Tech Mahindra rockets on multi-million dollar deal buzz

Tech Mahindra soared 7.52% to Rs 847.85 on BSE after the company reportedly signed a multi-million dollar deal with Botswana Telecommunications to provide stem integration services across its mobile, internet and fixed-line businesses.

On BSE, 93,728 shares were traded in the counter. The scrip had an average daily volume of one-lakh shares in the past one quarter.

The stock hit a high of Rs 858.80 and a low of Rs 781 so far during the day. The stock shad a 52-week high of Rs 1562.70 on 6 June 2007 and the stock hit a 52-week low of Rs 614.80 on 17 March 2008.

The mid-cap firm had underperformed the market over the past one month till 4 June 2008, declining 16.41% compared to the Sensex's decline of 10.70%. It had outperformed the market in the past one quarter, gaining 17.40% compared to Sensex's decline of 6.21%.

The company's current equity is Rs 121.52 crore. Face value per share is Rs 10.

As per reports, Tech mahindra is eyeing revenue of up to $10 million over the next 3-5 years from this deal, and around $2 million in the first year of the deal. Botswana Telecommunications Corporation (BTC) is wholly-owned by the Botswana government and operates the country's national and international telecommunications services.

Tech Mahindra reported a net loss of Rs 207 crore in Q4 March 2008 as against a net profit of Rs 196.40 crore in Q3 December 2007. Net sales rose 8.68% to Rs 990.7 crore in Q4 March 2008 over Q3 December 2007.

The company provides information technology (IT) services and solutions to the telecom sector. It provides a variety of services ranging from IT strategy and consulting to system integration, design, application development, implementation, maintenance and product engineering.