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ICIC
I S
ecurit
ies –
Retail E
quit
y R
esearch
Result
Update
July 24, 2019
CMP: | 1342 Target: | 1345 ( 0%) Target Period: 12 months
NIIT Technologies (NIITEC)
HOLD
Healthy performance…
NIIT Technologies reported a healthy performance with revenue, margins
above our estimates. US$ revenues grew 0.4% QoQ to $138.5 million (vs.
our expectation of $135.4 million) while EBITDA margins ex one-off came in
at 16.9% (vs. our estimate of 15.5%). Revenue growth was led by growth in
insurance (4% QoQ) and transportation vertical (4.1% QoQ). Further, digital
(34% of revenues) growth of 13.8% QoQ, 40.3% YoY supported revenue
growth. Going forward, based on order book momentum, healthy deal
pipeline, Wishworks acquisition, we expect revenue growth of 11.4% CAGR
in FY19-21E to surpass growth in most mid-tiers.
Expect double digit revenue growth in FY19-21E
Going by the commentary, the company’s top five clients are facing some
headwinds on account of softness in BFS space (largely in capital markets).
This is reflected in top five clients, which declined 6.5% QoQ in the quarter.
On the positive side, insurance and travel vertical are doing well on the back
of deal wins. Further, order intake has been consistently showing healthy
position. Order intake grew 3% sequentially to $175 million implying book
to bill ratio of 1.26x. On the deal front, the company won three deals of
US$10 million+ each with two in insurance space and one in travel space.
From the year perspective, the company expects to maintain healthy
revenue growth in FY20E mainly led by healthy deal pipeline, hiring of lateral
leadership in the last quarter and new logo acquisitions. We incorporate
Wishworks acquisition into our estimates. This has led to upwards revision
in FY20E revenue growth estimates.
Better-than-expected margins excluding one-off
Wage hike and visa cost impacted EBITDA margins by 240 bps and 90 bps,
respectively. This was partially offset by positive impact of 90 bps due to
Ind-As 116 and 120 bps up-tick in utilisation. One time impact of 240 bps on
account of ex-gratia payouts and M&A related charges led to reported
margins of 14.4%. Excluding this one-off, EBITDA margins for the quarter
were at 16.9%. The company aims to achieve EBITDA margin of 18% for
FY20E although it did not provide the respective guidance for the same. We
believe the company will be able to achieve the target mark led by revenue
growth, high margin digital segments and benefit of Ind-As 116. Hence, we
expect EBITDA margin of 18%, 18.2% in FY20E and FY21E, respectively.
Valuation & Outlook
We like NIIT Tech based on digital revenue trajectory, healthy deal wins and
better growth profile than peers. However, near term concerns in top five
clients on account of softness in BFS vertical prompt us to maintain our
HOLD recommendation with a revised target price of | 1345 per share (PE
of 16x on FY21E EPS).
