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Sell Infotech Enterprises, target of Rs 245: IndiaInfoline
IndiaInfoline has maintained its sell rating on Infotech Enterprises with a traget price of Rs 245 implies a downside of 13%. The stock is currently trading at a premium valuation to HCL Tech.
IndiaInfoline has maintained its sell rating on Infotech Enterprises with a traget price of Rs 245 in its April 22, 2008 research report. "Infotech Enterprises' Q4 revenue growth was at 6% qoq below expectations. The company's EBITDA margin was flat qoq despite a sharp improvement in gross margin. Its net profit growth was at 21% qoq buoyed by higher other income and IASI profit share."
"We retain SELL recommendation on Infotech as our target price of Rs 245 based on 12.5x FY09E EPS (assigned P/E multiple is at premium to median mid-cap valuation) implies a downside of 13%. The only risk to our view would be any EPS accretive acquisitions, which the company is actively scouting for. We believe that relatively strong growth outlook and niche positioning of Infotech in the mid-cap space is already factored in the current price. The stock is currently trading at a premium valuation to HCL Tech," says IndiaInfoline research report.
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