Hold Cigniti Technologies; target of Rs 421: Axis Direct

Axis Direct recommended hold rating on Cigniti Technologies with a target price of Rs 421 in its research report dated November 24, 2016.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney IThe Winning Leap SME Special
Moneycontrol

Home » News » Recommendations

Dec 01, 2016, 11.39 AM | Source: Moneycontrol.com

Hold Cigniti Technologies; target of Rs 421: Axis Direct

Axis Direct recommended hold rating on Cigniti Technologies with a target price of Rs 421 in its research report dated November 24, 2016.

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

Hold Cigniti Technologies; target of Rs 421: Axis Direct

Axis Direct recommended hold rating on Cigniti Technologies with a target price of Rs 421 in its research report dated November 24, 2016.

Post Your Comments

Share Cancel

(more)

, Axis Securities Limited |


Axis Direct's research report on Cigniti Technologies

Cigniti Technologies Ltd (Cigniti) reported revenues and earnings of Rs 170.2 Cr (up 16.5% Y-o-Y, 3.1% Q-o-Q) and Rs 13.9 Cr (up 9.8% Y-o-Y, 2.6% Q-o-Q) respectively in Q2FY17. EBIDTA margin in Q2FY17 contracted 150 bps Y-o-Y to 15.8% primarily on account of higher personnel expenses. On sequential basis, on account of increased personnel and other expenses, margin declined by 210 bps. Margins have declined due to hirings, payment of arrears, salary revision, expansion in newer regions, pre-closure of few Australian offices and higher processing charges.

The company is continuously recruiting the new employees to meet the requirements. For Q2FY17, employee utilization for onsite and offshore business was reported at 85% and 73% respectively. We estimate revenues and earnings to grow at a CAGR of 19% and 18.2% respectively over FY16-FY18E. Considering macro challenges (mainly Europe/UK exposure) going forward for IT players, expected pricing pressure and currency volatility, we reduce our target P/E for Cigniti to 15x and arrive at a target price of Rs 421.

For all recommendations, click here

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.

To read the full report click here

Buy, Hold, Sell ? Hear it first on M3
Hold Cigniti Technologies; target of Rs 421: Axis Direct

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login