SQS INDIA BFSI Ltd/ Thinksoft Global Services Research Reports Of IndiaNivesh

At CMP of Rs.796, the stock is trading at P/E multiple of 19.2x FY16E and 9.1x FY17E earning estimate. The current quarter performance gives the indication of integration benefit through following: (1) Strong revenue growth, (2) Improving utilization level, (3) Consistent improvement on margin front, and (4) Growth in key vertical and geography. The higher revenue growth during 1HFY16 remains the positive surprise. The sustenance of similar performance for medium‐term could lead to significant re‐rating. We upgrade our rating from BUY to HOLD with increase in TP to Rs.1,053 (valuing 12.0x FY17E) from Rs.665 on SQS India BFSI.”

Thinksoft Global Services_Initiating Coverage_Apr 2014

SQS-India-BFSI-Update-Report