Birlasoft Q4 Results Review - Strong Tailwind In ERP Key Trigger: IDBI Capital

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IDBI Capital Report

Despite a strong Q3 performance, Birlasoft Ltd. reported strong 1.6% QoQ growth in constant currency terms. The company on full year basis has also reported healthy YoY growth (up 7.1% YoY) better than many peers.

Further, despite macro challenges and flat total contract , the company aspires to drive industry leading growth in FY25E.

We believe this will be led by US$100 million deal ramp up in Q1 FY25E and large deals won in banking, financial services and insurance and life science.

Further, we believe traction in ERP (33% of company’s revenues), growth in rest of world and uptick in BFSI is expected to drive Birlasoft’s growth (built in 13% CAGR over FY24-FY26E).

We have marginally tweaked our earnings per share downwards by ~1% and target price to Rs 780 (26 times FY26E EPS) from Rs 785.

However, the recent fall in stock prompt us to upgrade the stock from Hold to Buy.

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IDBI Capital Birlasoft Q4FY24 Results Review.pdf

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Also Read: Birlasoft Q4 Results: Profit Surges Over 11%, Revenue Rises Amid IT Slowdown

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