Hold Accelya Solutions; target of Rs 1070: ICICI Direct
ICICI Direct recommended hold rating on Accelya Solutions with a target price of Rs 1070 in its research report dated October 28, 2020.
October 30, 2020 / 04:26 PM IST
ICICI Direct's research report on Accelya Solutions
Accelya reported dismal Q1FY21 (June ending) results mainly led by exposure to airline sector. Revenues fell 5.1% QoQ, 46.7% YoY to Rs 59.2 crore mainly led by higher refund income in previous quarter. EBIT margins were at 3.4% vs. 4.5% in Q4FY20. Employee cost increased in the quarter due to restoration of salaries (compared to salary cuts in previous quarter). PAT declined 42.5% QoQ to Rs 2.0 crore mainly led by higher tax expenses. We have introduce FY23E estimates in the current quarter.
Hence, we revise our target price downwards to Rs 1070/ share (17x FY23E EPS, 3.5x FY23E sales) and downgrade the stock from BUY to HOLD recommendation.
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