Buy NIIT Tech; target of Rs 360: Dolat Capital
Dolat Capital is bullish on NIIT Technologies and has recommended buy rating on the stock with a target of Rs 360 in its May 17, 2013 research report.
Dolat Capital` research report on NIIT Technologies
“NIIT Technologies is confident to do better than industry in FY14 helped by robust 12M order executable book of USD 252mn. It expect sustained momentum from its Manufacturing and Government clients specifically in the US and Asia markets. Europe is likely to remain soft due to existing economic uncertainties.” “Revenue in reported currency grew by 4.4 percent QQ at Rs 5.4 bn from Rs 5.1 bn in Q3FY13 driven by strong growth in Government projects (revenues up 47 percent, contributes 11 percent of revenues). Travel vertical witnessed revenues decline of 7 percent as it exited 2 accounts during the quarter. Revenues were strong across key projects and segments such as CCTNS, Morris, GIS, ROOM solutions. However; Proyecta revenues were below par as the key client Iberia continues to witness business ramp down. NIIT Tech added fresh orders of about USD 110mn during the quarter leading to USD 252mn of firm business executable over next 12 month basis. It has added 5 new clients (1 in Manufacturing, 2 each in Transport and Government and a USD 10mn renewal from a BFSI client). The company expects sustained demand even for the non-linear business segment both for the managed services and transaction based services in the Morris account.” “Our optimistic belief on sustained revenue growth gets further reinforced on strong revenue growth performance despite the various economic challenges. We remain positive on the stock in view of its sustained traction in fresh order intake and client additions supported by its niche capabilities in TTL and Insurance verticals. We maintain our positive view on the stock and have built in Revenue/PAT CAGR of 17 percent/16 percent over FY13-15E. We maintain our BUY rating on the stock with a Target Price of Rs 360, valued at 7.5x of its FY15E earnings,” says Dolat Capital research report. 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. 
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