January 19, 2017 / 17:57 IST
The management indicated better financial performance prospects in CY17, over CY16, driven by strong order intake, no near-term client/project ramp-downs and a likely reversal of provision due to favorable settlement in a government project (this may result in some gains in operating profit without any incremental cost).
Outlook
Story continues below Advertisement
We believe as it sees stability in troubled accounts, performance may improve across metrics of growth, OPM and cash flows (no meaningful capex expected in the near term for organic business). We maintain a Buy rating on the stock, with a revised target price of Rs500, valued at 10x Sept ’18e earnings (target price revised down from Rs520 on growth/earnings cut). The stock is attractively priced at 10x TMF earnings; however, the earnings commentary does not enthuse any near-term triggers for the stock.
For all recommendations, click hereDisclaimer: 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!
