Buy Security and Intelligence Services (India), target Rs 1532: Edelweiss

Edelweiss has a buy call on Security and Intelligence Services (India) Ltd. with a target price of Rs 1532. The current market price of Security and Intelligence Services (India) Ltd. is Rs 1145.9 Time period given by the brokerage is a year when Security and Intelligence Services (India) Ltd. price can reach defined target. . Security and Intelligence Services (India) Ltd., incorporated in 1985, is a midcap company with a market cap of Rs 8225.49 crore.

Investment rationale by Edelweiss

We recently met SIS India’s Group Managing Director Mr. Rituraj Sinha for a strategic and business update. SIS reiterated its objective of becoming the leader across business segments, but cautioned that its M&A approach is extremely selective with only strategic-fits on the radar. Furthermore, the operating strategy remains centered on improving the proprietary operational model. This is in line with our view that SIS has a best-in-class operational model in terms of efficiency. TheMD said the FY18 growth momentum has continued into FY19E, which indicates that the current growth run-rate is healthy. We reiterate ‘BUY’ with an unchanged TP of INR1,532.