Hold NIIT Technologies; target of Rs 575: ICICI Direct

ICICI Direct’s research report on NIIT Technologies
US$ revenues declined 0.6% QoQ to $ 109.9 million (including one - off gain of US$ 4 million in Q4FY17) in line with our expectation of $109.2 million. While excluding one - off gain, revenue grew 3.2% sequentially. In constant currency, revenues grew 1.4% sequentially on account of seasonality in GIS Rupee revenues declined 4.8% QoQ to | 708.9 crore and w ere above our | 703.7 crore estimate.

Outlook

we now  expect its rupee revenue ,  PAT to grow at a CAGR 7.3% ,  9.8 % , respectively , in FY17 - 19E.  Consequently, we value NTL at  ~ 1 1 x  its FY 19 E EPS of |  52 . 3 to arrive at a revised target price of | 575 /share.

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