Key Financial Summary
s\
Financials FY17 FY18 FY19 FY20E FY21E CAGR (FY19-21E)
Net Sales 2,802 2,991 3,676 4,117 4,587 11.7%
EBITDA 485 501 645 741 835 13.8%
EBITDA Margins (%) 17.3 16.8 17.6 18.0 18.2
Net Profit 228 280 398 462 515 13.8%
EPS (|) 40.8 45.6 65.7 74.3 83.9
P/E 32.6 29.4 20.1 18.3 16.0
RoNW (%) 14.8 15.8 19.9 19.8 19.7
RoCE (%) 18.7 19.4 24.2 23.5 23.8
*P&L actual, BS, CF calculated; Source: Company, ICICI Direct Research
Particulars
Particular Amount
Market Capitalization (| Crore) 8,125.5
Total Debt (| Crore) 6.4
Cash & Investments (| Crore) 410.8
EV (| Crore) 7,721.1
52 week H/L 1425 / 1031
Equity capital 61.2
Face value 10.0
Key Highlights
Order intake grew 3% QoQ to $175
million implying book to bill ratio of
1.26x. Executable order book over
next 12 months grew 1.3%
sequentially to US$395 million
Better-than-expected EBITDA margin
Maintain HOLD recommendation
with revised target price of | 1345
Research Analyst
Devang Bhatt
Deepti Tayal
ICICI Securities | Retail Research 2
ICICI Direct Research
Result Update | NIIT Technologies
Exhibit 1: Variance Analysis
Q1FY20 Q1FY20E Q1FY19 YoY (%) Q4FY19QoQ (%) Comments
Revenue 962.7 941.6 824.9 16.7 972.2 -1.0
Dollar revenue growth led by healthy growth in insurance and
transportation vertical. Further, digital (34% of revenues)
supported revenue growth
Employee expenses 637.4 630.8 543.7 17.2 629.3 1.3
Gross Margin 325.3 310.7 281.2 15.7 342.9 -5.1
Gross margin (%) 33.8 33.0 34.1 -30 bps 35.3 -148 bps
SG&A expenses 186.4 164.8 150.5 23.9 172.2 8.2
EBITDA 138.9 145.9 130.7 6.3 170.7 -18.6
EBITDA Margin (%) 14.4 15.5 15.8 -142 bps 17.6 -313 bpsAdjusting for one-off, EBITDA margin came in at 16.9%, better
than our expectation
Depreciation & amortisation 40.1 29.2 31.2 28.5 30.3 32.3
EBIT 98.8 116.8 99.5 -0.7 140.4 -29.6
EBIT Margin (%) 10.3 12.4 12.1 -180 bps 14.4 -418 bps
Other income (less interest) 17.2 10.1 20.9 -17.7 4.7 266.0
PBT 121.7 126.9 120.4 1.1 139.5 -12.8
Tax paid 31.8 31.1 30.0 6.0 29.6 7.4
PAT 87.7 91.4 85.8 2.2 105.5 -16.9
Key Metrics
Closing employees 10,297 10,200 9,764 5.5 10,263 0.3
Addition of 275 employees on account of Wishworks
acquisition and reduction of 363 employees due to GIS
business disinvestment
Attrition (%) 12.9 11.7 10.1 280 bps 12.2 70 bps
Overall utilisation (%) 80.5 80.0 80.1 40 bps 79.3 120 bps
Average $/| 69.5 69.5 66.4 4.7 70.5 -1.4
Source: Company, ICICI Direct Research
Exhibit 2: Change in estimates
FY19 Comments
(| Crore) Current Old New % Change Old New % Change
Revenue 3,676 4,089 4,117 0.7 4,554 4,587 0.7Revision of FY20E revenue estimates taking into
account impact of Whishworks acquisition
EBITDA 645 720 741 3.0 811 835 3.0
EBITDA Margin (%) 17.6 17.6 18.0 37 bps 17.8 18.2 37 bpsRevision in revenue growth estimates and Ind-As
116 leads to change in margin estimates
PAT 403 467 456 -2.4 535 515 -3.7
EPS (|) 65.7 76.1 74.3 -2.4 87.2 83.9 -3.7
FY21EFY20E
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 3
ICICI Direct Research
Result Update | NIIT Technologies
Conference Call Highlights
Revenue outlook – As anticipated, divestment of GIS business (~4%
of revenue) impacted revenue growth but was partly aided by 15-16
days acquisition consolidation of Wishworks (| 10.8 crore). Further,
the said acquisition would lead to incremental contribution for 2.5
months in Q2FY20E
Margin trajectory – The company aims to achieve EBITDA margin of
18% for FY20E although it did not provide the respective guidance
for the same. Divestment of high margin GIS business would be
offset by Wishworks acquisition, which has similar margin profile
(EBITDA margin of 21%)
Vertical wise commentary – The company indicated that BFS growth
was muted in the quarter due to weakness in capital markets
segment. The same is reflected in top five client’s decline. On the
other hand, travel & transport and insurance are doing better on the
back of deal wins. The same is reflected in growth in EMEA region.
