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Share market tips: Big profit in short-term! Buy NIIT Tech stock for 22% gains, say experts - What smart investors should know
Expert are expecting around 22 per cent growth in investment if invested at current market price of NIIT Technologies stocks.
Share bazaar investment tips: Buoyed by 3.3 per cent q-o-q revenue growth led by continued growth in the largest focus verticals of insurance and transportation, market experts are betting high on NIIT Technologies stocks. Expert are expecting around 22 per cent growth in investment if invested at current market price of NIIT Technologies stocks.
Commenting upon the expected growth that an investor can expect in the NIIT Stock Ravi Menon, Equity Analyst at Elara Securities said, "NIIT Technologies (NITEC IN) revenue at $134.8mn was up 3.3 per cent QoQ (75bp above expectation) and 4.2 per cent QoQ in CC terms. Revenue growth was led by continued growth in the largest focus verticals of insurance and transportation. Insurance led QoQ incremental revenue at $2.1mn with transportation adding USD 0.6mn (against $1.6mn in Q2). Deal signing for the quarter was up 27 per cent YoY at $165mn including two $20mn+ large deals in insurance and financial services. Management expects deal momentum to continue as it continues to invest in sales talent and domain experts from Tier1 IT services firms including three key hires in Q3: 1) digital head for North America, 2) travel vertical head (to be based in Germany) from Capgemini and 3) head of infrastructure management services (IMS) who was an MD at Accenture." He said that EBITDA margin at 18.6 pr cent was 73bp above our expectation. As expected, SG&A leverage continues to play out with SG&A as a percentage of revenue at 16.8 per cent (down 20bp QoQ). Management reiterated that 18 per cent EBITDA margin is sustainable and that any margin gains above that band could be reinvested for faster growth. Headcount stood at 10,144, up 119 QoQ, while utilization was down 140bps QoQ at 79 per cent due to lower working days. Attrition inched up to 11.7 per cent versus 10.8 per cent in Q2, but investors need not to worry about that.
When asked about what he advises to the stock investors, Ravi Menon of Elara Securities told, "We maintain Buy and reiterate NIIT Technologies as our second top pick within IT Services mid-cap firms given broad drivers of growth and early signs of a sales transformation." He advised investors to book profit in the stock when it touches the levels of Rs 1500 per share.
Giving her view on the stock Simi Bhaumik, Technical Equity Analyst (officially registered with SEBI) told Zee Business online, "The stock has already scaled up by around 5 per cent. so, if somebody is holding this stock then they can take a trailing stop loss in between Rs 1255 to Rs 1265 levels. Its immediate target is Rs 1320 to Rs 1360. Once the stock sustains in this range, then only one can expect the stock to go further northwards."
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