Buy Birlasoft: target of Rs 450: Sharekhan

Sharekhan is bullish on Birlasoft has recommended buy rating on the stock with a target price of Rs 450 in its research report dated June 08, 2021.

June 09, 2021 / 03:40 PM IST
 
 
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Sharekhan's research report on Birlasoft


Birlasoft is confident of clocking double-digit revenue growth in FY2022, led by strong deal win TCVs, increasing deal sizes, robust deal pipeline, strong top accounts mining and broad-based growth. Management expects EBITDA margin would sustain at 15% with an upward bias in FY2022 despite wage revisions and investments, which would be partly offset by strong revenue growth, higher offshoring and other efficiencies. We expect the company’s revenue/earnings to report a 15%/27% CAGR over FY2021-FY2023E. We prefer stock despite sharp run-up in last one year given strong FCF growth, healthy net cash balance and improving dividend payout ratio.



Outlook


We maintain a Buy rating on Birlasoft with a revised PT of Rs. 450, given strong earnings growth potential, improving deal win rates and strong deal bookings.


For all recommendations report, click here


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first published: Jun 9, 2021 03:40 pm

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