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    Reduce TeamLease Services, target price Rs 2475 : Kotak Institutional Equities

    Synopsis

    TeamLease Services, incorporated in the year 2000, is a Mid Cap company (having a market cap of Rs 4319.50 Crore) operating in Services sector.

    Reduce
    Promoters held 31.51 per cent stake in the company as of 30-Sep-2022, while FIIs owned 42.1 per cent, DIIs 21.24 per cent.
    Kotak Institutional Equities has reduce call on TeamLease Services with a target price of Rs 2475. The current market price of TeamLease Services is Rs 2527.9.

    TeamLease Services, incorporated in the year 2000, is a Mid Cap company (having a market cap of Rs 4319.50 Crore) operating in Services sector.

    TeamLease Services key Products/Revenue Segments include Sale of services for the year ending 31-Mar-2022.

    Financials
    For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 1966.88 Crore, up 3.98 % from last quarter Total Income of Rs 1891.65 Crore and up 28.64 % from last year same quarter Total Income of Rs 1528.96 Crore. Company has reported net profit after tax of Rs 31.62 Crore in latest quarter.

    The company’s top management includes Mr.Narayan Ramachandran, Mr.Manish Mahendra Sabharwal, Mr.Ashok Reddy, Mr.V Raghunathan, Mr.Zarir Batliwala, Mrs.Latika Pradhan, Mrs.Meenakshi Nevatia, Mr.Mekin Maheshwari. Company has S R Batliboi & Associates LLP as its auditors. As on 30-09-2022, the company has a total of 2 Crore shares outstanding.

    Investment Rationale
    The brokerage's recent industry discussions suggest that staffing headcount in 2HFY23 will be impacted due to weakness in the IT/ITes sector and hiring freeze or cost-cutting initiatives in new-age startups. The brokerage expects pricing pressure on contract rates to impact margins as well. Also it has cut EPS estimates by 7-9% for FY2024-25E, which drives a revised FV of Rs2,475 (Rs2,900 earlier). Lack of triggers for growth leads us to retain Reduce.

    Promoter/FII Holdings
    Promoters held 31.51 per cent stake in the company as of 30-Sep-2022, while FIIs owned 42.1 per cent, DIIs 21.24 per cent.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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