The company’s verticals (insurance, travel) are still not impacted by
the ongoing Brexit related issues
Digital business - Digital business now contributing 34% to revenues
grew 13.8% QoQ and strong 40.3% YoY in this quarter. The
acquisition of Whishworks will also augment the company’s digital
revenues
Improving deal wins – The company’s order intake has been
consistently showing a healthy position. Order intake grew 3%
sequentially to $175 million while the executable order book over
the next 12 months grew 1.3% sequentially to US$395 million. The
company added 11 new customers of which five were from the US,
three from RoW and Europe each. The company won three deals of
US$10 million+ each with two in insurance space and one in travel
space
Client position – The company added 11 new clients in the quarter.
In terms of client metrics, the client size increased by one to 91.
Revenues from top five customers (27% of revenues) declined 6.5%
QoQ mainly on account of softness in BFS space within this client
category. Top 6-10 customers (39% of revenues) was up 0.4%
sequentially
Employee update - Employee strength was at 10,297 with net
addition of 34 employees in the quarter. This includes addition of
275 employees from Wishworks and reduction of 363 employees
due to GIS divestment business. Attrition rate increased 70 bps QoQ
to 12.9% in the quarter while utilisation increased 120 bps
sequentially to 80.5%
ICICI Securities | Retail Research 4
ICICI Direct Research
Result Update | NIIT Technologies
Key Metrics
Exhibit 3: Geography-wise split up
Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20
Revenue by geography (%)
America 48.0 50.0 49.0 49.0 49.0 49.0
EMEA 32.0 32.0 34.0 33.0 33.0 35.0
RoW 20.0 18.0 17.0 18.0 18.0 16.0
Growth QoQ (%)
America 0.5 6.0 3.2 3.0 2.3 0.4
EMEA 11.7 1.7 11.9 0.0 2.3 6.5
RoW 4.7 -8.4 -0.5 9.1 2.3 -10.8
Source: Company, ICICI Direct Research
Exhibit 4: Vertical wise split up
Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20
Revenue by verticals (%)
Banking & financial services 16.0 17.0 16.0 15.0 16.0 16.0
Insurance 28.0 29.0 29.0 30.0 28.0 29.0
Transport 26.0 27.0 27.0 26.0 27.0 28.0
Others 30.0 28.0 28.0 29.0 29.0 27.0
Growth QoQ (%)
Banking & financial services -1.4 8.1 -0.9 -3.4 9.1 0.4
Insurance 12.8 5.4 5.3 6.6 -4.5 4.0
Transport 0.9 5.7 5.3 -0.8 6.2 4.1
Others 4.7 -5.0 5.3 6.7 2.3 -6.5
Source: Company, ICICI Direct Research
Exhibit 5: Service-wise split up
Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20
Revenue by service mix (%)
SI & PI 4.0 3.0 4.0 4.0 4.0 1.0
IP Assets 7.0 7.0 6.0 6.0 5.0 6.0
Managed Services 19.0 19.0 18.0 18.0 17.0 17.0
Application Development & Management 66.0 68.0 68.0 68.0 70.0 72.0
BPO 4.0 3.0 4.0 4.0 4.0 4.0
Growth QoQ (%)
SI & PI -16.2 -23.7 40.4 3.0 2.3 -74.9
