Buy Birlasoft, target price Rs 522: ICICI Direct

ICICI Direct has buy call on Birlasoft with a target price of Rs 522. The current market price of Birlasoft is Rs 482.8. Time period given by analyst is 14 days when Birlasoft Ltd. price can reach defined target.

Birlasoft Ltd., incorporated in the year 1990, is a Small Cap company (having a market cap of Rs 13413.28 Crore) operating in IT Software sector.

Birlasoft Ltd. key Products/Revenue Segments include Software Development Charges for the year ending 31-Mar-2021.



Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 1021.04 Crore, up 5.61 % from last quarter Total Income of Rs 966.78 Crore and up 18.19 % from last year same quarter Total Income of Rs 863.88 Crore. Company reported net profit after tax of Rs 103.13 Crore in latest quarter.

Investment Rationale
Going ahead the brokerage expects the stock to maintain positive bias head higher towards Rs 522 levels being the 123.6% external retracement of the entire previous decline (Rs 514-447).

Promoter/FII Holdings
Promoters held 40.66 per cent stake in the company as of 30-Sep-2021, while FIIs owned 17.38 per cent, DIIs 21.96 per cent.