Datamatics - Recent Correction Provides Good Entry Point: HDFC Securities
Datamatic’s strong order inflow, stable financial profile extensive experience of promoters in IT, ITeS industry gives us comfort
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HDFC Securities Retail Research
Datamatics Global Services Ltd. caters to a number of industry segments like banking and finance, insurance, manufacturing, telecom and retail and publishing.
Company is focused on emerging business and expanding its reach by partnership and acquisitions. Datamatics has continued to focus its efforts towards offering a comprehensive suite of customised, smart and innovative solutions, powered by artificial intelligence and machine learning, robotics, internet of things, cloud and mobility.
We think the company could get better opportunity in automation, robotics and artificial intelligence because of an early entry in the segment.
Datamatic’s strong order inflow, stable financial profile led by steady revenue growth, strong liquidity profile, healthy internal accrual generation, comfortable capital structure and extensive experience of promoters in IT and ITeS industry gives us comfort.
It could get less impacted by the current slowdown affecting some midcap IT stocks given the spread of its service, geographies and reasonable valuations.
Also the stock has corrected well over the past six weeks providing a good entry point.
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