Coforge Ltd. share price target

The exit of COO Sudhir Chaturvedi a significant negative In a recent development, NITEC's COO Mr Sudhir Chaturvedi resigned to pursue other interests. Mr Chauturvedi had joined NITEC in August 2013 from Infosys and was chiefly responsible for the company's turnaround over the last three years. After joining, he had laid out a strategy of: (1) cross-selling IMS, (2) expanding the BFSI business in the US, (3) securing a leadership position in the transport vertical, and (4) reducing the low-margin government business. The strategy was executed to perfection; over FY13-16, IMS grew...

In rupee term, rupee revenues declined 2.3% QoQ to | 670.7 crore, below our 0.7% QoQ decline and | 680.1 crore estimates (average rupee realised: 66.38 vs. 66.9 assumed). At 15.1%, EBITDA margins declined 307 bps QoQ, below our 140...

In 1QFY17: Revenue share by service mix: Application Development & Maintenance (66%), System integration & Package implementation (3%), Managed service (18%), IP assets (7%) & BPO (5%) segments. Vertical mix: BFSI (42%), Transportation (32%), Manufacturing, Med & others (26%). Geography mix: America (48%), EMEA (32%), and ROW (20%). Company has total headcount of 9,022; Active clients: 74, Utilization...

Brexit and deal wins dampen recovery process: Revenue disappointment continues: NITEC’s revenue declined by 2.8% QoQ to USD99m v/s expectation of 1.1% growth. This was led by seasonality in GIS, declining revenue in the Travel vertical and contraction in NITL, which it attributed to decision making delays caused by uncertainties surrounding the Brexit referendum.Adjusting for the 1Q disappointment and the fact that sustenance/expansion of margins should be a function of revival of revenue growth, Motilal Oswal cut their earnings by 8.8/5.4% for FY17/18E; thus lowering the target price to INR530. Neutral.

Trendlyne has 9 reports on NIITTECH updated in the last year from 4 brokers with an average target of Rs 593.8. Brokers have a rating for NIITTECH with 1 price downgrade and 3 price upgrades in past 6 months.

Targets double-digit growth in FY17 and beyond; M&A; remains a focus area Despite weak exit rate in FY16 and expected softness in Q1FY17, NIIT Technologies is confident of achieving double-digit growth in FY17 and improve it further going forward. It would focus on Insurance (21% of revenue), BFS (19% of revenue) and Transport (32% of revenue) verticals to drive growth. It...

ICICI Securities Ltd | Retail Equity Research We attended NIIT Technologies' (NTL) analyst meet wherein the management shared its growth blueprint. The company highlighted its...

The prime agenda for NITEC over the last year has been to reshape the organization. While overall revenue growth was 13.1% YoY, international revenue grew by 17.1%. To aid this shift, the company increased its thrust on the US,...

ICICI Securities Ltd | Retail Equity Research NIIT Tech reported soft Q4FY16 quarterly earnings. Revenue growth was in line with estimates while margins were ahead...

EBITDA margins at 18.4% were slightly higher than our estimates of 18.2%. Margin expansionof20bpswasduetoreducedSG&A;(40bps). BFSI up 3.5% qoq (led by strong 9.9% growth in BFS); Government grew 31.1% qoq ...