Intellect Design Arena Ltd. share price target and research reports

Name: Latest research reports of Intellect Design Arena Ltd. authored by HDFC Securities and published by - Trendlyne research reports.
Item: Intellect Design Arena Ltd.
Rating: 5
Author: HDFC Securities

Latest analyst research reports with target prices and PDF download for INTELLECT, BSE:538835 Intellect Design Arena Ltd.

Intellect Design Arena Ltd.

03 May 2019

1040.75

1.15%

Intellect Design Arena (4QFY19): Deal wins driving growth. Maintain BUY

Buy: Intellect Design Arena Ltd.

Target

HDFC Securities

Intellect's investment in sales effort and R&D is yielding results. Deal wins have been robust led by higher acceptance of Intellect products (iGTB and IDC). The company won 12 large transformational deals in FY19. The deal funnel stands at healthy USD 508mn with 122 opportunities. Cloud partnerships with global cloud leaders will help scale SaaS revenue, which is of annuity nature and higher margin. We maintain our positive stance based on (1) Huge addressable market opportunity (2) Highly-rated and digital-ready product portfolio, (3) Healthy order book, and (4) Traction in large deal wins (iGTB). We estimate USD revenue growth of 15.8/16.2% for FY20/21E. Risk to our thesis includes slowdown in deal wins, increase in R&D and SG&A investments, and global slowdown. We maintain BUY on Intellect on inline 4QFY19. The order backlog remains impressive (+38% YoY), large deal wins in advanced market is reflecting product acceptance. Our TP is Rs 313, assigning 2.0x EV/rev multiple to FY21E rev.

Intellect Design Arena Ltd. has gained 31.72% in the last 6 Months

Intellect Design Arena Ltd.

29 Jan 2019, 08:16AM

1040.75

1.15%

Intellect Design Arena (3QFY19): Deal traction. Maintain BUY

Buy: Intellect Design Arena Ltd.

HDFC Securities

Maintain BUY with a TP of Rs 300, assigning EV/revenue multiple of 2.0x on Dec-20E revenue. Intellect Design Arena (INDA) posted muted quarter both on the revenue and margin front. Revenue stood at USD 52.4mn (vs our est. of USD 53.7mn), down 3.4% QoQ and 2.8% CC. Revenue fall was led by lower licence revenue (-25% QoQ, higher base effect). Order backlog remains healthy at Rs 13.88bn (+11% QoQ), which provides growth visibility.

Intellect Design Arena Ltd. has gained 31.72% in the last 6 Months

Intellect Design Arena Ltd.

26 Oct 2018

1040.75

1.15%

Intellect Design Arena (2QFY19): Growth acceleration. Maintain BUY

Buy: Intellect Design Arena Ltd.

Target

HDFC Securities

Maintain BUY with a TP of Rs 300, based on 2.2x FY20E EV/revenue multiple. Intellect Design Arena (INDA) posted strong numbers both on the revenue and margin front. Revenue stood at USD 54.3mn (vs our est. of USD 48mn), up 21.7% QoQ and 30% YoY. Revenue out-performance was due to large deal wins leading to strong Licence growth (+137% QoQ). Order backlog remains healthy at Rs 12.50bn (+5.0% QoQ), which provides growth visibility.

Intellect Design Arena Ltd. is trading below its 100 day SMA of 1047.1

Intellect Design Arena Ltd.

26 Jul 2018

1040.75

1.15%

Intellect Design Arena (1QFY19): Minor blip, recovery ahead. Maintain BUY

Buy: Intellect Design Arena Ltd.

Target

HDFC Securities

Maintain BUY with a TP of Rs 285, based on 2.2x FY20E EV/rev multiple. Intellect Design Arena (INDA) posted weak numbers both on the revenue and margin front. Revenue stood at USD 44.6mn (lower than our est. of USD 47.4mn), down 6.5% QoQ but up 19.2% YoY. Revenue miss was due to shift of two large deal closures to next quarter with licence component of USD 2.6mn. Strong order backlog growth of 14.4% QoQ to Rs 11.90bn (excluding GeM project) provides revenue visibility.

Intellect Design Arena Ltd. is trading below its 100 day SMA of 1047.1

Intellect Design Arena Ltd.

07 May 2018

1040.75

1.15%

Intellect Design Arena (4QFY18): Robust deal wins & execution. Maintain BUY

Buy: Intellect Design Arena Ltd.

Target

HDFC Securities

Maintain BUY with a TP of Rs 275, based on 2.2x FY20E EV/rev multiple (2.0x earlier). Intellect Design Arena (INDA) posted robust 4QFY18 both on the revenue and margin front. Revenue stood at USD 47.7mn (higher than our est. of USD 43.6mn), up 14.1% QoQ and 27.6% YoY. Growth was driven by higher license component (+42.3% YoY). The company has a strong order backlog of Rs 10.40bn (excluding GeM project) which is ~79% of FY19E revenue.

