Buy NIIT with a target at Rs 120: JM Financial Research

JM Financial Research maintains buy rating on NIIT post March quarter results with a 12-month target price of Rs 120. NIIT's 4QFY16 performance, though operationally in-line, capped the year where it achieved the milestones it set for itself.

The company reported 15 per cent growth in CLG, and return to growth and profit in SCG. NIIT expects the momentum to sustain in FY17 as well. Management guided for 15 per cent growth in CLG which accounts for 56 per cent of revenue and high single digit growth in SCG which accounts for 33 per cent of revenues with strong margin expansion.