BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
IDBI Capital Report
Birlasoft Ltd. reported 4.5% QoQ constant currency growth excluding on off from Invacare which is better than large cap and mid cap peers. In addition, considering the company's ability to grow in 3-3.5% QoQ range indicates that it is taking the right step to turnaround the business.
Further, Birlasoft has won a large deal of $100 milion which will contribute ~3% to the company's top line in FY25E. This coupled with improving macros and discretionary spend will lead to a sustained growth in long run.
Further, Birlasoft aims to maintain 15.5%-17% margin for medium term leading to revenue and profit after tax compounded annual growth rate of 10.5% & 22% over FY23-FY25E.
We have revised our margin estimates upwards leading to earning per share revision of 0.9% and 6.3% for FY24E and FY25E.
Hence, we maintain our 'Buy' rating on the stock with a revised target price of Rs 635 (25 times FY25E earning per share).
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
