Take Solutions Ltd. share price target

In Q1FY20, Take Solutions Ltd. reported sales revenues of Rs 583 cr (up 25% YoY & 9% QoQ) and EBIDTA of Rs 110 cr (up 18% YoY & 8% QoQ). EBIDTA margin at 18.8% remained stable on quarterly basis whereas fell 110 bps on yearly basis due to contribution from new acquisitions that yields lower margin.

Take Solutions (TAKE) reported a revenue growth of 18% during Q4FY19 to Rs. 5339 Mn vs. Rs. 4539 Mn during Q4FY18. Sequentially, TAKE revenue wasup by 2.4%.Revenues from new acquisitions Dataceutics and KAI Research would be included from Q1FY20 onwards due to delay in regulatory approvals.

In Q4FY19, Take Solutions Ltd. reported sales revenues of Rs 534 cr (up 18% YoY & 2% QoQ), EBIDTA of Rs 81 cr (down 10% YoY & 8% QoQ) with EBIDTA margin declined by 470 bps due to one-off restructuring expense, acquisitions & currency fluctuations.

In Q3FY19, Take Solutions Ltd. reported sales revenues of Rs 522 cr (up 28% YoY & 1% QoQ), EBIDTA of Rs 88 cr (up 11% YoY & down 16% QoQ) with EBIDTA margin at 16.9% (down 270 bps YoY) led by increase in employee cost, one off expense owing to acquisitions & currency fluctuations.

Stable Revenue growth: During Q3FY19, TAKE reported revenue of Rs. 5216 Mn, up 27.8% YoY and 1.1% QoQ. In $ terms, TAKE reported a flattish sequential growth.

Incorporated in 2000, Take Solutions Limited(TSL) is a globally recognized technology service provider with distinct expertise across Life Sciences (LS) and select niches in Supply Chain Management (SCM). We initiate coverage with BUY rating with a target price of Rs 178 i.e. 31% upside

Solid Revenue Growth with Healthy Margins: Take Solutions reported operating revenue growth of 10.34% on QoQ basis and 39.08% YoY. In USD terms, it posted a growth of 5.54%/27.7% on QoQ/YoY basisrespectively.

Gaining Market Share to be the leader in Value fashion: The company iseyeing on capturing the biggest market share in organized retail. As a strategy, it is operating in a cluster based philosophy in the states of UP, Bihar, Uttarakhand and Jharkhand where t is the leader in value segment.

Good performance: Take Solutions (TAKE) reported good set of numbers for Q1 FY19 with a revenue growth of 32% YoY; while EBITDA was up 41% YoY, EBITDA margin at 20% was up 120 bps YoY and flat on QoQ basis.

Strong Revenue Growth Driven by Clinical Business: Take Solutions delivered a revenue growth of 28% YoY in Q4FY18 and 18% for FY18. In USD terms company reported a growth of 22% which is in line with the management guidance. For FY18, the clinical business was up by 42%. The growth in clinical business was mainly driven by the shift in order book towards larger contracts.

Life Sciences Vertical Delivers Robust Performance; Growthto be Fuelled by Organic & Inorganic Route; Revenue from Life Sciences vertical was recorded at ~ US$ 197 Mn on a TTM basis, marking a growth of 24.9% YoY. The company's order book under the LifeSciences vertical stood strong at US$ 151 Mn.

Company Continues on the Growth Trajectory; Evolving Regulatory Environment Poses an Attractive Opportunity: Revenue for Take Solutions in FY17 was recorded at Rs. 13,446 Mn registeringa robust growth of 30.5% YoY. The company witnessed a slower pace of growth during Q4FY17. For Q4FY17, Take Solutions recorded revenue of Rs. 3,555 Mn, marking a sequential growth of 3.6%. EBITDA margins saw some pruning in FY17 and were recorded at 19.0% compared to 20.7% in FY16. Order Pipeline for TakeSolutions at the end of FY17 stood strong at US$ 144 Mn, marking a significant improvement from FY16 order book of US$ 103 Mn.

ICICI Securities Ltd | Retail Equity Research We attended the analyst meet of Take Solutions (Take), an IT company focused on niche verticals like life sciences (LS). The company highlighted the pharma R&D; landscape and how technology would evolve across drug development life-cycle processes like clinical, regulatory and safety. Pharma R&D; outsourcing, which is currently at ~US$30-33 billion, could grow 7-10% in coming years. The biosimilars market is currently at ~US$3 billion and is expected to grow 7-10x in coming years. New...

Company continued its strategy to focus and grow in niche segments for improved long term growth and margins. During the year, the Company divested its investments in Applied Clinical Intelligence and TAKE Business Cloud. It also made a strategic acquisition of Ecron Acunova in the last quarter of FY 2016 to further strengthen its offerings in life science domain. Acquisition of Ecron Acunova- Bodes well for company to increase its addressable market size Currently TAKE is providing functional services and software solutions related to clinical data management, regulatory compliance and drug safety, which constitutes just 35% of the pharma R&D; outsourcing. Prior to acquisition of EA, it had marginal presence in clinical trial studies, which is 60% of...

Buy Take Solutions Ltd at CMP and Add on Dips of Rs. 148 - Rs. 155 for the Sequential Targets of Rs. 202 - Rs. 233

Growing life sciences business to improve overall margins and drive growth in future: Currently, life sciences business contributes to around 70% of the company's revenue. In Q3FY16, the growth in the Life Sciences order book has resulted in an increase of 20.7% over the previous year in total order book of US$ 80.5 Mn. Take Solutions recently consolidated all their life sciences operations under a new brand Navitas. This will help them further to focus more on life sciences business. We expect the high margin life sciences business which has an EBITDA margin in the range of 25-30% to continue its healthy growth and drive the firm's top line and bottom line.