The Central Bureau of Investigation (CBI) has sprung into action yet again and this time it could spell serious worry for Mahanagar Telephone Nigam Limited (MTNL) and IT giant HCL. The bureau has registered a case against MTNL and HCL Infosystems officers for alleged irregularities in awarding work of broadcast networks.
The officials have been alleged of discrepancies undertaken during CWG-2010 for pricing an exorbitant price of about Rs 570 crore for broadcast networks by manipulating the specification. The CBI is now investigating the contract between MTNL and HCL Infosystems. It alleges that MTNL awarded the contract to HCL Info at an inflated price of Rs 570 crore while the initial estimate stood at Rs 31 crore.
On the repercussions of the probe, Royal Bank of Scotland says that HCL Info stock is likely to tumble. “The probe will have a negative impact on the company and the stock will remain under pressure until more clarity emerges,” the bank stated.
RBS has a hold rating on the stock with a target price of Rs 112 per share.
source-moneycontrol
Stevenson
Management Trainee- Fundamental analyst
DENIP Consultants Pvt Ltd
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