Notes on Indian equities, sectors and economy

Posts Tagged ‘Technology’

Arvind Rao’s greek tragedy at Onmobile

Posted by fairval on August 3, 2012

Great article in Forbes India explaining what went wrong with Onmobile. Really tragic, since it all started with honest intentions..Rao borrowed money to buy his own stock, and got caught in a debt spiral.. (Great job, IG and team)

Why Arvind Rao and OnMobile went down a dark road


On November 23, 2010, Arvind Rao, the 53-year-old co-founder and CEO of OnMobile, bought approximately 6 lakh shares of his company from the open market, representing a little over 1% of the company’s total shares. Rao already owned over 10% of the company’s shares. At Rs 277 a share, he had to pony up nearly Rs 16.5 crore to acquire them.

He went ahead and borrowed money to buy the shares, thinking nothing of the interest it entailed or the fact that he’d need to put up nearly half his existing shareholding as collateral. That would turn out to be the worst decision he ever made…


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And we got Zensar right..

Posted by fairval on July 18, 2012

Thankfully, we dont track Infy, otherwise we could have been in the 9 out of 10 bracket.

We did do a report on Zensar on 23 Aug 11, at a price of Rs 127. At that time, we put a target price of Rs 230 for Mar’13, 80% upside in absolute terms. A high target price like this is not the practice in the broking industry. We raised the target price to Rs 275 in Feb’12, when the market price was Rs 168.

The stock hit a high of Rs 279 a few days ago. Just today saw a report by Religare, with a target price of Rs 350 for Marc’13.

So this was a bit of self promotion, but we had the only report on Zensar in 2011. So analysts in the case of Zensar were 100% correct (1 out of 1!)

Posted in Stock Ideas, Technology | Tagged: , , , | Leave a Comment »

Infosys’s earnings track record: Always Ahead

Posted by fairval on October 19, 2006

The above is a great chart done by a colleague. It has an incredible 26 quarters of data comparing Infosys’s actual net profit growth versus consensus estimates. What it shows is that Infy has beat expectations every time. On aroune 12 of the 26 quarters, it has beat expectations by over 10%. This is clearly without parallel in Indian business.
This may also mean Infy is quite adept at keeping expectations low

Posted in Markets, Technology | Tagged: , , , , , | Leave a Comment »