Q3FY21 Company Update - Accelya Solutions - ICICI Direct

Accelya reported Q2FY21 results (June ending). Revenues registered healthy improvement of 19.6% QoQ to Rs. 71.1 crore mainly led by recovery in airline industry. EBITDA margins improved from 18.4% in Q1FY21 to 31.7% in Q2FY21. PAT increased from Rs. 2 crore in Q1FY21 to Rs. 10.9 crore in Q2FY21 mainly due to expansion in operating margins. The company has declared a special interim dividend of Rs. 35/share. The company's CFO Gurudas Shenoy will be moving to a new role within the Accelya group (Farelogix Inc., (US)) and has stepped down as the CFO of the company. Uttamkumar Bhati, who is currently the Vice President - Finance reporting to Mr Shenoy, has been appointed as the CFO of the Company. Mr Bhati has been with the company for 16 years.

Valuation & Outlook

Accelya has been witnessing improved revenues (up 19.6% QoQ in Q2FY21) mainly led by easing of lockdowns across countries and improved volumes in the airline industry. Going forward, we expect improving trend in revenues to continue in coming quarters led by recovery of economy and improved volumes in airline segment. Hence, we upgrade the stock from HOLD to BUY with a revised target price of Rs. 1100 (17x PE on FY23E EPS) (earlier target price Rs. 1070).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Accelya_CoUpdate_Feb21.pdf

Shares of Accelya Solutions Limitd was last trading in BSE at Rs.973.9 as compared to the previous close of Rs. 951.45. The total number of shares traded during the day was 880 in over 150 trades.

The stock hit an intraday high of Rs. 976.1 and intraday low of 958.5. The net turnover during the day was Rs. 851911.

Source : Equity Bulls

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