India Inc Pledges Over $70 Billion for PM Modi's Digital India Push.
Sky is the limit for SIFY
If you look back 10 years from now, SIFY investment like Blue chip company here. Don't regret it.
Invest now and keep it for 10+ years for good returns.
Have a look at TECH MAHINDRA shares in India. time to load up I think after the beating it got. for long term as well as short to medium term.
You miss the point and the root of this stocks real problem. It's not related to the business directly which I've always thought would do fine but it's the ownership structure with the principal owning a total of 85% of the stock and about 70% in private non traded shares bought at a huge discount to market. That's why institutions bailed they figured out very quickly he was up to no good, he will likely buy back the remaining shares he doesn't yet own again for market or less. You can't sue him in India!
India these days is considered the fastest growing Emerging MKT with a pro business climate and what seems to be a more fiscally responsible climate with regards to government. This seems to be reflected in their currency. The Rupee could get stronger vs the dollar would that help the cause here
The final part of your post is the very reason why institutions haven't returned and won't. Although it's not further dilution that's the concern but the probability of the ADRs being bought back cheaply prior to an Indian IPO.That's been the dark cloud hanging over this stock and why its done nothing for four years while the numbers keep getting better and after $80m spent on the build out.
You may be right about that but if they continue to grow and pay a dividend it may bring some institutional investors back. the big thing for me is the continued growth if it decelerates and they cant get any earnings acceleration even with the dividend I don't see the mkt cap expanding much and then there's always the danger of another share offering or preferred share offering to muck things up
Wrong India's biggest customers for these services are in Europe and with a weaker euro contracts have been re negotiated and revenue growth at the big four TATA WIPRO INFOSYS and HCL has dropped by over 40% in the last year. Most of their other customers are in the Middle East where oil woes have crushed margins and things are forecast to get worse in both area's. And all four are trading at high multiples as well. So SIFY is likely to start having problems too, customers are in the same area's and competition is fierce.
Situation is changed in India and in the world.
India is growing very fast and SIFY is a cloud data company who has a bright future.
The company has a great future, ADR holders don't since they won't participate, Raju will take private before Indian IPO or sale. Institutions and smart money figured that out four years ago and bailed otherwise it would likely be at $5 or much higher now.
I won't be surprised if it hits $10+ in next couple of years, huge return.
India is a got growth market for their services, profitable, expanding to North America and Europe which will give very high margin.
They are putting their own money and discount was something to do with their earlier much higher investment. Patience will bring HUGE reward.
And yet despite this growth and a second annual dividend being declared the shares are down 30% in the last twelve months and the institutional ownership remains at near zero. Shares were at $8.50 four years ago prior to an $80 million dollar infusion of cash and the build out of the data centers. and institutional ownership was at about 35%. Think it might have something to do the issuance of another 120 million privately held shares issued to himself at a huge discount to market? Think that might be an issue????
Rough forecast... (do your own research)
Recent quarter earnings = $57 million
Annualized = $228
growth = 37%
Next year prediction = $228 * 30% (conservative) = $296
multiples of 3 * $296 = $888
approx share count of 180 million, $888/180 = $4.90 per share
current share price = $1.35
potential return of 260% in 12 to 18 months
Sentiment: Strong Buy