Goldman starts Tech Mahindra, Satyam with 'buy' ratings

Last Updated: Thu, Mar 28, 2013 07:34 hrs

Tech Mahindra Ltd shares gain over 2 percent and Satyam Computer Services Ltd rises around 1 percent after Goldman Sachs initiates coverage of both companies with "buy" ratings.

Goldman says the planned merger between the two companies would create the fifth largest Indian IT offshoring company by revenue, offering "adequate scale to target potential big-ticket deals."

The investment bank adds a merged Tech Mahindra-Satyam company would see good revenue growth and better expense management, while providing higher cash returns to investors.

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