June 16, 2001
BFL has performed well in the last fiscal, bringing the company
back on track, reports CNBC India. The stock was in the news after
Chrysalis Capital signed a $10 million deal to pick up a 7-8% stake
in MphasiS BFL.
deal was struck at Rs. 350 a share.
Speaking on venture capitalist investment in a
listed stock, Alroy Lobo of Kotak Securities told CNBC India that
in such cases it was typical of a VC to look at the company's performance
in the longer term. MphasiS' client profile suggests good opportunities
in the longer term, keeping in mind the relationships being built
by the company with its clients. This, he said, is valuable from
the point of view of the investor.
Dutt of Quantum Securities said that given the stable business that
was coming MphasiS' way, it is a profitable investment. However,
he added that the company's stock might witness a slight weakness
due to the revenue warning issued by it.
issued a revenue warning regarding its target of $100 million on
Friday. MphasiS said it might now earn revenues of $80-85 million.
down was based on the Q1 performance. MphasiS is however hopeful
of maintaining the gross margins despite lower revenue numbers.