IP Assets 4.7 1.7 -9.7 3.0 -14.7 20.5
Managed Services 4.7 1.7 -0.2 3.0 -3.4 0.4
Application Development & Management 6.3 4.8 5.3 3.0 5.3 3.3
BPO 4.7 -23.7 40.4 3.0 2.3 0.4
Source: Company, ICICI Direct Research
Growth in EMEA due to growth in insurance, travel
verticals and supported by ~15 days contribution
from Wishworks acquisition. Decline in RoW mainly
due to divestment of GIS business
Decline in others business due to divestment of GIS
business
Decline in SI & PI business due to divestment of GIS
business
ICICI Securities | Retail Research 5
ICICI Direct Research
Result Update | NIIT Technologies
Exhibit 6: Client & human resource matrix es
Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20
Client metrics
Between 1 to 5 million 60 63 63 62 66 66
Between 5 to 10 million 13 14 18 20 16 17
Above 10 million 7 7 7 8 8 8
Headcount, Utilization, Attrition
Total Employees 9,423 9,764 10,025 10,144 10,263 10,297
Utilization 79.5 80.1 80.4 79 79.3 80.5
Attrition 10.5 10.1 10.8 11.7 12.2 12.9
Source: Company, ICICI Direct Research
Increase of one client in $5-10 million category. Total
11 new clients added in the quarter
ICICI Securities | Retail Research 6
ICICI Direct Research
Result Update | NIIT Technologies
Financial story in charts
Exhibit 7: Digital contribution as percentage of overall revenue continues to inch up
Source: Company, ICICI Direct Research
Exhibit 8: Dollar revenues may grow at 11.4% CAGR in FY19-21E
Source: Company, ICICI Direct Research
Exhibit 9: Change in margin estimates for FY20E and FY21E
Source: Company, ICICI Direct Research
18.0%19.0% 19.0%
21.0% 21.0%
23.0%
25.0%26.0%
27.0%28.0%
29.0%30.0%
34.0%
10.0%8.8%
-0.4%
18.9%
-0.6%
14.0%
11.0%
8.9%
5.7%
9.2%
6.7%5.8%
13.8%
-2.0%
8.0%
18.0%
28.0%
Q1FY17
Q2FY17
Q3FY17
Q4FY17
Q1FY18
Q2FY18
Q3FY18
Q4FY18
Q1FY19
Q2FY19
Q3FY19
Q4FY19
Q1FY20
%
Digital as a % of revenue Growth, QoQ
388 411416
464
124 131 135 138
528
139
588
655
1.1
6.0
1.3
11.3
13.114.1
15.6
12.913.9
11.4 11.4 11.4
0
5
10
15
20
0
100
200
300
400
500
600
700
FY15
FY16
FY17
FY18
Q1FY19
Q2FY19
Q3FY19
Q4FY19
FY19
Q1FY20
FY20E
FY21E
%$ million
Dollar revenue Growth, YoY
14.6
17.3 17.316.8
15.8
18.018.6
17.6 17.6
14.4
18.0 18.2
10
13
16
19
22
FY15
FY16
FY17
FY18
Q1FY19
Q2FY19
Q3FY19
Q4FY19
FY19
Q1FY20
FY20E
FY21E
%
EBITDA margin
ICICI Securities | Retail Research 7
ICICI Direct Research
Result Update | NIIT Technologies
Exhibit 10: PAT trend
Source: Company, ICICI Direct Research
Exhibit 11: One year forward rolling PE
Source: Company, ICICI Direct Research
Exhibit 12: Valuation
Sales Growth EPS Growth PE EV/EBITDA RoNW RoCE
(| cr) (%) (|) (%) (x) (x) (%) (%)
FY17 2,802 4.5 40.8 (5.7) 32.6 15.3 14.8 18.7
FY18 2,991 6.8 45.6 11.9 29.4 14.7 15.8 19.4
FY19 3,676 22.9 65.7 43.9 20.1 11.1 19.9 24.2
FY20E 4,117 12.0 74.3 13.1 18.3 9.3 19.8 23.5
