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 shoppers 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 optimistic to develop within the subsequent quarter backed by the best order bookings on this quarter ($205.3 million) and their account mining efforts.. Administration said 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 setting with the prevailing uncertainty round international macros. Having mentioned that, administration additionally said discretionary spend depth to be nearing the pre-covid ranges which signifies higher spending setting on shopper’s facet.
We count on, firm to proceed its development momentum backed by the revival (BFSI) in demand zone. Nevertheless, with latest run up within the worth, we downgrade the inventory to Maintain rolling into FY27 at goal worth of ₹792 (22x FY27E EPS) v/s earlier TP of ₹760.
