Axis Direct recommended hold rating on Cigniti Technologies with a target price of Rs 421 in its research report dated November 24, 2016.
Axis Direct's research report on Cigniti Technologies
The company is continuously recruiting the new employees to meet the requirements. For Q2FY17, employee utilization for onsite and offshore business was reported at 85% and 73% respectively. We estimate revenues and earnings to grow at a CAGR of 19% and 18.2% respectively over FY16-FY18E. Considering macro challenges (mainly Europe/UK exposure) going forward for IT players, expected pricing pressure and currency volatility, we reduce our target P/E for Cigniti to 15x and arrive at a target price of Rs 421.
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