Buy Financial Tech; target of Rs 1047: Firstcall Research

“Financial Technologies (India) (FTIL) was established in 1988. It is a flagship company of the Financial Technologies Group. Financial Technologies (India) is a large exchange and ecosystem network of 10 exchanges and 5 ecosystem spanning Africa to Asia across multi asset including commodities, currencies, energy and equity. Financial Technologies (India) Ltd. (FTIL) is the flagship company of the Financial Technologies Group. FTIL is a global leader in creating and operating technology centric, next-generation financial markets that are transparent, efficient and liquid, across multi asset classes, including equities, commodities, currencies and bonds, among others. Its highly robust and scalable exchange and trading technology, coupled with deep domain expertise, gives it a decisive edge in driving mass disruptive innovation that is unmatched in financial markets.”

“Financial Technologies (India) Ltd is a global leader in offering technology Intellectual Property and domain expertise to create and trade on next generation financial markets, that are transparent, efficient and liquid, across all asset classes across globe, reported its financial results for the quarter ended 30th June, 2012. The first quarter witness a healthy increase in overall sales as well as profitability. The company’s net profit jumps to Rs.760.61 million against Rs.392.08 million in the corresponding quarter ending of previous year, an increase of 93.99%. Revenue for the quarter rose 3.13% to Rs.707.34 million from Rs.685.84 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.16.51 a share during the quarter, registering 93.99% increase over previous year period. Profit before interest, depreciation and tax is Rs.1026.41 millions as against Rs.486.06 millions in the corresponding period of the previous year.”

“At the current market price of Rs.935.00, the stock P/E ratio is at 7.82 x FY13E and 6.81 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.119.52 and Rs.137.29 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 9% and 90% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 6.22 x for FY13E and 5.02 x for FY14E. Price to Book Value of the stock is expected to be at 1.43 x and 1.18 x respectively for FY13E and FY14E. The Company’s pan-African commodity derivatives exchange based out of Botswana will also commence operations soon. The FT Group operates one of the world’s largest networks of nine exchanges connecting fastgrowing economies of Africa, Middle East, India and South East Asia. We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend buy in this particular scrip with a target price of Rs.1047 for Medium to Long term investment,” says Firstcall Research report.

Bodies Corporate holding more than 50% in Indian cos  

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