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Last Updated : Feb 02, 2017 04:35 PM IST | Source: Moneycontrol.com

Buy Majesco; target of Rs 573: HDFC Securities

HDFC Securities is bullish on Majesco has recommended buy rating on the stock with a target price of Rs 573 in its research report dated February 02, 2017.

 
 
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HDFC Securities' research report on Majesco


Majesco struggled in 3Q, posting yet another weak quarter, with a 3.3% QoQ USD revenue decline (US$ 30.0mn vs. est US$ 31.6mn), led by slowdown in L&A (-10.1% QoQ) and client specific issues. The margin expansion was a bright point, led by efficient cost management and lower R&D cost.


Outlook
We cut revenue estimates by 2.9/8.6% for FY17/18E due to the 3Q miss and now factor in a slower ramp up. Maintain BUY with TP of Rs 573 based on 1.8x EV/revenue multiple (cut by 10% vs. 2.0x earlier).

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First Published on Feb 2, 2017 04:35 pm
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