Buy Take Solutions; target of Rs 50: Nirmal Bang

1997 Investors following Take Solutions. Share this News with them.

0

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

Buy Take Solutions; target of Rs 50: Nirmal Bang

Nirmal Bang is bullish on Take Solutions and has recommended buy rating on the stock with a target of Rs 50 in its February 4, 2011 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Buy Phillips Carbon Black; target of Rs 254: Angel Broking Buy Andhra Bank; target of Rs 171: KRChoksey Buy Grasim Inds; target of Rs 2750: Anand Rathi Securities ALSO READ See previous views by Nirmal Bang See what other Experts & Brokerages are saying about Take Solutions See messages about Take Solutions Take Solutions BSE | NSE 31/05/12 Are Mutual Funds betting on Take Solutions?

Nirmal Bang is bullish on Take Solutions and has recommended buy rating on the stock with a target of Rs 50 in its February 4, 2011 research report.

"Take Solutions, revenues grew 6.5% QoQ in Q3 FY11 to Rs 124.9 crore boosted by an improving demand scenario and business growth from existing clients. Share of LS domain in the overall revenues has been consistenly improving over the past few quarters. TAKE is focussed on creating a strong Life Science portfolio."

"Take Solutions has reported EBITDA of Rs 27.2 crore in Q3 FY11 as compared to Rs 26.1 crore in Q2 FY11. EBITDA margin declined by 45 bps QoQ on the back of increase in operating costs.  TAKE reported net profit of Rs. 18.9 crore in Q3 FY11 as compared to Rs 16.3 crore in Q2 FY11. During the quarter PAT margins were 15.2% (+130 bps QoQ). This was primarily due to lower amortization charges in Q3 FY11 as compared to Q2 FY11.  Company's diluted EPS increased to Rs 1.58 in Q3 FY11 from Rs.1.36 in Q2 FY11."

"TAKE Solutions acquired UK-headquartered WCI Consulting Group through its subsidiary, a move that will help the company establish its presence in the European region. WCI complements and strengthens Take's portfolio of offerings to the global life sciences customers. WCI has in excess of 10 years of robust professional relationships across Europe and in the US. With global biopharmaceutical companies looking at improving productivity and ensuring compliance requirements, the acquisition gains more significance. The management is extremely bullish on this acquisition and believes that this move will bridge the gap in TAKE Solutions' global reach and opens up the European market. Considering that WCI Consulting Group had sales of around Rs.70-80 Crs in current year, this is a significant acquisition for the company."

"At the current price of Rs 31, TAKE is trading at a PE of 5.2x FY11 estimated EPS & 3.59 FY12 estimated EPS. The valuations look attractive at current levels given that TAKE is poised to improve its revenue run rate through a combination of organic and inorganic initiatives. Based on our estimated EPS of Rs 8.72 for FY 2012 and a target PE multiple of 6.0x we arrive at a target price of Rs 50 per share for TAKE indicating a potential upside of 61% from current levels. Therefore, we reiterate our BUY rating on the stock with a long term view," says Nirmal Bang 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