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Buy Birlasoft, target price Rs 330: Emkay Research

Emkay Research has a buy call on with a target price of Rs 330 for a time frame of 12 months. The current market price of Birlasoft Ltd. is Rs 297.8 .

Birlasoft Ltd, incorporated in the year 1990, is a Small Cap company with a market cap of Rs 8210.44 Crore, operating in IT Software sector.

Birlasoft Ltd’s key Products/Revenue Segments include Software Development Charges for the year ending 31-Mar-2020.

Investment Rationale

According to Emkay Research, revenue growth for the company was broad-based and was led by lifesciences (4 per cent QoQ), manufacturing (3.7 per cent), energy & utilities (3.2 per cent) and BFSI (1 per cent). Management expects all verticals to register growth in FY22, with manufacturing and lifesciences verticals leading growth, it added.

said, deal intake remained strong in Q4, with a Total Contract Value (TCV) of $325 million (net new $162 million), taking total deal intake to $888 million for FY21 (up ~33 per cent YoY). With strong deal intake and a healthy deal pipeline ($1.2 billion vs. $0.6 billion in Q4 FY20), Birlasoft expects acceleration in revenue growth, and is confident of delivering double-digit revenue growth in FY22.

Financials

For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 907.95 Crore, up 1.29 per cent from last quarter’s Total Income of Rs 896.36 Crore and down 1.95 per cent from last year same quarter’s Total Income of Rs 925.98 Crore. Company has reported a net profit after tax of Rs 98.98 Crore in latest quarter.

(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)

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