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Last Updated : Aug 09, 2017 04:07 PM IST | Source: Moneycontrol.com

Buy Majesco; target of Rs 540: HDFC Securities

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.

 
 
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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.

Outlook

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.

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For all recommendations report, click here

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First Published on Aug 9, 2017 04:07 pm
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