Buy NIIT Technologies; target Rs 305: Nirmal Bang
Nirmal Bang is bullish on NIIT Technologies and has recommended buy rating on the stock with a price target of Rs 305, in its research report.
July 18, 2013 / 13:29 IST
Nirmal Bang's research report on NIIT Technologies
NIIT Technologies (NIIT Tech) reported a net profit of Rs.53.2 crore in Q1FY’14 compared to Rs.57.5 crore during Q1FY’13. Net Sales for the quarter stood at Rs.541.9 crore, registering an increase of 0.9 per cent q-o-q.Order intake during the quarter stood at USD 145 million taking the total executable order book to USD263 million over the next 12 monthsMargins during the quarter registered a decline of more than 200 bps on a y-o-y basis on account of wage hikes during the quarterStrong traction continues from the USA (39 per cent compared to 36 per cent last year) with EMEA continuing to exhibit weakness (35 per cent from 39 per cent).EPS for the quarter stood at Rs.8.8, cash and cash equivalent adds up to Rs.247.9 crore, translating into Rs.41 per share. This is equal to ~16 per cent of the present price of the company.Valuation & Recommendation: "We expect the company to post net sales of Rs.2344.8 crore for FY’14E. The net profit for FY’14E is expected to be Rs.231.7 crore, translating into an EPS of Rs.38.1. We value the company at 8x FY’14E EPS of Rs.38.1 to arrive at a price target of Rs.305 over the next 9 months. Buy the stock," says Nirmal Bang 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. 
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