SIFY Trading at 22 times last year earnings - Pull back to me only reflects a Buying Opportunity
I happen to agree with Motley statement (see below) and due to the pps price pull back this stock appears primed for significant growth and their earnings where impressive.
Motly article stated Statement: "It's worth noting Sify stock also experienced a massive 32% run up in the three trading days prior to this earnings release, so today's pullback simply brings shares back to their week-ago levels as investors take their quick profits. As it stands, though, I've got to applaud Sify's solid turn into the black as it benefits from increased IT spending in India's fast-growing economy. If the company can maintain this momentum going forward, and with shares trading at a reasonable 22 times last year's earnings, patient long-term shareholders who can stomach the volatility could be rewarded down the road".
Now that SIFY has turned the corner and reported profitability with a very significant postive earnings quarter another repeat can have exposive potentitial to the pps. The noted internet sector has been explosive I would say that this stock in this Sector could lead in 2014 some stocks saw 2 to 3X pps growth this year.
I like to here some of the board members thoughts I am new to this stock and perfirming my own due diligence!
Internet may after all be more addictive than alcohol, at least in India, where more than two thirds - 71% - of those who participated in a survey by global management consultancy firm Boston Consulting Group (BCG), is willing to let go of alcohol for internet access.
About 64% would sacrifice chocolate for internet access.
Such user interest and participation is driving the India's socalled Internet industry to Rs 10.8 trillion by 2016 or about to 5.6% to the country's gross domestic product (GDP). This compares to about Rs 3.2 trillion in 2010 or about 4.1% of the GDP.
If the Internet industry was counted as a separate sector, it would be eighth largest in Indian economy - larger than mining and utilities - according to BCG's latest report, The $4.2 Trillion Opportunity: The Internet Economy in G-20.
To be sure, BCG counts India's IT services exports as part of the internet economy, constituting the largest chunk - about 59% - while actual internet consumption makes up only 20% of the sector.
Growing at 23% annually, India's internet economy is the second fastest growing one in G20 countries, ahead of Russia and Mexico.
"Consumption is the principal driver of Internet GDP in most countries, typically representing more than 50% of the total in 2010. It will remain the largest single driver through 2016," said Arvind Subramanian, a partner at BCG.
By 2015, based on existing projections, India, which with 120 million users has the third largest Internet user base in the world, is projected to hit 350 million, catapulting it to a global ranking of 2, with the fastest rate of growth.
Right now the shorts and manipulators are in control over here but their days are numbered if the company remains profitable.
In my opinion is a potential to have a 7-8 bagger on this stock in less than 2 years if the Indian economy gonna recover.