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    Buy Security and Intelligence Services, target price Rs 600: Motilal Oswal

    Synopsis

    Security and Intelligence Services (India) Ltd., incorporated in the year 1985, is a Mid Cap company (having a market cap of Rs 6810.32 Crore) operating in Services sector.

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    Promoters held 73.7 per cent stake in the company as of Sept 30, 2020, while FIIs and DIIs held 12.5 per cent and 6.7 per cent and public and others 7.1 per cent.
    Motilal Oswal has buy call on Security and Intelligence Services with a target price of Rs 600. The current market price of Security and Intelligence Services (India) Ltd. is Rs 467.

    Security and Intelligence Services (India) Ltd., incorporated in the year 1985, is a Mid Cap company (having a market cap of Rs 6810.32 Crore) operating in Services sector.

    Financials
    For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 2157.86 Crore, down 0.41 % from last quarter Sales of Rs 2166.73 Crore and up 3.30 % from last year same quarter Sales of Rs 2088.86 Crore Company reported net profit after tax of Rs 107.75 Crore in latest quarter.
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    Investment Rationale
    The target value of INR 600 per share implies a target P/E multiple of 30x/23x for FY22/FY23. It views this as reasonable given its strong growth profile and unique resilience to macroeconomic shocks.

    Promoter/FII Holdings
    Promoters held 73.7 per cent stake in the company as of Sept 30, 2020, while FIIs and DIIs held 12.5 per cent and 6.7 per cent and public and others 7.1 per cent.
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