Intellect Design Arena Ltd. has gained 31.72% in the last 6 Months

Intellect Design Arena Ltd.

31 Jan 2018

1040.75

1.15%

Intellect Design Arena (3QFY18): Future bright. Maintain BUY

Buy: Intellect Design Arena Ltd.

Target

HDFC Securities

Maintain BUY with a TP of Rs 230, based on 2.0x Dec-19 EV/rev multiple (~75% discount to Temenos multiple). Intellect Design Arena (INDA) posted flat revenue and stable margin performance. Revenue stood at USD 41.8mn (in-line with our est. of USD 41.7mn), up 0.2% QoQ and 24.6% YoY. Growth was flat this quarter due to high licence component present last quarter. The company has a strong order backlog of Rs 9.51bn (excluding GeM project) which is ~77% of FY19E revenue. Adjusting for one time SG&A; expenses of Rs 50mn, EBITDA margin stood at 7.8% (-34bps QoQ). There is non-linearity in the business and margins will expand with growth in licence revenue.

Intellect Design Arena Ltd. is trading below its 100 day SMA of 1047.1

Intellect Design Arena Ltd.

10 Nov 2017

1040.75

1.15%

Intellect Design Arena (2QFY18): Design'd to step up. Maintain BUY

Buy: Intellect Design Arena Ltd.

Target

HDFC Securities

Maintain BUY with a TP of Rs 190, based on 2.0x Sep-19 EV/rev multiple (~70% discount to Temenos multiple). Intellect Design Arena (INDA) posted robust top-line growth in 2QFY18, with margins expanding for the third consecutive quarter. Revenue stood at USD 41.8mn (vs our est. of USD 38mn), up 11.6% QoQ and 21.0% YoY. This was led by 16 go-lives and contribution of new deal wins (Bangkok Bank, LIC and Utkarsh). EBITDA margin stood at 8.1%, +144bps QoQ, led by revenue growth, stable SG&A; and higher margin licence revenue.

Intellect Design Arena Ltd. has gained 31.72% in the last 6 Months

Intellect Design Arena Ltd.

15 Aug 2017

1040.75

1.15%

Intellect Design Arena (1QFY18): Strong deal pipeline. Maintain BUY

Buy: Intellect Design Arena Ltd.

Target

HDFC Securities

Maintain BUY with TP of Rs 180, based on 2.0x FY19 EV/rev multiple (~75% discount to Temenos multiple). Intellect Design Arena (INDA) posted muted top-line growth in 1QFY18, but efficient cost management in the last two quarters provided some relief to the cash burn. USD revenue stood at USD 37.4mn (vs our estimate of USD 38mn), up 0.1% QoQ and 21.7% YoY. This cannot be termed as bad, considering 1Q is a seasonally weak quarter and 4Qs base was high. EBITDA margin stood at 6.7%, +44bps QoQ, (second quarter of positive EBITDA), led by lower SG&A; and R&D; expenses. Investment in the business has almost reached the threshold, and revenue growth will lead to margin expansion.

Intellect Design Arena Ltd. is trading below its 100 day SMA of 1047.1

Intellect Design Arena Ltd.

04 May 2017

1040.75

1.15%

Intellect Design Arena (4QFY17): Back on track. Maintain BUY

Buy: Intellect Design Arena Ltd.

Target

HDFC Securities

Intellect Design Arena (INDA) posted strong Q4 numbers, with a 11.3% QoQ jump ( 11.9% CC) in USD revenues (USD 37.4mn vs est of USD 35.0mn). The growth in revenue was owing to deal wins, higher licence fees and 16 go-lives in the quarter.

Intellect Design Arena Ltd. is trading above its 200 day SMA of 934.1

Intellect Design Arena Ltd.

13 Feb 2017

1040.75

1.15%

Intellect Design Arena (3QFY17): Short-term slump. Maintain BUY

Buy: Intellect Design Arena Ltd.

Target

HDFC Securities

Intellect Design Arena (INDA) disappointed this quarter with a 2.7% QoQ (-2.4% CC) drop in US$ revenues (US$ 33.6mn vs est of US$ 37.0mn) and poor cost management. The dip in revenues was largely due to the deferral of two large deals, as banks in the US and Europe are largely keeping their spends on hold. Despite amplified pre-sales efforts, the sales cycle is taking longer to fructify.

Intellect Design Arena Ltd. has gained 31.72% in the last 6 Months

Is Intellect Design Arena Ltd. worth buying?

273 Votes:

Buy 82.05%

Sell 12.82%

Hold 5.13%