FY21E 4,587 11.4 83.9 13.0 16.0 7.9 19.7 23.8
Source: Company, ICICI Direct Research
194
264250
280
86112 100 106
403
88
456
515
0
100
200
300
400
500
600FY15
FY16
FY17
FY18
Q1FY19
Q2FY19
Q3FY19
Q4FY19
FY19
Q1FY20
FY20E
FY21E
| c
rore
PAT
0
200
400
600
800
1000
1200
1400
Price 15 12 9 6 3
ICICI Securities | Retail Research 8
ICICI Direct Research
Result Update | NIIT Technologies
Exhibit 13: Recommendation History vs. Consensus
0.0
20.0
40.0
60.0
80.0
100.0
100
400
700
1,000
1,300
1,600
1,900
Jul-
19
May-
19
Apr-
19
Feb-
19
Jan-
19
Nov-
18
Oct-
18
Aug-
18
Jun-
18
May-
18
Mar-
18
Feb-
18
Dec-
17
Nov-
17
Sep-
17
Aug-
17
Jun-
17
May-
17
Mar-
17
Jan-
17
Dec-
16
Oct-
16
Sep-
16
Jul-
16
Jun-
16
(%
)
(|)
Price Idirect target Consensus Target Mean % Consensus with BUY
Source: Bloomberg, Company, ICICI Direct Research
Exhibit 14: Top 10 Shareholders
Rank Name Latest Filing Date% O/S Position (m) Change (m)
1 Hulst (B V) 28-Jun-19 34.9% 21.6 1.1
2 Baring Private Equity Asia Ltd. 17-May-19 30.6% 18.9 18.9
3 HDFC Asset Management Co., Ltd. 31-May-19 8.9% 5.5 0.1
4 UTI Asset Management Co. Ltd. 30-Jun-19 3.0% 1.9 0.0
5 Goldman Sachs Asset Management International 31-Mar-19 2.0% 1.3 -0.3
6 Dimensional Fund Advisors, L.P. 31-May-19 2.0% 1.2 0.0
7 Matthews International Capital Management, L.L.C. 31-Mar-19 1.6% 1.0 0.2
8 The Vanguard Group, Inc. 30-Jun-19 1.5% 0.9 0.0
9 Polaris Capital Management, LLC 31-Mar-19 1.4% 0.9 0.0
10 APG Asset Management N.V. 31-Mar-19 1.4% 0.8 0.4
Source: Reuters, ICICI Direct Research
Exhibit 15: Recent Activity
Investor name Value Shares Investor name Value Shares
Baring Private Equity Asia Ltd. 354.9m 18.9m Scantech Evaluation Services, Ltd. -272.2m -14.5m
Hulst (B V) 22.1m 1.1m Thadani (Vijay K) -40.9m -2.2m
Al Mehwar Commercial Investments LLC 12.2m 0.6m Pawar (Rajendra Singh) -40.9m -2.2m
Lazard Asset Management, L.L.C. 12.1m 0.6m Ocean Dial Asset Management Limited -13.2m -0.7m
Acadian Asset Management LLC 11.7m 0.6m JPMorgan Asset Management U.K. Limited -7.3m -0.4m
Buys Sells
Source: Reuters, ICICI Direct Research
Exhibit 16: Shareholding Pattern
(in %) Dec-18 Mar-19 Jun-19
Promoter 30.65 30.51 33.91
Public 69.35 69.49 66.09
Others 0.00 0.00 0.00
Total 100.00 100.00 100.00
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 9
ICICI Direct Research
Result Update | NIIT Technologies
Financial summary
Exhibit 17: Profit and loss statement | crore
FY18 FY19 FY20E FY21E
Total operating Income 2,991 3,676 4,117 4,587
Growth (%) 6.8 22.9 12.0 11.4
COGS (employee expenses) 1,918 2,391 2,676 2,973
S,G&A expenses 572 640 700 780
Total Operating Expenditure 2,490 3,031 3,376 3,752
EBITDA 501 645 741 835
Growth (%) 3.4 28.7 14.9 12.7
Depreciation 127 125 173 193
Other Income 30 48 54 68
PBT 404 568 623 710
Total Tax 95 140 153 174
