Broking house, IL&FS Investsmart is bullish on Allsec Technologies and has recommended buy rating on the stock with a price target of Rs 295.
IL&FS Investsmart report on Allsec Technologies:
"During Q2FY07, Allsec Technologies (Allsec) reported revenues and net profits of Rs 308 million and Rs 74 million respectively, a sequential increase of 11.5% and 9.3% respectively. The highlight of the result, however, was a 130 bps expansion in EBITDA margins."
"Due to higher than expected Q2FY07 results and cash infusion from Carlyle, we are increasing our FY07E and FY08E net profit estimates by 3.3% and 13.4% respectively. We, however, are reducing our EPS estimates by 23.7% and 15.8% respectively, to take into account the equity dilution due to the preferential allotment to Carlyle."
"Currently, the stock is quoting at FY07E and FY08E PER of 12.2x and 8.5x respectively. We are maintaining our 'buy' on the stock with a price target of Rs 295, 10x FY08E earnings."
