Goal: ₹792
CMP: ₹831.40
Regardless of the seasonality influence in BFSI (-1.3 per cent q-o-q) and shutting down influence of few purchasers in TMT (-3.5 per cent q-o-q), firm reported a income of $157 million, up by 0.7/8.6 per cent q-o-q/y-o-y in CC phrases. Seasonality was offset by development in Manufacturing (6.5 per cent q-o-q) and healthcare verticals (3.2 per cent q-o-q).
Administration is constructive to develop within the subsequent quarter backed by the very best order bookings on this quarter ($205.3 million) and their account mining efforts.. Administration acknowledged the deal pipeline is wholesome and strong. This enchancment was broad primarily based throughout geos and huge offers are nonetheless in pipeline.
Nevertheless, administration appears to be cautious on the demand surroundings with the prevailing uncertainty round international macros. Having mentioned that, administration additionally acknowledged discretionary spend depth to be nearing the pre-covid ranges which signifies higher spending surroundings on consumer’s aspect.
We count on, firm to proceed its development momentum backed by the revival (BFSI) in demand zone. Nevertheless, with current run up within the value, we downgrade the inventory to Maintain rolling into FY27 at goal value of ₹792 (22x FY27E EPS) v/s earlier TP of ₹760.
