Yes Securities neutral on One97 Communications, target price: Rs 600

Yes Securities has neutral call on with a target price of Rs 600. The current market price of One97 Communications is Rs 610.15.

One97 Communications, incorporated in the year 2000, is a Small Cap company (having a market cap of Rs 40869.11 Crore) operating in Services sector.

One97 Communications key Products/Revenue Segments include Sale of services and Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 2140.20 Crore, up 6.29 % from last quarter Total Income of Rs 2013.60 Crore and up 39.57 % from last year same quarter Total Income of Rs 1533.40 Crore. Company has reported net profit after tax of Rs -397.10 Crore in latest quarter.

The company’s top management includes Mr.Vijay Shekhar Sharma, Mr.Douglas Feagin, Mr.Ravi Chandra Adusumalli, Mr.Mark Schwartz, Ms.Pallavi Shardul Shroff, Mr.Ashit Lilani, Mr.Neeraj Arora, Mr.Madhur Deora. Company has Price Waterhouse Chartered Accountants LLP as its auditors. As on 31-12-2022, the company has a total of 65 Crore shares outstanding.

Investment Rationale
The share of Financial Services in overall revenue continues to rise even as there were some negative one-offs for the quarter. There were a variety of factors aiding both contribution margin as well as EBITDA margin, with EBITDA before ESOP cost turning positive.

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 31-Dec-2022, while FIIs owned 6.68 per cent, DIIs 1.87 per cent.