Adjusted 'PAT 280 403 456 515
Growth (%) 12 44 13 13
Adjusted EPS (|) 45.6 65.7 74.3 83.9
Exceptional loss - 6 (6) -
Reported PAT 280 398 462 515
Reported EPS (|) 45.6 65.7 74.3 83.9
Growth (%) 11.9 43.9 13.1 13.0
Source: Company, ICICI Direct Research
Exhibit 18: Cash flow statement | crore
FY18 FY19 FY20E FY21E
Profit before Tax 404 568 623 710
Add: Depreciation 127 125 173 193
(Inc)/dec in Current Assets (83) (192) (140) (148)
Inc/(dec) in CL and Provisions - 134 58 75
Taxes paid (111) (140) (153) (174)
CF from operating activities 382 441 512 588
(Inc)/dec in Investments (561) - - -
(Inc)/dec in Fixed Assets (89) (115) (128) (143)
Others 6 48 54 68
CF from investing activities (270) (67) (74) (75)
Issue/(Buy back) of Equity 7 - - -
Inc/(dec) in loan funds 1 - - -
Dividend paid & dividend tax (81) (156) (176) (199)
CF from financing activities (74) (156) (176) (199)
Net Cash flow 38 218 262 314
Exchange difference 17 - - -
Opening Cash 408 418 637 898
Closing Cash 418 637 898 1,213
Source: Company, ICICI Direct Research
Exhibit 19: Balance sheet | crore
(Year-end March) FY18 FY19 FY20E FY21E
Liabilities
Equity Capital 62 62 62 62
Reserve and Surplus 1,713 1,960 2,240 2,556
Total Shareholders funds 1,774 2,022 2,301 2,618
Total Debt 18 18 18 18
Provisions 74 74 74 74
Minority Interest / Other non CL 219 238 258 278
Total Liabilities 2,085 2,351 2,651 2,988
Assets
Net Block 636 626 581 532
Capital WIP 1 1 1 1
Total Fixed Assets 637 627 582 532
Goodwill 243 243 243 243
Deferred tax assets 123 123 123 123
Debtors 591 726 814 906
Other Current Assets 248 305 358 413
Cash 418 637 898 1,213
Current Investments 365 365 365 365
Total Current Assets 1,623 2,034 2,436 2,898
Trade payables 145 179 200 223
Other current liabities 369 453 494 537
Short term provisions 71 87 82 92
Total Current Liabilities 585 719 776 851
Net Current Assets 1,039 1,315 1,659 2,046
Application of Funds 2,085 2,351 2,651 2,988
Source: Company, ICICI Direct Research
Exhibit 20: Key ratios | crore
(Year-end March) FY18 FY19 FY20E FY21E
Per share data (|)
Adjusted EPS (Diluted) 45.6 65.7 74.3 83.9
DPS 15.0 21.7 24.5 27.7
Cash per Share 68.1 105.1 144.5 197.5
BV per share (Diluted) 288.9 333.9 370.2 426.4
Operating Ratios (%)
EBITDA Margin 16.8 17.6 18.0 18.2
PBT Margin 13.5 15.5 15.1 15.5
PAT Margin 9.4 11.0 11.1 11.2
Debtor days 72 72 72 72
Creditor days 18 18 18 18
Return Ratios (%)
RoE 15.8 19.9 19.8 19.7
RoCE 19.4 24.2 23.5 23.8
RoIC 28.7 38.6 41.0 45.6
Valuation Ratios (x)
P/E (Adjusted) 29.4 20.1 18.3 16.0
EV / EBITDA 14.7 11.1 9.3 7.9
EV / Net Sales 2.5 1.9 1.7 1.4
Market Cap / Sales 2.7 2.2 2.0 1.8
Price to Book Value 4.6 4.0 3.6 3.1
Solvency Ratios
Debt/EBITDA 0.0 0.0 0.0 0.0
Debt / Equity 0.0 0.0 0.0 0.0
Current Ratio 1.4 1.4 1.5 1.5
Quick Ratio 1.4 1.4 1.5 1.5
