Jul 03, 2013
Firstcall Research has maintained 'Buy' on Infinite Computer Solutions with price target of Rs 95 as against current market price (CMP) of Rs 83 in its report.
Commenting on investment rationale, Firstcall Research said, "At the current market price of Rs 83, the stock P/E ratio is at 2.42 x FY14E and 2.21 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs 34.34 and Rs 37.51 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 20% and 10% over 2012 to 2015E respectively.
On the basis of EV/EBITDA, the stock trades at 1.07 x for FY14E and 0.91 x for FY15E. Price to Book Value of the stock is expected to be at 0.48 x and 0.39 x respectively for FY14E and FY15E. Infinite (Q,N,C,F)* has re-structured into 3 independent businesses, IT services, product engineering and mobility & messaging platforms and has completed major investments in building Mobility & Next Generation Platforms, which will drive its future growth. Over the next Fiscal, the company intends to invest over USD 12 millions to build a platform for growth across the three business line. We recommend Buy in this particular scrip with a target price of Rs 95 for medium to long term investment.''