Sasken Technologies Embarks On ‘5x5 Vision’; Stock Surges To 10-Year High
Sasken stock surges 10 percent, currently trading at 2007 highs.
Sasken Technologies Ltd. rose to a 10-year high after the management said they will expand their focus beyond the core communications business.
The company identified potential growth areas and built newer skill sets for the future in the financial year 2016-17, Chief Executive Officer and Managing Director Rajiv Mody said in the firm’s annual report.
The Bengaluru-based firm outlined a “5x5 vision” to achieve sustainable growth over the next five years. The focus areas will be:
- Automotive electronics
- Semiconductors
- Communications
- Industrial automation
- Consumer segments
Here are the other highlights from Sasken Technologies’ new strategy:
- Cater to customers in various high growth industries.
- Create a growth oriented and agile organisation.
- Position as "chip to cognitive" company.
- Work on cutting edge technology in the industrial automation space.
The proposed visa regulations in the U.S. and Brexit will not have a significant impact on operations, Sasken added.
More Upside?
The Saksen Technologies stock has the potential to deliver huge upside, due to valuations, strong balance sheet and cash on books, boutique research firm Prospero Tree wrote in a note to clients. Non-participation of promoters and large shareholders in the recently completed buyback is an indication of the belief they have in the company, the research firm added.
The stock surged as much as 12.89 percent to Rs 466.85, its highest level since July 2007.
