Buy NIIT Technologies with a target at Rs 640: JM Financial Research

JM Financial Research maintains buy rating on NIIT Technologies post March quarter results with a 12-month target price of Rs 640.

NIIT Tech's (NITEC) 4QFY16 operating performance beat subdued expectations on Street. Importantly, its fifth consecutive quarter of margin expansion and second quarter of over USD 120mn deal TCV give us confidence that the anticipated business mix shift is on track, said the brokerage note.
"This should help sustain revenue growth and margin profile over the medium term, in our view. Besides, lower capex intensity and improved DSOs (due to lower government/domestic business) should improve cash-flow/ROE profile," added the report.