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 10
ICICI Direct Research
Result Update | NIIT Technologies
Exhibit 21: ICICI Direct coverage universe (IT)
CMP M Cap
(|) TP(|) Rating (| Cr) FY18 FY19 FY20E FY18 FY19 FY20E FY18 FY19 FY20E FY18 FY19 FY20E FY18 FY19 FY20E
Cyient (INFENT) 487 475 Hold 5,371 36.0 42.4 38.6 13.3 11.3 12.4 8.2 7.3 7.2 21.4 21.4 17.7 17.3 18.7 15.2
Eclerx (ECLSER) 607 860Reduce 3,532 72.9 60.0 63.1 12.7 15.5 14.7 8.0 9.1 9.2 28.2 21.5 24.8 24.1 16.5 18.9
Firstsource (FIRSOU) 49 60 Buy 3,502 4.8 5.4 5.9 10.7 9.4 8.6 8.8 7.2 6.2 13.0 14.0 15.7 13.9 13.9 13.8
HCL Tech (HCLTEC) 1,016 1,190 Hold 146,833 62.6 74.7 76.7 17.3 14.5 14.1 12.5 10.1 9.1 27.4 26.5 26.0 23.8 24.5 22.5
Infosys (INFTEC) 786 845 Buy 335,118 32.3 35.4 39.4 23.8 21.7 19.5 16.2 14.8 13.0 30.9 32.9 32.8 22.5 23.7 24.3
MindTree (MINCON) 690 635Reduce 11,313 34.3 45.9 37.7 20.1 15.0 18.3 14.3 9.7 10.0 24.9 29.8 24.4 20.8 22.8 17.0
L&T Intotech (LTINFO) 1,449 1,710 Hold 26,301 64.7 87.3 84.1 23.4 17.4 18.0 20.8 12.8 12.1 36.0 40.4 33.0 28.8 31.0 25.1
NIIT Tech (NIITEC) 1,342 1,345 Hold 8,125 45.6 65.7 74.3 29.4 20.1 18.3 14.7 11.1 9.3 19.4 24.2 23.5 15.8 19.9 19.8
Persistent (PSYS) 565 650 Hold 5,119 40.5 44.0 48.7 15.8 14.6 13.2 9.1 7.1 6.4 19.8 20.5 20.5 15.2 15.0 14.9
TCS (TCS) 2,106 2,080 Hold 790,125 67.4 83.8 88.8 31.2 25.0 23.7 23.0 18.9 17.2 37.6 43.8 43.2 29.6 34.4 33.9
Tech M (TECMAH) 663 845 Hold 67,723 42.8 47.7 51.4 17.6 15.8 14.6 13.4 9.5 8.2 21.5 23.6 23.2 20.2 21.2 19.8
Wipro (WIPRO) 263 315 Buy 160,796 12.7 14.9 16.4 21.1 17.9 16.2 13.8 11.1 10.0 16.9 17.8 17.3 16.6 15.8 15.9
EV/EBITDA (x)P/E (x)
Sector / Company
RoE (%)RoCE (%)EPS (|)
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 11
ICICI Direct Research
Result Update | NIIT Technologies
RATING RATIONALE
ICICI Direct endeavors to provide objective opinions and recommendations. ICICI Direct assigns ratings to its
stocks according to their notional target price vs. current market price and then categorizes them as Buy, Hold,
Reduce and Sell. The performance horizon is two years unless specified and the notional target price is defined
as the analysts' valuation for a stock
Buy: >15%
Hold: -5% to 15%;
Reduce: -15% to -5%;
Sell: <-15%
Pankaj Pandey Head – Research [email protected]
ICICI Direct Research Desk,
ICICI Securities Limited,
1st Floor, Akruti Trade Centre,
Road No 7, MIDC,
Andheri (East)
Mumbai – 400 093
ICICI Securities | Retail Research 12
ICICI Direct Research
Result Update | NIIT Technologies
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I/We, Devang Bhatt, PGDBM, Deepti Tayal, MBA, Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the
subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. It is also confirmed that above mentioned
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