“Sasken Communication Technologies (SCTL), incorporated in 1989, is a global leader in providing embedded R&D services, comprehensive testing services, IT infrastructure services and application development & data services to device OEMs, network OEMs, semiconductor vendors, operators and retail & insurance enterprises across the world. Global Fortune 500 and Tier 1 companies in these segments are part of Sasken's customer profile. The company is a certified at SEI CMM Level 5. It has also received ISO 9001:2000, ISO 27001, TL 9000 and ISO 14001 certifications for its quality management. The company is a member of premier technology bodies including ITU, 3GPP, GCF, MPEG-ISO, WiMAX, NFC, DLNA and ATM, DSL & SDR forums. Committed to innovation, Sasken works with customers to help them get to market ahead of the competition, and stay focused on new product development and manufacturing. With deep understanding of the communications industry, access to current and emerging technologies, mature development processes, global resources and a proven track record, Sasken creates complete solutions to help clients succeed. Clients choose Sasken for the comprehensive range of application solutions and services, backed by a proven reputation for expert support and high quality.” “At the current market price of Rs.246.05, the stock P/E ratio is at 4.14 x FY15E and 9.88 x FY16E respectively. Earnings per share (EPS) of the company for the earnings for FY15E and FY16E are seen at Rs. 59.43 and Rs. 24.90 respectively. Operating Profit and PAT of the company are expected to grow at a CAGR of 13% and 18% over 2013 to 2016E respectively. On the basis of EV/EBITDA, the stock trades at 4.93 x for FY15E and 4.19 x for FY16E. Price to Book Value of the stock is expected to be at 1.17 x and 1.08 x respectively for FY15E and FY16E. We recommend ‘BUY’ in this particular scrip with a target price of Rs. 276.00 for Medium to Long term investment,” says Firstcall Research report.
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