Karvy Stock Broking Limited has maintained ‘Buy’ rating on Satyam stock with an intraday target of Rs 505.

According to Karvy, day traders can purchase the stock between Rs 487-490 with a strict stop loss of Rs 480. If the stock market remains on positive track, the next target for the day will be above Rs 510.

Shares of the company, on Tuesday (May 13), closed at Rs 495.95 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 862640. Current EPS and P/E stood at 25.57 and 19.48 respectively. The share price has seen a 52-week high of Rs 522.3 and a low of Rs 305 on BSE.

The outlook for the stock is really very strong, and it is expected to rise on the back of huge volumes.

Satyam Computer Services, on Tuesday (May 13), has created a new and unique streamlined solution for process manufacturing companies that generally take an annual or semi-annual plant maintenance shutdown.

Using Satyam`s solution, Priya Cement, the brand name of Rain Commodities, cut its plant shutdown time from 18 days to 13 days, enabling production of an additional 15,000 tons of cement and USD 1.6 million worth of sales.

Besides the work at Priya Cement, Satyam has utilized this solution to lessen shutdown times by 30% at Shree Cement resulting in production 24,000 tons of cement and is prepared to apply this solution to other industries such as Chemical Process, Petroleum Refining and Steel.  

The company has also reported a growth of over 100% in revenues to USD 28 million from the Middle East in fiscal year ending March 2008.

In the last fiscal year, the company experienced about 100% growth in the Middle East, with growth doubling in countries such as Kuwait and Bahrain. Qatar and the UAE also saw extensive growth. In terms of next year`s revenues, Satyam expects about 24-26% growth.

The Middle East, Africa, Asia Pacific and India region contribute 19% of global revenues. The Middle East alone contributes 1.5% of global revenues.

Moreover, the compensation committee of directors of Satyam Computer Services has allotted 374,869 equity shares via circular resolution on May 07, 2008, approved on May 08, 2008 under the company’s stock option plans.

Following the allotment, the company’s paid up share capital has climbed up from 670,997,572 equity shares of Rs 2 each aggregating Rs 1,341,995,144.00 to 671,372,441 equity shares of Rs 2 each aggregating Rs 1,342,744,882.00.

Other stocks from the same sector that looks good for short-term trading includes Infosys, TCS, Wipro and HCL Tech.