Buy Intellect Design; target of Rs 330: Dolat Capital Market

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Dolat Capital Market's research report on Intellect Design

Intellect Design (INDA) reported 7.6% YoY growth in its revenues to $50.1mn ahead of DE at $49mn and significant turnaround on EBIT margins at 19% (up 400bps QoQ, was loss making in YoY period) in Q2FY21, beating our expectations. Commentary remains confident on sustaining revenue traction in the nearfuture, given its strong deal win momentum (6 digital wins & 4 large deal wins), order book traction (up 8.5% YoY to Rs11.9bn), large funnel (pursuit $540mn) and strong recurring revenues (up 25% on TTM basis). Outlook remains positive as company witnessed demand recovery to Pre-Covid levels in many markets and increased acceptance for its offerings across segments. Aspire to grow Revenues at 20% FY21E onwards with focus on achieving 30% EBITDA Margin within next 4 Qtrs.

Outlook

Sustained growth traction and improved profitability/cashflow profile reinforces our positive view as we factor in revenue/EPS CAGR of ~14%/23% over FY21-23E with Buy rating and DCF based TP of Rs 330.

For all recommendations report, click here

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