CMC ltdCMP: 825 Target Price:925, Return Expected after brokerage(Buy/Sell) 10%

CMC ltd
CMP: 825 Target Price:925, Return Expected after brokerage(Buy/Sell) 10%
Buy Price range:725-750.Company started in year 1975.

2004,The Company undertook a major restructuring exercise to give focus to the main line of activities. Five Strategic Business Units viz. Customer Services, System Integration, International, Education & Training and Indonet have been formed.In year 2004, Govt. of India offloads its remaining equity in CMC Ltd. by selling 3.98 million shares through public issue at a price of Rs 485 per share .Tata Sons has transferred its entire 51.12 per cent equity stake in CMC to group company Tata Consultancy services (TCS) for Rs 380 crore at Rs 490.5 a share. CMC Limited has launched a new training programme called EDGE - Essential Diploma for Graduate Engineer, a placement-oriented training programme catering to requirements of both IT companies and job aspirants . EMC Corporation has appointed CMC as its systems integrator partner and provider of IT services to offer information storage solutions in the Indian market

Key Financial Highlights: Year-on Year basis- Mar’09 Audited
Sales gwth: -16%,
Net profit margin: 12%
Book Value Inclusive reserves: 252
Return on Net worth: 24%
Dividend %:150% =Rs15 in for 2009

Qtr-Qtr Basis: Jun’09 compared to Jun’08
Sales gwth: -14%,
Operating margin: 16.89% (up by 61bp)
Net profit margin: 14.97% (up by 69bp)
Sales down from 255 to 173 (32%down)
Net profit was up from 25 to 26 (16bp)

Face Value: 10,
Group B,
Industry type: Software.

Do visit company website for more info.

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