Buy AXISCADES Engineering; target of Rs 73: Arihant Capital

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Arihant Capital 's research report on AXISCADES Engineering

AXISCADES Engineering Technologies reported good set of numbers in Q4FY20. Consolidated revenue for the quarter stood at Rs 1,924 mn, registering +14.3% QoQ/+18.4% YoY growth. Reported EBITDA stood at Rs 332 mn against Rs 85 mn in the corresponding quarter of previous year. On a sequential basis EBITDA saw a growth of +33%. EBITDA margin expanded +243 bps QoQ/+1202 bps YoY to 17.3%, against 5.2% in Q4FY19. The company saw expansion in margin after closer alignment to customers. Consolidated PAT for the quarter stood at Rs 164 mn, registering a sequential growth of +98.0% QoQ.

Outlook

The Company delivered significant improvement in Revenue, EBITDA Margins and Net Profits on back of increased and new engagements from customers. With a longer-term perspective and after factoring in good Q4FY20 results, we have revised our FY21E/FY22E estimates. We maintain our Buy rating on AXISCADES with a target price of Rs 73.

For all recommendations report, click here

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