Sharekhan's research report on Intellect Design Arena
Margins weakened due to rising investments on capacity and higher travel expenses; but Q1 saw steady growth in deal pipeline, pick-up in deal wins and deal sizes and stable attrition. Management expects to achieve a $75 million quarterly revenue run-rate in the next couple of quarters ($70 million in Q1FY23), while it targets to achieve $90 - $100 million revenue run-rate over 8-12 quarters. Growth would be driven by strong deal wins, market expansion and investments in platforms. Management lowered EBITDA margin guidance to 22-25% for FY2023E from earlier 25-30% as it plans to reinvest around 4-5% of its profitability in building platform and capacity for the next level of growth.
Outlook
We maintain Buy on Intellect Design with a revised PT of Rs. 780, given strong revenue growth visibility, expansion in new markets and a strong deal pipeline.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
