and System-on-a- Chip (SoC) technologies.

I like this deal for Patni, and all we can say is that, Patni is walking in the footsteps of Infosys towards becoming a future EDS or Accenture. All these Indian software companies are working on a similar plan and taking inspiration from the success of Infosys and TCS, they first develop in-house expertise and then go on global expedition to acquire the expertise which they lack thus becoming a software company where you can get all your service from integration, development, implementation, maintenance to outsourcing done by a single company. These companies have every bit of advantage over their western counterparts be it cost, quality, skilled manpower, and time zone difference. The future belongs to these companies and anyone betting on software should have atleast one of these companies in their portfolio, because these are the future leaders and its better to catch them young and watch them grow. By the way Infosys (Nasdaq: INFY) is easily the best of breed.

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Patni Computer Systems forms Strategic Alliance With Clear Technology

Himanshu Pandya — Thu, 29 Jun 2006 10:30:55 +0000

Press Release: Patni Computer Systems, Ltd., a global IT services provider, announced today that it has formed a strategic alliance with Clear Technology, Inc., a leading global software solutions company serving the insurance, financial services and healthcare industries. Under the terms of the agreement, Patni will provide worldwide process consulting and system integration services for Clear Technology’s insurance and financial services solutions.

Patni seems like is making a strategic alliance with a lot of companies lately. The stock is really struggling so why not

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Eagle Investment Systems partners with Patni

Rahul Rathi — Mon, 26 Jun 2006 02:37:13 +0000

Finextra: Eagle Investment System LLC and Patni Computer Systems (NYSE: PTI) today entered into a strategic alliance. Due to rising competition and also to tap the growing business opportunities both the companies feel this alliance will be beneficial to both of them. They will focus to provide leading spectrum of services and better economic advantage to investment management community and also to tap the vast opportunities it offers with the help of leveraged position they have now with this alliance

On a longer-term basis, I continue to prefer the top-tier plays in the software sector, due to their significantly higher scalability, strong track record, more de-risked revenue profile and breadth of offerings. For me Infosys Technologies (Nasdaq: INFY) is the top pick in the software sector.

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Patni keeps heading lower after lackluster earnings and downgrades

Himanshu Pandya — Tue, 02 May 2006 02:26:59 +0000

Patni Computer Systems (NYSE: PTI) continues to drift lower after recent lackluster earnings and back to back downgrades from Goldman Sachs and Jeffries & Co.

- Goldman Sachs downgraded the stock from ‘In-Line’ to ‘Underperform’

- Jeffries & Co. downgraded the stock from ‘Buy’ to ‘Hold’

Patni Computer Systems has severely underperformed since its IPO.

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Coverage initiated on Patni with a Buy

Himanshu Pandya — Wed, 19 Apr 2006 02:12:52 +0000

KeyBanc Capital Mkts / McDonald today initiated coverage on Patni Computer System Ltd. (NYSE: PTI) with a Buy. The stock has recovered from its recent 52-week low but is still underperfoming since its recent IPO. Perhaps the street is expecting good results after the impressive earnings and outlook from Infosys Technologies Ltd. (NASDAQ: INFY).

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Patni (NYSE: PTI) in hiring and acquisition mode

Himanshu Pandya — Thu, 06 Apr 2006 03:38:20 +0000

Economic Times: Patni Computer System Ltd. (NYSE: PTI) plans to raise its headcount by 4000 this year and will be looking for mergers and acquisitions. According to Executive Vice-President Mrinal Sattawala, Patni would like to acquire companies whose revenues are roughly 10 per cent of Patni revenues which will be in the $45-50 million revenue range. He further added that Patni was looking at opportunities in life sciences, retail and other verticals. Patni has $120 million in cash which would be leveraged for acquisitions.

Patni is at its 52 week low of $20 and has underperformed since its IPO and listing on the NYSE.

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