Buy SIS; target of Rs 510: Motilal Oswal

Motilal Oswal is bullish on SIS recommended buy rating on the stock with a target price of Rs 510 in its research report dated July 27, 2023.

Broker Research

July 31, 2023 / 21:56 IST

Buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on SIS

SIS (SECIS) reported an in-line performance with revenue up 11.1% YoY and its EBITDA margin standing at 4.7%. Despite a weak macro environment, SIS delivered healthy growth in 1QFY24. The management commentary remained strong. Cross-selling opportunities in India Security and FM business, coupled with an increase in minimum wages, and longer-term tailwinds from sector consolidation, are expected to position SIS for a 14.5% revenue CAGR (MOSLe) over FY23-25. SIS India business is expected to deliver a strong revenue CAGR of 19%/25% in the India Security/FM business for FY23-25. Conversely, its Australia business is expected to witness a modest 4% CAGR over the next two years.

Outlook

We have largely maintained our EPS estimates on the stable quarter. Given the multi-dimensional opportunity, we value SIS at INR510/share (18% upside), derived by assigning 8x forward EV/EBITDA multiple to International business (in line with global peers) and DCF to India business. We reiterate our BUY rating on the stock.

For all recommendations report, click here