Buy NIIT Technologies; target of Rs 360: PLilladher
Prabhudas Lilladher 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.
Prabhudas Lilladher`s research report on NIIT Technologies
"NIIT Technologies (NIIT Tech) reported revenues/margin above PLe/Consensus expectation. Moreover, margins recovered due to improvement in GIS business. Improving revenue outlook in the Travel & Transportation space (IATA revised its growth commentary upwards), ramp-up in government deals and better order intake restores our confidence in their revenue growth & margin profile. We retain our ‘BUY. rating with target price of Rs360."“NIIT Tech reported revenue growth of 4.4 percent QoQ (3.3 percent @cc) to Rs5,372m (PLe: Rs5,281m, Cons: Rs5,362m). EBITDA margins expanded by 65bps to 16.5 percent (PLe: 16 percent, Cons: 16.4 percent), due to the recovery in the GIS business. However, PAT growth for Q4FY13 was flattish QoQ at Rs566m (PLe: Rs5554m, Cons: Rs515m) due to losses in other income (Rs31m, due to revaluation of foreign currency assets & liabilities). Order book for the company has grown by 32 percent QoQ to US$110m. The current order book does not include few of the deal wins that the company had over the last 1.5 months (TCV – AAI: Rs3.44bn, AP govt.: Rs1.89bn). We expect the order book to get stronger in Q1FY14. Moreover, the management remains confident about retaining margins.” “Positive IATA commentary, project ramp-up in government projects and stability in GIS would give revenue growth with stable margin. It is currently trading at 6.3x FY14E earnings estimates with an EPS CAGR of 15 percent (FY13-15E),” says Prabhudas Lilladher 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!
