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.
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.
BUY, SELL, KEEP 
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