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Sify Ltd. (SIFY) seems an interesting Indian stock. Should I buy? February 14, 2007

Posted by deminvest in growth stock, India Investing, Internet stocks, investment, SIFY Sify, Single stocks, stocks.

Sify is basically an Internet cafe owner. We, western proletarians, pity ourselves because we don’t drive brand new SUVs or because we can’t buy Prada shoes… But we take for guaranteed commodities like… Broadband connection at home. The really poor in developing countries just can’t afford it. That is why a company like SIFY is the first Internet cafes operator in India with 3500 “Iway” Internet cafes in 158 Indian cities which make broadband available to the masses.

Indian Internet cafè

SIFY also offers broadband to 200,000 Indian houses and dial up to 1 million. Sify.com is a big portal and n.7 most visited site in India.

Let’s give a close to some of the juicy numbers:

Forward P/E: 44.15… seems expensive

Price/Sales (ttm): 3.15 seems expensive too…

I can’t find any good number, except their revenue growth of about 25% a year and $50 Millions cash which is about one seventh of their market value and half of their yearly revenue.

Here is some data about their growth in thousands:

Period Ending: 3/31/2006 3/31/2005 3/31/2004 3/31/2003
Total Revenue $105,256 $82,839 $64,544 $41,957
Net Income ($3,355) ($7,051) ($8,555) ($27,969)

Apparently they are switching to positive earnings now, which is great.

SIFY does not look like a sure bet, but a growing company, bringing Internet to Indian masses which is turning into profit is something that attracts me, western proletarian investor, seated comfortably in front of my broadband connection.


1. deminvest - April 10, 2007

not much has happened from Febraury to April. SIFY has lost 1% of its value. Goog thing I did not buy. I think SIFY is not anymore a prospect buy for me. Bye Sify!

2. Tre Book - August 22, 2007

Found your blog and messages. Some sage advice. Where, as an American can I invest in Indian Mutual Funds/Schemes on the Bombay Stock Exchange?

3. deminvest - August 27, 2007

there is the IFN India Fund, but you should check that its premium isn’t too high now. You can find a couppl,e old posts abiout it:

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