Buy CMC; target of Rs 2060: Firstcall Research

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Firstcall Research`s research report on CMC“Incorporated in 1975, CMC Ltd. a subsidiary of Tata Consultancy Services Limited (TCS Ltd), one of the world's leading information technology consulting, services and business process outsourcing organizations, CMC Limited is a part of the US$ 100.09 billion Tata Group, India's best known business conglomerate. The company is operating out of 18 offices and 180 service locations in the country, CMC employs over 11,000 people and has a wholly owned subsidiary in USA called CMC Americas, Inc. Company provides a wide spectrum of unique Information Technology solutions and services to a clientele of premier organizations in the government and private sectors. Today, CMC Limited, an ISO 9001:2000, certified and CMMI Level V accredited organization, is positioned as a premier IT solutions provider in the fast growing and competitive IT market. CMC focused into systems integration, interfacing, installation, commissioning, software development, as well as education and training, on a national basis. The R&D facility was set up in 1982, to undertake competency development in niche areas in the frontiers of technology. CMC also has a subsidiary, CMC Americas, which services clients in the US, while its branch offices in the UK and Dubai market products and services in Europe, Africa and the Middle East.” “At the current market price of Rs.1872.65, the stock P/E ratio is at 18.85 x FY15E and 17.17 x FY16E respectively. Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs.99.35 and Rs.109.08 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 14% and 13% over 2013 to 2016E respectively. On the basis of EV/EBITDA, the stock trades at 12.08 x for FY15E and 10.94 x for FY16E. Price to Book Value of the stock is expected to be at 3.89 x and 3.17 x respectively for FY15E and FY16E. We recommend ‘BUY’ in this particular scrip with a target price of Rs.2060.00 for Medium to Long term investment,” says Firstcall Research report.

For all recommendations, click here 

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More