Arihant Capital's research report on Birlasoft
Birlasoft(BSFOT) Ltd in Q1FY23, revenue above our estimates: Reported revenue of $ 148.6 Mn ( up 1.5% QoQ/15.7%YoY in USD terms) against our estimate of $147.8 Mn. In Constant Currency (CC) terms revenue was up 17.7%YoY/2.3%QoQ. Reported revenue of INR 11,544 Mn up 4.8% QoQ/ 22.1% YoY against our estimate of INR 11,410 Mn. The growth has been led by top customers which continue to grow at a healthy pace. The company expertise in driving digital transformation for clients is driving good growth for Business and Technology Transformation services, which recorded a growth of 20.7% YoY.
We value Birlasoft at a PE of 20x to its FY24E EPS of INR 21.4, which yields a revised target price of INR 429 per share (earlier target price; INR 443 per share). Accordingly, we maintain a BUY rating on the stock.
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