Buy AXISCADES Engineering; target of Rs 73: Arihant Capital

Arihant Capital 's research report on AXISCADES Engineering

AXISCADES Engineering Technologies reported good set of numbers in Q4FY20. Consolidated revenue for the quarter stood at Rs 1,924 mn, registering +14.3% QoQ/+18.4% YoY growth. Reported EBITDA stood at Rs 332 mn against Rs 85 mn in the corresponding quarter of previous year. On a sequential basis EBITDA saw a growth of +33%. EBITDA margin expanded +243 bps QoQ/+1202 bps YoY to 17.3%, against 5.2% in Q4FY19. The company saw expansion in margin after closer alignment to customers. Consolidated PAT for the quarter stood at Rs 164 mn, registering a sequential growth of +98.0% QoQ.

Outlook

The Company delivered significant improvement in Revenue, EBITDA Margins and Net Profits on back of increased and new engagements from customers. With a longer-term perspective and after factoring in good Q4FY20 results, we have revised our FY21E/FY22E estimates. We maintain our Buy rating on AXISCADES with a target price of Rs 73.

AXISCADES Engineering 06072020-ahri

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