Accumulate NIIT Tech; target of Rs 405: Kotak Sec

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26 Aug, 2025 12:21

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Kotak Securities' report on NIIT Technologies

"NIITT's operational results were lackluster and came in marginally better than our expectations. Apart from seasonality, continuing delays in a couple of Insurance accounts and a T&T account impacted the revenue growth, which came in at 1% QoQ in CC terms (2.1% in 2Q). This is the fourth quarter of flattish-to-low services revenues. NIITT needs to tighten its delivery organization further. The order bookings were encouraging at $109 ($103mn in 2Q) and these should translate into better revenue growth, going ahead. We tweak our earnings to Rs.37 per share for FY16 (Rs.36, earlier) and TP to Rs.405 (Rs.396 earlier). We recommend buying the stock at declines - ACCUMULATE (REDUCE earlier). NIITT needs to ensure better consistency in revenue growth to attract higher valuations. The company will have net cash of about Rs.80 per share by FY16 end, as per our estimates", says Kotak Securities research report.

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