SPA Securities is bullish on NIIT Technologies has recommended sell rating on the stock with a target price of Rs 740 in its research report dated March 01, 2018.
SPA Securities' research report on NIIT Technologies
NIIT Tech reported steady 2.6%/12.4% QoQ growth in revenue/PAT in Q3FY18. New management based across geographies is expected to result in client additions across the segments. Management has indicated strong deal pipeline in coming quarters. We expect steady double digit revenue growth in FY19 on account of growth across BU's, strong executable pipeline and large order wins. All the positives have already factored in price, hence we recommend to sell the stock with target price of INR 740.
Outlook
We anticipate its rupee revenue/PAT to grow at a CAGR of 7%/14%, respectively, over FY17- 19E. We value NIIT Tech at ~14x of its FY19E EPS to arrive at sell rating with target price of INR 740/share for next 12-15 months.For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Read More