Satyam to focus on embedded software - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Satyam to focus on embedded software

Feb 10, 2000

Satyam Computer has decided to focus on software for embedded systems, telecom and telephony applications. The company has been successful in making a smooth transition from being a major Y2K service provider (which contributed 30% of their revenues in FY99) to focus on e–commerce (which now contributes 11% of its revenues), software applications (54%) and solutions (35%).

This segment is the fastest growing segment since the embedded systems are used in a wide variety of industries including power utilities, power equipment, banking, telecom and airlines. However, the company could possibly have to choose its areas of specialisation/vertical domain where it will operate. With physical infrastructure especially telecom and power set to get a big boost if Satyam can make a breakthrough, it could change the trajectory of the company’s operations.

As it is the company has already bagged orders worth $ 120 million which have to be implemented within a year. Thus it does have a cushion of the existing business doing well and its attempts in focusing on a new line of business seem sincere and not merely a ploy to transfer existing employees to a new task.

Market view:
Analysts have rated Satyam as a ‘buy’ primarily for two reasons. One, because of the company’s depth in the vertical business domains of banking and insurance services as well as telecom and engineering services. Secondly, the subsidiary/JV model of Satyam has paid off (for instance Satyam holds 60% of Satyam Infoway) and there are other subsidiary/JV companies, which can be listed/sold.

Equitymaster requests your view! Post a comment on "Satyam to focus on embedded software". Click here!


More Views on News

Why Subex Shares Rallied 32% in the Last Two Sessions? (Company Info)

Apr 22, 2021

Share price of the company witnessed upward rally in the last trading session even as share markets remained volatile.

More Views on News

Most Popular

India: Recovery Stalled by Vaccine Games? (The Honest Truth)

Apr 13, 2021

Ajit Dayal on how India's vaccine strategy will impact the markets.

Top 3 Nifty ETFs to Buy Now (Fast Profits Daily)

Apr 20, 2021

In this video I tell you the three Nifty ETFs I think are the best.

A Stock with 700% Return Potential Comes with Additional Payoffs (Profit Hunter)

Apr 15, 2021

Narayana Murthy was one of the first unicorn founders to get the backing of this entity...

11x Bankruptcy to Bluechip Stock: A Rare India Revival Story (Profit Hunter)

Apr 16, 2021

There is no stopping this 11-bagger stock from significant upside.

Why Did the Market Crash on Monday? (Fast Profits Daily)

Apr 13, 2021

In this video, I'll you what I think is the real reason behind yesterday's market crash.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Jul 3, 2013 (Close)


  • Track your investment in MAHINDRA SATYAM with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks