Buy Security and Intelligence Services (India), target Rs 1490: IIFL

IIFL has a buy call on Security and Intelligence Services (India) Ltd. with a target price of Rs 1490.0 . The current market price of Security and Intelligence Services (India) Ltd. is Rs 1326.8 Time period given by the brokerage is a year when Security and Intelligence Services (India) Ltd. price can reach the defined target.

Security and Intelligence Services (India) Ltd., incorporated in the year 1985, is a mid-cap company with a market cap of Rs 9807.36 crore.

Investment rationale by IIFL
We cut FY19ii/FY20ii Ebitda for SIS by 4%, post 4Q FY18 results, but leave EPS largely unchanged at Rs34.6/Rs49.6 to factor in a lower tax rate. While 4Q FY18 Ebitda missed our estimate by 8% due to lower-than-expected revenues and margins in the India security services business, the growth outlook remains positive and the overall story remains on track, with management guiding at the analyst meet to continued >25% growth for the company. We continue to value the stock at 30x FY20ii EPS, and our March 2019 target price remains unchanged at Rs1,490.