Buy Birlasoft: target of Rs 580: Sharekhan
Sharekhan is bullish on Birlasoft has recommended buy rating on the stock with a target price of Rs 580 in its research report dated November 30, 2021.
December 01, 2021 / 02:33 PM IST
Sharekhan's research report on Birlasoft
Birlasoft has transformed its business significantly from enterprise business to enterprise digital solutions in the last few years and is well-placed to capitalise opportunities by leveraging its product and platform-based solutions. Management remains confident of delivering decent revenue growth in Q3FY22 despite fewer billable days, led by strong broad-based demand, recovery in enterprise solutions and ramp-up of a new deal. Non-enterprise business to maintain growth momentum. The management aspires to clock $1 billion in annual revenues by FY2025 against current annual revenue run-rate of $548 million, of which $800-850 million would come from organic, while the rest would arise from inorganic activity. It also eyes EBITDA margins of 18% by FY2025.
We maintain a Buy on Birlasoft with a PT of Rs. 580, given its strong earnings growth potential, healthy traction in deal ACVs, sharp focus on micro-verticals approach and robust demand.
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