Majesco Limited - 3QFY17 Result Update - Disappointing Performance Continues - Reliance Securities

While near-term revenue headwinds are expected to persist, we believe the key underlying fundamentals of the industry - including greater third-party software adoption by insurers - remain on track. Majesco has entered into several strategic alliances with leading systems integrators like IBM for a joint go-to-market approach, which should boost revenue growth. These alliances have already won a few cloud deals. However, given near-term headwinds, we cut our target revenue multiple by 10% to 1.8x from 2x. Trimming down our revenue estimates by 2-8%, we reiterate our BUY recommendation on the stock with a revised Target Price of Rs546 (from Rs660 earlier).

Source : Equity Bulls

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