Buyback: Guarantee For Growth

Though in 2008 many companies management were tempted to go for the buyback yet if we analyze the performance of "serious" companies on the bourses then buyback exercise could certainly be a guarantee for upside movement. Serious in the sense as these are the ones which have completed 100% buyback exercise in terms of the value. If we go by the growth of these 12 companies from Dec 08 to Dec 08 then they are well ahead of the growth given by other scrips. In fact in comparison to Sensex, which zoomed past around 94% during this period to touch 17198 points on December 1,2009, only one company, Le. R systems was limping behind it with around 74% growth. Otherwise it was the feast for the investors as all other 11 counters posted whooping growth numbers. In fact companies like Patni computers and supreme industries smacked 225% and 196% in return respectively, clearly indicating the positive sentiments for these companies on the bourses.