Add Intellect Design Arena, target price Rs 557: Centrum Broking

Centrum Broking has add call on Intellect Design Arena Ltd. with a target price of Rs 557. The current market price of Intellect Design Arena is Rs 441.3. Time period given by analyst is one year when Intellect Design Arena Ltd. price can reach defined target.

Intellect Design Arena Ltd., incorporated in the year 2011, is a Small Cap company (having a market cap of Rs 5969.48 Crore) operating in IT Software sector.

Intellect Design Arena Ltd. key Products/Revenue Segments include Computer Software, Interest and Dividend for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 538.43 Crore, down -2.29 % from last quarter Total Income of Rs 551.06 Crore and up 19.06 % from last year same quarter Total Income of Rs 452.22 Crore. Company reported net profit after tax of Rs 48.45 Crore in latest quarter.

Investment Rationale
The brokerage revises revenue forecasts for FY23/24 by -2%/-3% and reduces EBITDA estimates by 320 bps/460 bps. It notes that Intellect’s products continue to be ranked highly among industry benchmark rankings and it continues to be positive on the long-term growth story in the company’s banking products despite near term challenges. It revises rating to ADD and target price to Rs 557.

Promoter/FII Holdings
Promoters held 30.66 per cent stake in the company as of 30-Sep-2022, while FIIs owned 24.6 per cent, DIIs 2.17 per cent.