Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Research

| More

Result Update: NIIT Technologies Ltd - ACCUMULATE - TP Rs.1083 - Kotak

Posted On: 2018-05-08 08:24:17

NIIT Tech, in the past four consecutive quarters, has delivered a steady beat on revenue expectations. The company has been consistently winning large deals (> TCV USD 20mn) against Tier I vendors which is aiding strong revenue visibility.

Key Highlights

- NIIT Tech reported revenue growth of 5.4% in dollar terms v/s our estimate of 3.3%. EBITDA margins at 18% was in line with our estimates. The company has shown consistent improvement in margins in past four quarters and remains positive on further improvement in margins, going forward. PAT increased by 13.9% YoY to Rs.861mn.

- Management has guided for a strong FY19 and expects organic CC revenue growth to be in at least double digit. Also, margins are expected to expand further aided by strong deal momentum.

- NIIT Tech continues to win USD100mn + deal during the quarter with 12 month executable order rising to USD 339mn after having stagnated at USD 320mn for past few quarters. Company signed seven large deals during this fiscal (2 in 1HFY18 and 5 in 2HFY18) and is confident of signing at least 7+ large deals in FY19.

Valuation & outlook

- We have upgraded our revenue estimate for FY19/FY20E given the strong execution in FY18 with healthy commentary for FY19, and believe company is set for a turnaround from FY18 onwards. We expect USD revenues to grow at CAGR of 12.7% over FY18-20. We expect margins to improve further over FY19/20. With continued outperformance, optimistic outlook for FY19 and company entering into double digit organic growth trajectory we ascribe a higher multiple of 15x. We maintain ACCUMULATE with a target price of Rs.1082 (Rs.798 earlier).

Shares of NIIT TECHNOLOGIES LTD. was last trading in BSE at Rs.1028.35 as compared to the previous close of Rs. 1027.9. The total number of shares traded during the day was 252884 in over 5851 trades.

The stock hit an intraday high of Rs. 1085 and intraday low of 987.65. The net turnover during the day was Rs. 259568273.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

Parag Milk Foods 4QFY2018 Result Update - Angel Broking

GMM Pfaudler Limited 4QFY2018 Result Update - Angel Broking

Result Update: Gabriel India Ltd - BUY - TP Rs.193 - Kotak

Result Update: Apollo Tyres - ACCUMULATE - TP Rs.300 - Kotak

Result Update: Havells India Ltd - SELL - TP Rs.500 - Kotak

Result Update: Chennai Petroleum Corporation Ltd - BUY - TP Rs.373 - Kotak

Result Update: Shankara Building Products Ltd - ACCUMULATE - TP Rs.2017 - Kotak

Result Update: Sun TV Network Ltd - ACCUMULATE - TP Rs.964 - Kotak

Result Update: Akzo Nobel India Ltd - BUY - TP Rs.2150 - Kotak

Syndicate Bank Q4 loss widens to Rs. 2195.12 crores

Result Update: Mahindra Holidays & Resorts India Ltd - BUY - TP Rs.390 - Kotak

Result Update: The Phoenix Mills Ltd - ACCUMULATE - TP Rs.676 - Kotak

Result Update: Blue Dart Express Ltd - BUY - TP Rs.4050 - Kotak

Result Update: Zee Entertainment Enterprises Ltd - ACCUMULATE - TP Rs.623 - Kotak

Result Update: Asian Paints Ltd - ACCUMULATE - TP Rs.1320 - Kotak

Result Update: Voltamp Ltd - BUY - TP Rs.1349 - Kotak

Result Update: Kajaria Ceramics Ltd - BUY - TP Rs.648 - Kotak

India's original E-Commerce Poster Boy sells out to Wal-Mart: Angel Broking

Result Update: Carborundum Universal Ltd - BUY - TP Rs.420 - Kotak

Result Update: Indocount Industries Ltd - BUY - TP Rs.103 - Kotak

Result Update: GE Shipping Company - SELL - TP Rs.350 - Kotak

Technology: CTSH results: on balance negative

Result Update: Greaves Cotton Ltd - BUY - TP Rs.153 - Kotak

Result Update: IRB Infrastructure Developers Ltd - ACCUMULATE - TP Rs.292 - Kotak

Result Update: Venky's India Ltd - REDUCE - TP Rs.3750 - Kotak

Result Update: Castrol India Ltd - BUY - TP Rs.213 - Kotak

Result Update: Radico Khaitan - ACCUMULATE - TP Rs.421 - Kotak

Q4 FY18 Result Update: Marico Ltd - ACCUMULATE - TP Rs.334 - Kotak

Q4 FY18 Result Update: Adani Port and SEZ - BUY - TP Rs.485 - Kotak

Q4 FY18 Result Update: Kansai Nerolac Paints Ltd - BUY - TP Rs.600 - Kotak

Q4 FY18 Result Update: Hero MotoCorp - BUY - TP Rs.4553 - Kotak

Q4 FY18 Result Update: Hindustan Zinc - REDUCE - TP Rs.318 - Kotak

Q4 FY18 Result Update: Container Corporation of India - BUY - TP Rs.1550 - Kotak

Q4 Result Update: Jindal Stainless Hisar Ltd - BUY - TP Rs.318 - Kotak

Ultratech Cement - Q4FY18 Result Update - Arihant Capital Markets Ltd

Company Update: Va Tech Wabag Ltd - BUY - TP Rs.672 - Kotak

K P Energy Ltd ties up for development of 300 MW wind power project

Matrimony.com Ltd - Initiating Coverage - Angel Broking

ACC Ltd Q1CY18 Result Update Rating - ACCUMULATE - Arihant Capital Markets

Company Update: Cummins India Ltd - BUY - TP Rs.862 - Kotak

FY18 Result Update: Tata Sponge Iron Ltd - REDUCE - TP Rs.1172 - Kotak

National highways: utilization and monetization - Kotak

Initiating Coverage: Parag Milk Foods Limited - Angel Broking

Company Update: NALCO - BUY - TP Rs.100 - Kotak

Company Update: Chennai Petroleum Corporation Ltd - BUY - TP Rs.390 - Kotak

Company Visit Note: Genus Power Infrastructure Ltd - BUY - TP Rs.79 - Kotak

Chhota (to) Mota Ideas Update: Venky's India Ltd - SELL - TP Rs.3700 - Kotak

Company Update: Moil Ltd - BUY - TP Rs.260 - Kotak

Bhansali Engineering Polymers Ltd - Buy - HEM Securities

Company Update: Kansai Nerolac Paints Ltd - BUY - TP Rs.600 - Kotak



Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2018