Feb 14, 2017 06:14 PM IST | Source:

Hold SQS INDIA BFSI LTD; target of Rs 596: Axis Direct

Axis Direct recommended hold rating on SQS INDIA BFSI LTD with a target price of Rs 596 in its research report dated February 09, 2017.

  • bselive
  • nselive
Todays L/H

Axis Direct's research report on SQS INDIA BFSI LTD

SQS India BFSI Ltd delivered a modest performance in Q3FY17, with the company’s earnings (PAT) coming in at Rs 3.8 Cr, down 48.6% Y-o-Y on account of higher other expenses, decline in sales and forex loss. In Q3FY17, revenue of the company declined 9.2% Y-o-Y to Rs 60.9 Cr while other expenses increased 28.6% Y-o-Y to Rs 14.4 Cr, resulting in contraction in EBIDTA margin to 12.2% (down 660 bps).


Indian IT players are likely to face challenges due to USA’s provisions to increase minimum wages and 50:50 local hires. Also Brexit is likely to act as an overhang for next few quarters. We revise our earnings estimates downward to Rs 26.2 Cr/ 34.9 Cr from previous estimates of Rs 33.3 Cr/47.6 Cr for FY17E/FY18E respectively. We value the stock at a PE of 18xFY18E EPS and revise target price downward to Rs 596. Downgrade to hold.

For all recommendations, click here

The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.
Follow us on
Available On