Buy Intellect Design Arena; target of Rs 1050: Sharekhan

Sharekhan is bullish on Intellect Design Arena has recommended buy rating on the stock with a target price of Rs 1050 in its research report dated January 25, 2024.

Broker Research

January 31, 2024 / 08:51 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Sharekhan's research report on Intellect Design Arena

Intellect Design Arena Ltd (Intellect) reported revenue of Rs. 634.3 crore in Q3FY24, up 1.7%/14.3 on q-o-q and y-o-y basis respectively, missing our estimates of Rs. 642.7 crore. Growth was aided by License and AMC revenues partially offset by weakness in platform revenues. EBITDA margin improved by 81 bps q-o-q on improved revenues to 20.6% but lagged our estimates of 22% The funnel continues to be strong at Rs. 8020 crores, up 6.6% q-o-q/14.1% y-o-y. Destiny deals improved to 79 in Q3FY24. The company reported 14 deals wins, up 27.3%/133.3% on q-o-q and y-o-y basis respectively.

Outlook

We maintain Buy on Intellect Design with revised PT of Rs. 1050 on steady destiny deal wins, healthy funnel and increasing traction from eMach.ai. At the CMP the stock trades at 24.5/20x its FY25/ FY26E EPS.

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