Firstcall Research is bullish on SQS India BFSI and has recommended buy rating on the stock with a target of Rs 960 in its November 23, 2015 research report.
Firstcall Research’s report on SQS India BFSI
SQS India BFSI Ltd. (formerly known as “Thinksoft Global Services Ltd”) is an independent Business Assurance and Testing Specialist working entirely with financial sector clients in APAC, the USA, Europe, Middle East and India. In Q2 FY16, Consolidated Net profit rose by 43.06% yo-y at Rs 102.00 million compared to Rs 71.30 million in Q2 FY15. The company’s net sales registered 17.82% in Q2 FY16 and stood at a record of Rs. 665.00 million when compared to Rs. 564.40 million in Q2 FY15.
Outlook and Valuation
At the current market price of Rs.870.50, the stock P/E ratio is at 30.13 x FY16E and 26.18 x FY17E respectively. Earning per share (EPS) of the company for the earnings for FY16E and FY17E is seen at Rs. 28.90 and Rs. 33.25 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 15% & 16% over 2014 to 2017E respectively. On the basis of EV/EBITDA, the stock trades at 16.33 x for FY16E and 14.21 x for FY17E. Price to Book Value of the stock is expected to be at 7.05 x and 6.20 x respectively for FY16E and FY17E. We recommend ‘BUY’ in this particular scrip with a target price of Rs. 960.00 for Medium to Long term investment.
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