TeamLease Services Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for TEAMLEASE, BSE:539658 TeamLease Services Ltd.

TeamLease Services Ltd.

10 Jun 2021, 12:00AM

1873.20

0.76%

TeamLease Services

Buy: TeamLease Services Ltd.

Target

ICICI Securities Limited

We expect revenues to be impacted in Q1FY22E mainly due to lockdown. However, we expect revenues to improve from Q2FY21E onwards led by a gradual recovery in the economy and improved traction in healthcare, education, e-commerce, manufacturing, essential retail and IT. This, coupled with addition of new logos and large ticket customer are expected to further drive general staffing revenues. In addition, from a structural perspective, we believe that since the pandemic has forced enterprises to variablise its cost structure, it will lead to higher outsourcing of labour making flexi...

TeamLease Services Ltd. is trading above its 50 day SMA of 1872.3

TeamLease Services Ltd.

10 Jun 2021, 12:00AM

1873.20

0.76%

Near term impact to be manageable

Buy: TeamLease Services Ltd.

Target

Motilal Oswal

TEAM delivered an in line performance in 4QFY21, with total revenue increasing 5% QoQ. Revenue growth was led by the General Staffing business (+5.5% QoQ) general staffing and NETAP trainee headcount increased by 16k (+8% QoQ). Margin in 4QFY21 were stable, despite an impressive improvement in FTE productivity (352 v/s 334 in 2Q), led by continued customer discounts. It reported an adjusted PAT of INR268m, implying a PAT margin (in line) of 2%. TEAM remains optimistic about a recovery in long term growth. We expect...

TeamLease Services Ltd. is trading below its 100 day SMA of 1920.2

TeamLease Services Ltd.

29 Jan 2021

1873.20

0.76%

TeamLease Services

Buy: TeamLease Services Ltd.

Target

ICICI Securities Limited

Formalisation, market share gains key long term drivers We believe the introduction of labour laws and e-invoicing could boost formalisation of the economy. We believe Teamlease will be a key beneficiary of the same. In addition, increase in temp staffing, consolidation of market and market share gains are other long term revenue drivers for the company. Further, gradual recovery in economy and improved traction in healthcare, education, ecommerce, manufacturing, essential retail and IT will further boost company's revenues. This, coupled with addition of new...

Number of FII/FPI investors decreased from 152 to 116 in Jun 2025 qtr

TeamLease Services Ltd.

11 Nov 2020, 12:00AM

1873.20

0.76%

TeamLease Services

Buy: TeamLease Services Ltd.

Target

ICICI Securities Limited

The company added ~7000 employees in NETAP, which means there are green shoots in manufacturing and auto. TLS expects improved demand from these two sectors, going forward. In addition, the company is seeing improved traction in consumer goods, e-commerce, telecom and some financials. This, coupled with addition of 24 new logos in the quarter, addition of large ticket customer and TLS' commentary of exiting FY21E headcount at higher levels than FY20, reversal of discounts keeps us positive on general staffing revenue growth (11% CAGR in FY20-23E). In specialised...

Number of FII/FPI investors decreased from 152 to 116 in Jun 2025 qtr

TeamLease Services Ltd.

10 Nov 2020, 12:00AM

1873.20

0.76%

Stability to come in 3QFY21

Buy: TeamLease Services Ltd.

Motilal Oswal

The General Staffing headcount remained flat on a sequential basis and was better than our expectation. Impressively, realizations remained stable despite the pressure on markups in the industry. Furthermore, FTE...

Number of FII/FPI investors decreased from 152 to 116 in Jun 2025 qtr

TeamLease Services Ltd.

02 Aug 2020

1873.20

0.76%

Better-than-expected operational metrics

Buy: TeamLease Services Ltd.

Target

Motilal Oswal

TeamLease reported revenue/EBIT/PAT growth of -9%/-4%/-9% YoY v/s our General Staffing headcount decline (10% QoQ) in 1QFY21 came in lower than initially expected (1620% QoQ). Even as the management is cautiously optimistic on prospects of growth recovery, we expect a good rebound in General Staffing headcount over the next two quarters. Our DCF-based TP of INR2,700 implies 32x FY22E Overall revenue was below our estimates as decline in Other HR Services In General Staffing, headcount declined just 10% QoQ (v/s ~15% for Quess) and revenue ~14% QoQ (v/s 22% for Quess). Across segments, margin expansion during the quarter was Realizations in General Staffing remained stable despite the markup pressure in the industry. Over the medium term, as both the central and state governments look forward to liberalizing and formalizing the labor markets, TeamLease should be among Stable realizations and aggressive cost rationalization should enable the company to report robust margin expansion in FY21E.

