Hold Intellect Design Arena; target of Rs 640: ICICI Direct

ICICI Direct's research report on Intellect Design Arena

We attended the analyst meet of Intellect Design Arena (Intellect). The company highlighted its key product features and its cloud & API ready products. Intellect also highlighted that it is seeing healthy traction across its product categories in corporate banking, retail and insurance segment. Currently top three products yielding value are digital transaction banking, liquidity and Quantum Central Banking. IDC, payments and digital lending are also expected to drive growth. The company is currently undergoing a phase of monetisation of products and in second phase will witness monetisation of big data analytics and artificial intelligence. This, coupled with cost control, sustainable capex and improving working capital bodes well for the company’s financials.

Outlook

However, the recent run up in stock price prompts us to downgrade the stock from BUY to HOLD with a revised target price of Rs 640 (5x FY23E price/sales and 21x PE on FY23E EPS) (earlier target price was Rs 455).

For all recommendations report, click here