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Last Updated : Feb 13, 2019 04:36 PM IST | Source: Moneycontrol.com

Buy TeamLease Services; target of Rs 3400: Motilal Oswal

Motilal Oswal is bullish on TeamLease Services has recommended buy rating on the stock with a target price of Rs 3400 in its research report dated February 11, 2019.

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Motilal Oswal's research report on TeamLease Services


TeamLease Services (TEAM) has announced the acquisition of eCentric Solutions’ IT staffing business, which has 880 associates and revenue of INR450m (as of FY18). The company will pay 4.5x PBT (~INR150-180m) or the acquisition through its subsidiary TL Digital by way of slump sale on a going-concern basis. The consideration will be payable in two tranches, on transfer of clients and transition support.


Outlook


We value TEAM using DCF to arrive at a TP of INR3,400 (implied target P/E of 3x/27x on FY20/21E EPS).


For all recommendations report, click here


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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First Published on Feb 13, 2019 04:36 pm
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