Sharekhan has given Buy on the stock with a revised price target (PT) of Rs. recommendation for Birlasoft with a target price of Rs. ekhan is bullish on Birlasoft has recommended buy on the stock with a revised price target (PT) of Rs. 580 in its research report issued on Jan 27, 2022
The company’s enterprise solutions business is expected to grow at a faster rate in FY2023E compared to FY2022 on the back of strong demand in enterprise business andhigher spends on legacy modernisation by clients. Further, prices are getting revised on the back COLA adjustments (3-4%) and new demand (5-10%). We forecast that the company would register a 16% and 21% CAGR, respectively, in revenue and earnings over FY2022-FY2024.At CMP, the stock trades at 23x/19x its FY2023E/FY2024E earnings. We remain positive on the stock considering strong net cash position of Rs. 1,135 crore (9% of market capitalisation), strong partnership with hyperscalers, increasing net new deal wins, robust demand from enterprise customers and strong FCF generation. Hence, we maintain a Buy rating on Birlasoft with price target (PT) of Rs. 580.