Buy NIIT Learning Systems; target of Rs 550: Sharekhan

Sharekhan is bullish on NIIT Learning Systems has recommended buy rating on the stock with a target price of Rs 550 in its research report dated January 31, 2024.

Broker Research

February 06, 2024 / 10:55 IST

Buy

live

bselive
nselive

Volume

Todays L/H

Sharekhan's research report on NIIT Learning Systems

NIIT learning Systems’ (NLSL) reported revenue stood at Rs. 391.3 crore, up 2.5% q-o-q/up 7.7% y-o-y, nearly in line with our estimates of Rs. 390.4 crore, aided largely by Lifesciences & Healthcare and BFSI verticals. EBITDA margin fell 51bps q-o-q to 23% but was above our estimate of 22.4%. The company added two new MTS customers and signed four renewals along with one scope expansion in Q3FY24. The company expects sequential growth for FY25, with the rate of growth expected to increase over time and reach 20% growth in the midterm and long term. We believe NLSL is well-positioned to increase its market share in the outsourced L&D market through steadily increasing customer additions along with increased wallet share from existing customers through scope expansions.

Outlook

Hence, we maintain Buy on NLSL with an unchanged PT of Rs. 550. At the CMP, the stock trades at 23.7/18.9 x its FY25/26E EPS.

For all recommendations report, click here