Buy Helios; target of Rs 69: BP Equities
BP Equities is bullish on Helios and Matheson Information Technology and has recommended buy rating on the stock with a target of Rs 69 in its May 16, 2013 research report.
BP Equities`s research report on Helios and Matheson Information Technology
"Helios and Matheson Information technology (HMITL) limited founded in 1991 is a mid sized provider of IT services. Since then the company has grown tremendously spurted by a large number of acquisitions within the industry. The firm provides a wide range of services catering primarily to the BFSI, healthcare ,technology along with other sectors. The entity operates through its five subsidiaries spread across the US, Singapore and India. As of 2012 the company has over 3,000 employees and caters to about 70 clients spanning various verticals. A large proportion of the company’s revenue is contributed by the US market.” “Since inception, the core focus of the company has been to establish a deep rooted relationship with its clients. While this strategy has ensured high levels of loyalty among existing clients, the firm has also been pro active in garnering new clients contributing healthy additions to the overall customer base. The customer base does not only remain impressive quantitatively but also comprises of quality clients. Large global banks and a handful of fortune 500 corporations form a part of the firm’s top clientele,, bearing witness to the management’s decisiveness of being a quality oriented services provider. HMITL’s versatile business model has enabled the organization to cater to a diverse array of businesses dispersed around various sectors and geographies. The company’s global delivery model helps to deliver services with uniformity from multiple locations. As the big MNC clients have businesses in different parts of the world ,strategic delivery centers located at important sites suffice this need seamlessly. Adapting to the needs of key clients without compromising on quality has helped the firm to secure a strong foothold amidst this dynamic landscape.” “The improving macro economic situation in the west bodes well for the overall Indian IT sector. We believe strong recovery in the US economy will boost IT spending in the BFSI and healthcare verticals. HMITL which is a small IT player, has managed to carve a niche for itself by offering customized services specially as a subcontractor to larger IT companies. The company remains an attractive proposition by way of key attributes like strong client relationships, diversified global presence and widespread offerings catering to various sectors along with a dominant presence in the BFSI space. We have assigned a target P/E of ~4x to our FY14E EPS of Rs 19.7 to arrive at a target price of Rs 69 with a long term BUY rating on the stock considering a 12-15 month investment horizon (28 percent upside from CMP),” says BP Equities 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.
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
