Hold NIIT Technologies: Parag Parikh Research

Parag Parikh Research has recommended hold rating on NIIT Technologies, in its January 16, 2010 research report.

"NIIT Technologies reported a flat topline this quarter registering a 7% decline YoY. Despite that PAT grew 111% YoY. The topline was eroded by Rs. 128 Mn, on account of crystallization of hedging losses. In spite of this, the operating margins are at ~22%, excl. the hedging losses, the margins would be at 26%. At Rs 187 NIIT Tech trades at ~10 times P/E (TTM). With the overall outlook being positive and the odds of these expectations being already factored in, are very high. We recommend a HOLD for NIIT Technologies," says Parag Parikh Research report.

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