Broking house, Edelweiss Research has recommended buy rating on HOV Services .
Edelweiss Research report on HOV Services:
"HOV Services provides services in the F & A segment with operations in India and the US. The company's three lines of business are Accounts Receivable Management (ARM), Insurance & Tax Services (ITS) and Enterprise Management Tools & Services (EMTS) are all part of the broader Finance & Accounting (F&A) outsourcing segment."
"We expect revenues and net profit to grow at an annual rate of 33% and 43% respectively from FY07E through FY09E. At the CMP of INR 287 the stock trades at 11.4x and 9x our FY08E and FY09E consolidated EPS of INR 25.3 and INR 32 respectively. Considering its expansion plans, attractive valuations, potential upsides from further acquisitions, we initiate coverage with a BUY recommendation on the stock."
