Buy Intellect Design Arena; target of Rs 920 Sharekhan

Sharekhan is bullish on Intellect Design Arena has recommended buy rating on the stock with a target price of Rs 920 in its research report dated December 11, 2023.

Broker Research

December 12, 2023 / 14:33 IST

Buy

Sharekhan's research report on Intellect Design Arena

Company secured large destiny deal wins with major bank in India (cash management system) and a leading banking group in Central and Eastern Europe (Core Banking systems) built on eMACH.AI recently. Margin trajectory to improve significantly in FY25E and FY26E as there will be no contribution from lower margin GeM revenues and due to contributions from higher margin large destiny deals. Despite BFSI centric revenue profile the Company’s revenues have been resilient owing to well-diversified offerings across License and SaaS besides diversification of revenues across markets.

Outlook

We maintain Buy on Intellect Design with revised PT of Rs 920 (higher PT reflects the roll forward of target multiple to FY26E) as traction from eMACH.AI gains momentum and due to improving funnel.

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