After previous close at Rs 160.60, Stayam Computer Services is currently trading Rs 12 up at Rs 172.60 i.e. 7.47% up at BSE on Dec 31 at 12:01 pm.

The stock closed at Rs 160.70 yesterday (Dec 30), but it is currently trading Rs 12.25 up at 172.95 i.e. 7.62% up at NSE on Dec 31 at 12:11 pm.

The stock still has great potential to go up. It is advised to hold the stock.

Portfolio Manager, PN Vijay said reckons that above Rs 205, Satyam can touch Rs 217.

According to him, if the stock touches Rs 185-190, from there the next target would be something like Rs 197 to Rs 205 and above that it may even scale upto Rs 215.

Satyam Computer is understood to have caught the attention of private equity investors, rival IT companies and other IIs (Institutional investors) that are considering the IT major as a possible takeover target with smart valuations.

Mr. Vijay said, “Hold on to Satyam because it was beaten out of shape by FII (Foreign Institutional Investor) anger after the Maytas development. Maytas as an event is out of the way, the management has gone and said sorry to everybody and so Satyam is old Satyam. I do not give much credence to World Bank news; many companies get blacklisted by World Bank all the time. If that is so the big overhang on Satyam is gone and then of course we had the big IL&FS’ world making margin sales, so that also appears to be out of the way.”

“Slowly Satyam has to inch back to a reasonable DCF (Discounted Cash Flow) type of valuation, which would be anywhere around Rs 220-230 or so. So what’s the problem? I do not expect Mr. Raju to go away; he is an old hand. Mr. Ambani, Mr. Tata has never gone away they all had problems. Mr. Raju will stay on and probably outlive you and me. So I think Satyam in a natural course and with short covering coming in should go a bit higher,” he added.