ICICI Direct's research report on Accelya Solutions
Accelya reported dismal Q4FY20 (June ending) results mainly led by exposure to airline sector. Revenues fell 44.7% QoQ, 42.4% YoY to Rs 62.8 crore. EBIT margins were at 4.5% vs. 28.9% in Q3FY20. PAT declined 85.0% QoQ to Rs 3.6 crore. Due to challenging times, the company has not declared a dividend and will conserve cash.
Outlook
As a result, we revise our EPS estimates upwards from Rs 38 and 53 in FY21E & FY22E to Rs 45 and Rs 69 in FY21E & FY22E, respectively. Hence, we revise our target price upwards to Rs 1200/ share (17x FY22E EPS, 3.5x FY22E sales) and upgrade the stock from REDUCE to BUY recommendation.
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