Are Rediff Valuations Justified? Can Sify Management Deliver?

After Rediff.com posted pretty impressive results this quarter – a net income of $1.98 million over revenues of $5.78 million – the stock had run up 17 per cent. The leading Indian internet company has now a marketcap of $380 million and a PE of 128.27. Himanshu Pandya asks here if the price is still justified? It’s a perennial question.
In another post, Pandya analyses the Sify‘s top management changes and whether it augurs well for the company. He says the company’s new “international focus” is a good sign.

As a Sify stock holder I can’t tell you how happy I am with the change at the top. I am not sure how Raju Vegesna is going to do in his new CEO role but I am willing to give him a chance. The best thing I heard from the conference call was hearing Raju Vegesna say that they are going to focus internationally. If they can grow internationally we can all expect Sify to grow at a much higher rate. Most of the Indian IT companies are making money internationally since technology in India is still at a very early stage. The number of Internet users in India is miniscule so Sify needs to focus on generating revenues internationally while it awaits the Indian Internet market to grow.

A good point made.
Related:
Rediff Q1 Results: Revenues Grew 37% To $5.78 Million; Net Profit Zooms To $1.98 Million
Ramaraj Quits at Sify; Vegesna Becomes CEO

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