CLSA cuts Satyam's price target to Rs 25

MUMBAI: CLSA has slashed its price target for Satyam Computer to Rs 25 after the revelation of the company's accounting fraud. The foreign brokerage said calculating the company's book value has become meaningless, with "cash out and asset/debtors unknown or uncertain"

"A different approach could be that the business, or some part of the business, is real," Bhavtosh Vajpayee, and Nimish Joshi said in a report to clients, just after the confession.

The analysts say that the scheduled meeting on January 10th to consider a share buyback has become irrelevant.

"When there is no cash, how can there be a buy back? And where did the cash go? Only an investigation can tell," they said. In a BSE announcement, outgoing chairman Ramalinga Raju said Satyam overstated cash assets of Rs50.4 billion out of reported Rs53.6bn cash assets are "inflated or non-existent".