powerfulpicks stock opinion: 3IINFOTECH's main problems have been very high debt burden and its comparatively slower growth of revenues. It recently carried out private QIP placements and with the money they raised, they paid off some debt. They also restructured some of the loans and performed internal consolidations to improve the balance sheet. The company has a good growth potential, but since the July 2010 results were below the expectation of the market, it slipped to around 61-62. It will take some time for the company to produce results in line with or exceeding the market expectations.
3IINFOTECH is thus a HOLD for now. The script has strong support at 58 and will not normally breach this level. One has to wait for a few quarters for the effect of the above mentioned measures to become visible and also for the company to better their revenue and bottom line. You will know this is happening, if it inches past 66. If it crosses 66, the next targets are 78 and 82.
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