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Buy Omnitech Infosolution, tgt Rs 305: Emkay
Emkay research has maintained buy rating on Omnitech Infosolution with target price of Rs 305. OIL is well placed to tap the opportunities in the IT services and product domain with both organic and inorganic growth in infrastructure management and software testing services going ahead
Emkay research has maintained buy rating on Omnitech Infosolution with target price of Rs 305 in its May 20, 2008 report. "OIL is establishing itself as a dominant player in the infrastructure management, disaster recovery and business continuity space. We believe that OIL's infrastructure management and application management coupled with performance management and software testing services which have better margins could drive its revenues and profitability going forward. OIL is well placed to tap the opportunities in the IT services and product domain with both organic and inorganic growth in infrastructure management and software testing services going ahead. We maintain our financial estimates for FY09E. We may revise the same and introduce our new estimates for FY10 on getting more clarity on the acquisition front. We expect OIL's revenue and net profit to grow at a CAGR of 59.3% and 67% respectively over FY07A-09E. At current market price of Rs 199, OIL stock is trading at 7.7x FY09E EPS of Rs 25.8. We maintain a BUY on the stock with a target price of Rs 305. At our target price, stock will be valued at 11.8x FY09E EPS" according to Emkay research report.
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