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Mahindra Satyam reported its 1QFY2011 and 2QFY2011 numbers, which were below the markets expectations. The company reported a 0.4% qoq decline in revenue to Rs1,242cr in 2QFY2011 from Rs1,248cr in 1QFY2011. EBITDA margin declined by 381bp qoq to 5.9% in 2QFY2011 from 9.7% in 1QFY2011 on the back of wage hike in 2QFY2011, which led to a Rs50cr increase in employee cost. Mahindra Satyam is currently trading at 1.6x EV/Sales, which is on a higher side as compared to Tech Mahindra, which is trading at just 1.15x EV/Sales on a standalone basis. Also, when we value Tech Mahindra on a standalone basis at 12x FY2012E EPS of Rs55.1 and add the value of its stake in Satyam with holding discount of 15% to its market cap, Tech Mahindra still looks attractive on risk-reward basis.Download Full Report