Buy Infibeam target Rs 1240: HDFC Securities

Subhash Gangadharan, technical analyst, HDFC Securities has a buy call on Infibeam with a target price of Rs 1240.

The current market price of Infibeam is Rs 1110.7.

Time period given by analyst is one month when Infibeam price can reach defined target.

HDFC Securities recommended to keep stoploss at Rs 1050.

In a report, the analyst says, "Infibeam is one of the strongest stocks in the market currently. This week, the stock has broken out of the 1025-1073 trading range on the back of above average volumes. This indicates that the stock is ready to resume its next leg of the underlying uptrend. Buy at Rs 1111 for a target of Rs 1240 and with a stop loss at Rs 1050."

Infibeam, incorporated in the year 2010, is a Mid Cap company (having a market cap of Rs 6028.70 crore) operating in Service sector.

Infibeam key Products/Revenue Segments include Software Development Charges & Other Services which contributed Rs 42.78 crore to Sales Value (99.22 per cent of Total Sales) and Export Incentives which contributed Rs .33 crore to Sales Value (0.77 per cent of Total Sales)for the year ending 31-Mar-2016.

For the quarter ended 31-03-2017, the company has reported a Consolidated sales of Rs 120.51 crore, up 17.63 per cent from last quarter Sales of Rs 102.45 crore and up 61.21 per cent from last year same quarter Sales of Rs 74.75 crore.

Company has reported net profit after tax of Rs 13.58 crore in latest quarter.

The company’s top management includes Mr.Ajit Mehta, Mr.Keyoor Bakshi, Mr.Malav Mehta, Mr.Roopkishan Dave, Mr.Vishal Mehta, Mrs.Vijaylaxmi Sheth. Company has B S R & Associates LLP as its auditors.

As on 31-03-2017, the company has a total of 53,893,920 shares outstanding.