Advice Price= 407
Target Price=560
Stop Loss =310
Holding Period=11
Incorporated in 1995, Birlasoft is a multi-shore business
application IT services provider with a presence in the
United States, Europe, Asia-Pacific and India.
Effective Jan. 1, 2019, Birlasoft (India) Limited and the ‘IT
services’ business of KPIT Technologies Limited merged
to form a Enterprise Digital and IT Services company
named Birlasoft Limited.
This C K Birla Group (US$ 2.4 billion) company operates
development centres in the United States, China, Poland
and India. Birlasoft counts Fortune 100 enterprises
across manufacturing, banking & financial services,
insurance, media and healthcare industries as clients.
The company features in the Top 100 global IT
companies recognized by the International Association of
Outsourcing Professionals (IAOP).
This mid cap company is doing very well recently
Region-wise US accounts for almost 80% of
Revenues followed by Europe at 10% and
remaining by the rest of the world. Its Revenues
are well diversified across the clients. Top 5
clients contribute about 27% of Revenues.
Sector wise Automotive contributes about 13%
Revenue, Life Sciences 13%, Energy/Utilities
18%, BFSI 19%, Discrete Manufacturing Hitech
& Media 18% and rest Others.
The company has reported very good results for
the year ended 2020-21. The confidence in
future is evident from the jump in Dividend
declared. Also the Dividend payout ratio of 30%
is assuring one.
Despite marginal increase in Revenues the
company has succeeded in expanding the profit
margins for the last couple of quarters. With the
growing order book the company should
continue to do well. Last year its bottom-line
grew by 43% and this year we are projecting
about 30% growth. Thus for the running year we
are targeting a consolidated EPS of Rs 15. With
a reasonable PEG of 1.25 we are targeting a
share price of about Rs 560.
“Despite heightened uncertainties during this
pandemic year, we have exited FY21 with ....
record deal wins of $ 888 M, healthy cash
generation and top-customer led growth. The all-
round improvement on all operating metrics is
very reassuring and sets the foundation for
continued momentum into FY22. With due focus
on a robust customer centric strategy to win
more transformational, multi-services and long-
term deals, combined with operational rigor, we
are confident of accelerated growth in FY22 and
beyond.
Target Price=560
Stop Loss =310
Holding Period=11
Incorporated in 1995, Birlasoft is a multi-shore business
application IT services provider with a presence in the
United States, Europe, Asia-Pacific and India.
Effective Jan. 1, 2019, Birlasoft (India) Limited and the ‘IT
services’ business of KPIT Technologies Limited merged
to form a Enterprise Digital and IT Services company
named Birlasoft Limited.
This C K Birla Group (US$ 2.4 billion) company operates
development centres in the United States, China, Poland
and India. Birlasoft counts Fortune 100 enterprises
across manufacturing, banking & financial services,
insurance, media and healthcare industries as clients.
The company features in the Top 100 global IT
companies recognized by the International Association of
Outsourcing Professionals (IAOP).
This mid cap company is doing very well recently
Region-wise US accounts for almost 80% of
Revenues followed by Europe at 10% and
remaining by the rest of the world. Its Revenues
are well diversified across the clients. Top 5
clients contribute about 27% of Revenues.
Sector wise Automotive contributes about 13%
Revenue, Life Sciences 13%, Energy/Utilities
18%, BFSI 19%, Discrete Manufacturing Hitech
& Media 18% and rest Others.
The company has reported very good results for
the year ended 2020-21. The confidence in
future is evident from the jump in Dividend
declared. Also the Dividend payout ratio of 30%
is assuring one.
Despite marginal increase in Revenues the
company has succeeded in expanding the profit
margins for the last couple of quarters. With the
growing order book the company should
continue to do well. Last year its bottom-line
grew by 43% and this year we are projecting
about 30% growth. Thus for the running year we
are targeting a consolidated EPS of Rs 15. With
a reasonable PEG of 1.25 we are targeting a
share price of about Rs 560.
“Despite heightened uncertainties during this
pandemic year, we have exited FY21 with ....
record deal wins of $ 888 M, healthy cash
generation and top-customer led growth. The all-
round improvement on all operating metrics is
very reassuring and sets the foundation for
continued momentum into FY22. With due focus
on a robust customer centric strategy to win
more transformational, multi-services and long-
term deals, combined with operational rigor, we
are confident of accelerated growth in FY22 and
beyond.