Query Trends : Zylog Sys

Query : I have Zylog Sys 520 @ 480, pls advice with 2-3 months view shall I exit? then which are better to invest? Srinivas

Thebullishtrends : Zylog Sys shares closed on Friday at Rs.380. Zylog Sys is a global sercie provider with 100% EOU status with focus Application development and Integration (Web application,Web Services,Application Integration,Data Warehousing and mobile and wireless application. The company mobilised 126 crores through IPO in July'07. Promoter are having 33.16% stake in the company.

Zylog Sys is setting up 2 offshore development centres with a capacity of 800 and 1,250 seater at Chennai. Zylog derives significant revenues from partnering with system integrators/solution providers, independent software vendors, and value added resellers.

The company now derives 98 per cent of its revenues from the US. This together with the fact that the company has not entered into any forward contract towards hedging its dollar exposure, renders the company vulnerable to rupee appreciation risks. Zylog is maintains its margins similiar to Mastek and IGate.

Zylog Sys plans are on the way please review this scrip once the 3th quarter results announced in Jan'08