Kotak Securities is bullish on NIIT has recommended buy rating on the stock with a target price of Rs 110 in its research report dated October 29, 2018.
Kotak Securities' research report on NIIT
NIIT Ltd 2QFY19 revenue were above our estimates at Rs.22.9bn v/s our estimate of Rs.22.3bn. Margins at 9.58% were about 15bps above our estimates. The beat was on the back of higher than expected growth in SNC business and Corporate Learning Business which offset the sharp de growth in School Business.
We have marginally lowered our revenue estimates and expect revenue growth of 9% CAGR over FY18-20E and EBITDA margin to improve by 190bps (v/s 230bps earlier) over FY18-20E. We maintain BUY with a revised target price of Rs.110 (Rs.125 earlier).
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