TeamLease Services Ltd. is trading below its 100 day SMA of 1920.2

TeamLease Services Ltd.

01 Aug 2020

1873.20

0.76%

TeamLease Services

Buy: TeamLease Services Ltd.

Recommendation Target

ICICI Securities Limited

Despite challenging times, the company gained market share in general staffing business (added 78 accounts) in Q1FY21, helping TLS to register 14.5% fall in volumes vs. expected 18-20% dip. Going forward, we expect an economic recovery and market share gains to boost the topline. This coupled with traction in NETAP due to some improvement in manufacturing & auto will further give impetus to general staffing revenues. Also, we expect a revival in demand from BFSI, logistic, healthcare and FMCG to lead to healthy growth in general staffing. Hence, we assume 10.5% CAGR in FY2022E in general staffing. In specialised staffing, we expect revenues to...

TeamLease Services Ltd. is trading above its 50 day SMA of 1872.3

TeamLease Services Ltd.

10 Jun 2020, 12:00AM

1873.20

0.76%

Strong headroom for margin expansion

Buy: TeamLease Services Ltd.

Target

Motilal Oswal

Aggressive cost rationalization measures, full-year consolidation of a higher margin entity (IMSI), and shift in mix toward apprentices provides strong headroom for margin expansion during FY21E (50bp/40bp v/s For FY21-22E, we upgrade our EPS estimate by 15% and expect ~31% PAT CAGR. However, margins in General Staffing and Specialized Staffing segments specialized staffing and other HR services (INR62m), (b) provision write-back from the previous quarters in other HR services (INR45m), (c) MAT credit write-off (INR496m), as the company is moving to the new tax regime, and (d) 80JJAA driven quarterly tax aberrations. Recovery in some verticals like logistics and manufacturing is expected to take scope for further rationalization of ~300 employees, translating into cost savings In 4QFY20, TEAMs revenue/adj.

TeamLease Services Ltd. is trading above its 50 day SMA of 1872.3

TeamLease Services Ltd.

18 Mar 2020

1873.20

0.76%

TeamLease Services

Hold: TeamLease Services Ltd.

ICICI Securities Limited

The spread of Covid-19 has led to lockdowns in many countries globally and could have adverse economic implications. In addition, the recent fall in crude prices could also have an adverse impact of fiscal health of oil producing countries. As a result, IT companies, which have considerable exposure to verticals such as oil, energy & utilities; banking & capital markets; manufacturing and travel & transport could see an adverse impact from the ongoing crisis. Companies like Wipro, Infosys in large cap and MindTree, NIIT Tech, Sonata software, Cyient, Accelya Solutions among...

TeamLease Services Ltd. is trading below its 100 day SMA of 1920.2

TeamLease Services Ltd.

30 Jan 2020

1873.20

0.76%

Margin pressure should continue

Neutral: TeamLease Services Ltd.

Motilal Oswal

30 January 2020 Robust organic revenue growth (+31% YoY) was almost entirely driven by general staffing. However, this has not translated into equally strong growth in EBITDA/PAT. Lower mark-ups in the recent contracts have been driving a secular decline in general staffing margins over the past few quarters. P/E multiples at a steep discount to Teamlease (57%), coupled with some of the recent positive developments, have led to a sharp re-rating (22%) over the past three months. Organic/overall revenue increased 31%/36% YoY, largely led by general staffing segment, while most other key segments remained modest at best Excluding the impact of Ind-AS 116 and the inorganic contribution from Allsec Technologies, EBITDA growth was weak at 5% YoY. Margin contraction within general staffing was the key overhang on overall margins. This could have been driven by lower mark-ups in large deals. Loss run-rate at Monster came down QoQ (EBITDA margin of -10% v/s -18% in 2Q).

Number of FII/FPI investors decreased from 152 to 116 in Jun 2025 qtr

Is TeamLease Services Ltd. worth buying?

88 Votes:

Buy 70.45%

Sell 21.59%

Hold 7.95%

RESEARCH REPORTS

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