Buy Omnitech Infoso; target of Rs 330: Hem Securities

1778 Investors following Omnitech Infosolutions. Share this News with them.

0

Like this story, share it with millions of investors on M3

Buy Omnitech Infoso; target of Rs 330: Hem Securities

Hem Securities is bullish on Omnitech Infosolutions and has recommended buy rating on the stock with a target of Rs 330 in its September 28, 2010 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

ALSO READ See previous views by Hem Securities See what other Experts & Brokerages are saying about Omnitech Infosolutions See messages about Omnitech Infosolutions Omnitech Infoso BSE | NSE 30/05/12 Are Mutual Funds betting on Omnitech Infoso?

Hem Securities is bullish on Omnitech Infosolutions and has recommended buy rating on the stock with a target of Rs 330 in its September 28, 2010 research report.

"Omnitech Infosolutions (OISL) has posted strong numbers for the quarter ending June 2010. Net sales jumped about 64% from a year ago quarter to stay at Rs 699.21 million. The top line growth can be attributed to a robust domestic market operations and increasing revenues from Far East. Operating profits surged even higher by around 70% from the like quarter last year to stay at Rs 227.68 million. Net profit of the company ascended sharply about 74% from Rs 75.87 million clocked in Q1FY10 to Rs 131.77 million in Q1FY11. The company enjoyed a healthy operating profit margin of 32.56% due to increased contribution from Services. The staff cost has gone up significantly due to the hiring at the top level and expansion of team in Far East market."

"EPS stood at Rs 9.51 climbing sharply from Rs 5.47 (diluted) in Q1FY10. The Company aims y-o-y organic growth of 30%-35% in financial year ended March 2011 and to touch revenue of Rs 1000 crore by 2012-2013. Company's total revenue maintained a robust CAGR of 36% between 2005-06 and 2009-10."

"At the CMP of Rs 266, the stock is trading at a standalone PE of 9.41x and 7.5x its FY10 and FY11E EPS of Rs 28.27 and Rs 35.45, respectively. The stock is already running on a very low P/E, hence it offers good opportunity, we initiate a 'BUY' signal on the stock with a target price of Rs 330 in short to medium term investment horizon expecting an appreciation of about 24%," says Hem Securities research report.

Disclaimer: The views and investment tips expressed by investment experts 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.

To read the full report click on the attachment