TeamLease approves Rs 100 crore share buyback; stock up 5%

Staffing and human resource services firm TeamLease Services on Friday announced a Rs 100 crore share buyback via the tender offer route.

The company would buy back or repurchase up to 3,27,869 equity shares at a price of Rs 3,050 per share. The buyback price is at a premium of 35% as against the company’s share price on the day prior to the announcement.

However, the buyback offer price represents a premium of 25.08 % over the closing price of the equity shares on NSE and BSE, respectively, on January 24, 2023, the day preceding the date when intimation for the board meeting was sent to the stock exchange, the company said in a BSE filing.

Following the announcement, shares of TeamLease Services rallied over 5% to Rs 2,370 in Friday's trade on BSE.

In Q3FY23, TeamLease Services reported net revenue of Rs 2,018 crore as against Rs 1,767 crore recorded in Q3FY22, representing a YoY growth of 14%. The company reported an EBITDA of Rs 32 crore in the third quarter of 2023 as against Rs 38 crore recorded in the same quarter of 2021, representing a YoY decline of 16%.

Its net profit stood at Rs 29 crore in Q3FY23 as compared to Rs 30 crore in the year-ago quarter, representing a fall of 5% YoY.

As per Trendlyne data, the highest target price for the stock goes up to Rs 3,725, while the average target price estimate is of Rs 2,770, which shows an upside potential of 19% from the current market price of Rs 2,335 per share.

The consensus recommendation from 12 analysts for TeamLease Services is a hold. Out of the 12 analysts covering the stock, four analysts have strong buy and buy ratings, four have strong sell and sell ratings and the remaining four have hold ratings.

With a market cap of Rs 3,984 crore, TeamLease Services delivers a broad range of human resource services to various industries and diverse functional roles across India.

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