Buy NIIT; target Rs 31: Ventura
Brokerage house Ventura Securities is bullish on NIIT and has recommended buy rating on the stock with a target price of Rs 31 in its August 13, 2013 research report.
August 16, 2013 / 11:38 IST
Ventura's research report on NIIT
Alarmed by the sharp slow down in IT related training business, the NIIT management has swiftly moved to remedy the situation by refocusing on growth opportunities, exiting non profitable businesses and revamping of existing offering. We believe that the change in the business mix which we expect to play out over the next couple of years should help the company regain its growth trajectory. Being the leading player in technical training courses, NIIT Ltd. is well poised to benefit from change in business mix and consolidation of cost, which is expected to happen in FY14. We expect revenues to grow at a CAGR of 4.2 percent to Rs 1043.1 crore by FY15E on the back of change in business mix and a good traction seen in cloud campus. Backed by improved margins and focus on newer areas along with improved associate income we expect the earnings to grow at a CAGR of 59.2 percent to Rs 66.5 Crore by FY15. We initiate coverage on NIIT Ltd. as a BUY with a Price Objective of Rs 31.1. At CMP of Rs 18, the stock is trading at 8.5x and 4.5x its estimated earnings for FY14E & FY15E respectively, representing a potential upside of ~73 percent over a period of 24 months," says Ventura Securities research report.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. 
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
