NIIT Technologies:
NIIT has acquired Proyecta Sistemas de Informacion S.A. (Proyecta) and this acquisition by NIITT as a good strategic step. It will likely enhance the presence of NIITT in the European region and will also give it access to large accounts, which can be scaled in the future. The valuations accorded to Proyecta are also not demanding and we expect little impact on the EPS of NIITT.
The FY12E EPS stands at Rs.32.6 and DCF - based price target stands at Rs.276 (Rs.280), based on FY12 earnings. At this target price FY12 earnings will be discounted by about 8.5x which is undemanding. Long term investors can buy on declines, since NIITT has been achieving consistent revenue growth and margins over the past few quarters.
NIIT has acquired Proyecta Sistemas de Informacion S.A. (Proyecta) and this acquisition by NIITT as a good strategic step. It will likely enhance the presence of NIITT in the European region and will also give it access to large accounts, which can be scaled in the future. The valuations accorded to Proyecta are also not demanding and we expect little impact on the EPS of NIITT.
The FY12E EPS stands at Rs.32.6 and DCF - based price target stands at Rs.276 (Rs.280), based on FY12 earnings. At this target price FY12 earnings will be discounted by about 8.5x which is undemanding. Long term investors can buy on declines, since NIITT has been achieving consistent revenue growth and margins over the past few quarters.
