NIIT Technologies Ltd - Anand Rathi

- Focus on Travel & transportation segment, creating a niche for itself
- Non linear revenues key towards improved and sustained margins
- Executable order book over the next 12 months now stands at US$248 million along with strong clientele
- Consistent dividend payout ratio
- Strengthening management - appointing Sudhir Chaturvedi from Infosys in a new position of Chief Operating officer

Valuations

The company is also investing in cloud computing, analytics, enterprise mobility & collaboration which have huge growth opportunities going forward. Also improving government domestic projects will add on to the overall improvement in the company.

At CMP also the stock looks attractive on strong management, good client base and creating niche in the segment of travel and transportation which is helping to get the current valuations for the stock and still looking attractive. If we give current valuations 9.5x PE for FY15E earnings we arrive at a target of Rs. 470 which is almost a 34% upside from the current price.

Source : Equity Bulls

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