Patni could trade in the range of 580: Sunil Shah

ET Now spoke to Sunil Shah, Director Equities, Indsec Securities & Finance Ltd, on his views on stocks.

ET Now: What's your call on Patni?

Sunil Shah: The event which has happened in terms of dividend distribution is really something which the market is really taking it in a very positive way. Some of the events, which happened in near past have been where people are actually doubting the cash in the balance sheet of IT companies and Patni, by giving this kind of dividend distribution is clearly setting a good trend.

At about Rs. 63 per share, the dividend outflow for the company's balance sheet will be to the extent of in excess of Rs 800 crores. Patni has a market cap of close to Rs 600 crores right now and Rs 800 crores of cash outflow from the books of the company will really be encouraging and looked by the market from a very positive angle. The run-up has also come in the stock but we believe that this could still continue in the near term and the stock could trade in the price range of about 580 thereabouts giving it a market cap of close to 6000 crores, so this is a very positive announcement and market is taking it in a very good stead.