October 08, 2015 / 19:43 IST
"We initiate coverage on Intellect Design Arena, with a Buy rating and a target of Rs 230. Intellect has built an impressive sales team in key regions. While this would raise costs in the short run, Intellect is now beginning to see benefits in terms of greater number of deal wins and the resultant revenue acceleration. We expect margins to improve as non-linearity of the product business plays out."
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"Intellect delivered an impressive Q1, with 17% qoq revenue growth. It maintained its guidance of 22-26%, which now looks conservative (1% CQGR to achieve it). We reckon it can report 28% growth in FY16 and turn EBITDA positive by Q4 FY16."
Valuation: "We initiate coverage, with a target of Rs 230 (2x FY18 revenues) reflecting optimism about management execution capability and attractive market dynamics. Buy the stock with a target price of Rs 230", says AnandRathi Securities research report.For all recommendations, click hereDisclaimer: 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. 
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