Motilal Oswal's research report on SIS
SIS (SECIS)’s 4QFY25 revenue was up 9.3% YoY/1.9% QoQ at INR34.27b, largely in line with our estimate of INR34.6b. Revenue growth was aided by 12.9% YoY growth in Facility management, whereas India Security/International security posted 9.6%/7.7% growth YoY. EBITDA margin came in at 4.8%, flat YoY (vs. est. 4.9%). India Security margin was up 10bp QoQ at 5.6%, while International Business margin was up 20bp QoQ at 4%. Adjusted PAT stood at INR825m (down 19% QoQ/up 53% YoY). The net debt-to-EBITDA ratio stood at 0.71 (1.07x in 3Q). For FY25, revenue/EBITDA/ adj. PAT grew by 8%/16%/67% YoY.
Outlook
We expect revenue/EBITDA/adj. PAT to grow 11%/19%/30% YoY in 1QFY26. We reiterate our BUY rating on the stock with a TP of INR400, implying a 19% upside potential.
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