Sharekhan has given Buy recommendation for Birlasoft with a target price of Rs. 580 in its research report issued on Mar 17, 2022
Sharekhan’s research report on Birlasoft
Birlasoft’s revenue growth momentum is likely to stay strong in Q4FY2022, led by healthy traction in CMT micro-vertical, ramp-up of deals and strong execution. EBITDA margins would remain stable in Q4 despite headwinds. Strong deal TCVs (net new deal wins in last 12 months rose 73%), healthy logo additions, revival in enterprise solutions business and healthy client mining should help it accelerate its revenue growth in FY2023E. EBITDA margin to expand in FY2023E. Margin headwinds including higher inflation in onsite wages and rising travel costs would be offset by strong growth, pyramid management and currency tailwinds.
We maintain a Buy on Birlasoft with a PT of Rs. 580, given its strong earnings growth potential, robust deal intake, sharp focus in micro-verticals and robust demand.
At 16:01 hrs Birlasoft was quoting at Rs 443.75, down Rs 0.10, or 0.02 percent.
It has touched an intraday high of Rs 452.65 and an intraday low of Rs 442.00.
It was trading with volumes of 53,528 shares, compared to its thirty day average of 155,881 shares, a decrease of -65.66 percent.
In the previous trading session, the share closed up 0.25 percent or Rs 1.10 at Rs 443.85.
The share touched its 52-week high Rs 585.85 and 52-week low Rs 225.30 on 10 January, 2022 and 19 March, 2021, respectively.
Currently, it is trading 24.26 percent below its 52-week high and 96.96 percent above its 52-week low.
Market capitalisation stands at Rs 12,402.64 crore.