Inventurus Knowledge Solutions Ltd., a recently listed IT outsourcing firm, received a 'hold' rating on its stock as Jefferies initiated coverage. It placed a target price of Rs 1,575 per share.
Inventurus Knowledge Solutions Ltd., a recently listed IT outsourcing firm, received a 'hold' rating on its stock as Jefferies initiated coverage. It placed a target price of Rs 1,575 per share.
The brokerage expects the company to achieve a 14% compounded annual growth rate in dollar revenues in two years to $412 million, driven by increasing outsourcing and integrated offerings. This, combined with improving operating margins and debt reduction, should support a 34% earnings per share growth.
However, with pricey valuations at a 50-90% premium to peers, the upside to IKS stock is limited, Jefferies said in a note.
Inventurus Knowledge Solutions offers tech-enabled outsourcing solutions to US-based healthcare providers to help reduce their operating costs. As of December, the company has over 750 clients. It delivers its services from India, US, Canada and Australia.
Jefferies said spending in this space will grow 8% annually to $323 billion by 2028. Low barriers to entry may keep the market fragmented.
Margin Expansion
The brokerage said Inventurus Knowledge Solutions is likely to expand its Ebitda margins by five percentage points in FY25 to 29%, mainly due to lower subcontracting costs.
"We expect its margins to expand further by 470 bps to 33% by FY27, driven by inherent non-linearity in IKS' operations and ongoing offshoring of AQuity's operations," the note said.
This, along with deleveraging of balance sheet will lower interest costs over two years, which in turn should spur earnings growth further to 34% CAGR during the period — the highest among its peer set.
Inventurus Knowledge Solutions shares closed 12% lower at Rs 1,447 on Monday. The stock has declined 26% since market debut in December.
Sign Up with Google
RECOMMENDED FOR YOU
Buy, Sell Or Hold: JB Chemicals, L&T, Hyundai Motor, Suzlon Energy — Ask Profit
Sep 18, 2025
Buy, Sell Or Hold: CDSL, Indus Towers, MCX, Garden Reach, Ambuja Cements — Ask Profit
Sep 16, 2025
Buy, Sell Or Hold: Ola Electric, NBCC, RIL, BHEL, NTPC Green — Ask Profit
Sep 12, 2025
Buy, Sell Or Hold: ICICI Bank, United Spirits, Paytm, Shriram Finance, Anant Raj, Power Grid — Ask Profit
Aug 29, 2025
POPULAR
