Angel Broking neutral on Infotech Enterprises

Written By Unknown on Jumat, 18 Oktober 2013 | 14.02

Oct 18, 2013, 12.26 PM IST

Brokerage house Angel Broking has maintained a 'Neutral' rating on Infotech Enterprises in its October 17, 2013 research report.

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Angel Broking neutral on Infotech Enterprises

Brokerage house Angel Broking has maintained a 'Neutral' rating on Infotech Enterprises in its October 17, 2013 research report.

Like this story, share it with millions of investors on M3

Angel Broking neutral on Infotech Enterprises

Brokerage house Angel Broking has maintained a 'Neutral' rating on Infotech Enterprises in its October 17, 2013 research report.

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Angel Broking's report on Infotech Enterprises

"Infotech Enterprises has been making investments to strengthen its product portfolio, and taking initiatives to improve its financial metrics. For FY2014, in the ENGG vertical, the Management indicated that the company sees a good deal pipeline in the aerospace business segment with new customer programs starting in 2HFY2014. The Management cited that it is seeing initial signs of recovery in the hi-tech business segment with stability coming in the top three customers. In the heavy engineering business area, the company is seeing new opportunities coming up in energy, oil & gas and mining markets. In the UT and D&A business verticals, for FY2014, Infotech is working on new service offerings to capture the opex of client budgets along with the capex portion that the company is targeting currently. Over FY2013-15E, we expect the company to post a USD and INR revenue CAGR of 6 percent and 12 percent, respectively. We expect the EBITDA margin of the company to remain in a narrow range and expect a CAGR of 11.8 percent and 10 percent in EBITDA and PAT respectively. We value the company at 9.5x FY2015E EPS of Rs 25.3, which gives us a target price of Rs 240; we maintain our Neutral view on the stock," says Angel Broking research report.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.


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