Anand Rathi Brokerage suggests buying Intellect Design, target of Rs 230
Anand Rathi Securities is bullish on Intellect Design Arena and has recommended buy rating on the stock with a target price of Rs 230 in its research report dated October 01, 2015.
Anand Rathi discussed the same and said that they have begun scope on Intellect Design Arena, with a Buy rating and a target of Rs 230. Intellect has built an impressive sales team in key regions. While this would raise costs in the short run, Intellect is now beginning to see benefits in terms of greater number of deal wins and the resultant revenue acceleration. They are expecting margins to improve as non-linearity of the product business plays out.
They initiate coverage, with a target of Rs 230 (2x FY18 revenues) reflecting optimism about management execution capability and attractive market dynamics. Buy the stock with a target price of Rs 230, said AnandRathi Securities research report.
He added that Intellect delivered an impressive Q1, with 17% qoq revenue growth. It maintained its guidance of 22-26%, which now looks conservative (1% CQGR to achieve it). They reckon it can report 28% growth in FY16 and turn EBITDA positive by Q4 FY16.
AnandRathi Brokerage is a foremost full service investment bank established in 1994 offering an extensive variety of wealth management solutions for organizations, corporations, high–net worth people and families. The firm has quickly extended its footprint to more than 350 areas over India along with global presence in Hong Kong, Dubai and London. Established by Mr. Anand Rathi and Mr. Pradeep Gupta, the group today employs more than 2,500 experts throughout India and its universal offices.
Intellect Design Arena Ltd, a Polaris Group company, is a global leader in Financial Technology for Banking, Insurance and other Financial Services. A uniquely focused Products business, the $100 million Intellect Design Arena has the soul of an agile start up, with the maturity of an established specialist in designing advanced technology products for global financial platforms. Across global consumer banking (iGCB), Central Banking, Risk & Treasury Management (iRTM), Global Transaction Banking (iGTB) and Insurance (Intellect SEEC), Intellect provides full spectrum, fully integrated products that run in over 200 financial institutions, across 30 countries.