Kotak - INFOTECH ENTERPRISES

Kotak in their report on Infotech Enterprises and their plans of acquisitions

In the absence of further details of the acquisition and till the time the company
gets approvals in the EGM, we are maintaining our earnings estimates and
target price for Infotech.

We remain optimistic about the company's healthy growth prospects, which is
visible in our 34% revenue growth assumption for FY08. We expect an EPS of
Rs.22.6 in FY08, a growth of 24.7% YoY.

However, at the current price, our FY08E earnings are discounted by 16x which,
we believe, fully factors in our healthy outlook for the company's revenue
growth in FY08.

Our DCF-based price target of Rs.331 suggests a potential downside to the stock
price from current levels. Thus, we recommend a REDUCE on the stock at the
current price.

Further information on inorganic initiatives or stock price declines could make
us take a re-look at our recommendation.