Hinduja Global Solutions (HGS) is a leading global BPO with (1) Marquee customers and a sticky client base, (2) A large global delivery pool, (3) Strong domain strength in the Healthcare and Insurance verticals and (4) Negligible H-1B-associated risks. Despite workforce redundancy challenges plaguing the BPO industry on the back of increased automation and digitisation, the aggregate demand is expected to grow in mid single-digits.

BUY Hinduja Global Solutions Ltd between CMP at Rs. 612 - 550 for the targets of Rs. 690 - 777

Q3 being a seasonally strong quarter for the company, HGS had reported strong set of numbers. Net sales grew by 5.6% came in at Rs 956.3 cr in Q3FY17 vs. Rs.905.2 cr in Q2FY17. Higher utilization levels have led to increase in the sales of the company. Utilization levels of the company have improved to 88.2% in Q3FY17 vs. 85% in Q2FY17. Total employees of the company remains flat at 43750 employees in Q3FY17 vs. 43793 employees in Q2FY17. Increase in sales led to improvement in the operating margins of the company. Ebitda margins improved by 131.8 bps QoQ to 12.0% in Q3FY17 vs. 10.7% in Q2FY17.After 7...