Sharekhan has given Buy recommendation for Birlasoft with a target price of Rs. 580 in its research report issued on Nov 30, 2021
Sharekhan’s research report on Birlasoft
Birlasoft has transformed its business significantly from enterprise business to enterprise digital solutions in the last few years and is well-placed to capitalise opportunities by leveraging its product and platform-based solutions. Management remains confident of delivering decent revenue growth in Q3FY22 despite fewer billable days, led by strong broad-based demand, recovery in enterprise solutions and ramp-up of a new deal. Non-enterprise business to maintain growth momentum. The management aspires to clock $1 billion in annual revenues by FY2025 against current annual revenue run-rate of $548 million, of which $800-850 million would come from organic, while the rest would arise from inorganic activity. It also eyes EBITDA margins of 18% by FY2025.
We maintain a Buy on Birlasoft with a PT of Rs. 580, given its strong earnings growth potential, healthy traction in deal ACVs, sharp focus on micro-verticals approach and robust demand.