HDFC Securities is bullish on Majesco has recommended Buy rating on the stock with a target price of Rs 540 in its research report dated August 04, 2017.
HDFC Securities' research report on Majesco
Majesco posted weak numbers in 1QFY18. Revenue declined 0.8% QoQ to USD 27.9mn vs. our estimate of USD 28.9mn. This was the fourth consecutive quarter of decline in revenue, and was led by shift in client preferences (on-premise to cloud), low revenue from cloud deals initially (will ramp-up later) and client-specific issues (L&A). We believe these issues are a thing of the past, and recovery will commence from 2QFY18.
We have cut our revenue estimates by 1.5/0.5% for FY18/19E, owing to the 1Q miss. Maintain BUY with a TP of Rs 540, based on 1.8x FY19E EV/revenue multiple.
For all recommendations report, 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.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.