Buy Accelya Kale Solutions; tgt Rs 505: Firstcall Research

Firstcall Research report on Accelya Kale Solutions

"Accelya Kale Solutions achieved a turnover of Rs. 788.68 million for the 3rd quarter of the current year 2012- 13 as against Rs. 544.76 millions in the corresponding quarter of the previous year. The company has reported an EBITDA of Rs. 381.50 millions and a net profit of Rs. 243.11 million against Rs. 87.41 million reported respectively in the corresponding quarter of the previous year. The company has reported an EPS of Rs. 16.29 for the 3rd quarter as against an EPS of Rs. 5.72 in the corresponding quarter of the previous year."

"Outlook and Conclusion: At the current market price of Rs.463.00, the stock P/E ratio is at 7.64 x FY13E and 5.78 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.60.63 and Rs.80.15 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 22 percent and 69 percent over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 4.50 x for FY13E and 3.44 x for FY14E. Price to Book Value of the stock is expected to be at 4.81 x and 4.68 x respectively for FY13E and FY14E. We expect that the company surplus scenario is likely to continue for the next upcoming years, will keep its growth story in the coming quarters also. We recommend 'BUY' in this particular scrip with a target price of Rs.505.00 for Medium to Long term investment," says Firstcall Research report.

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