Buy Team Lease Services, target Rs 1170: Prabhudas Lilladher

Prabhudas Lilladher maintains a buy on TeamLease Services with a 12-month target price of Rs 1170. TeamLease has announced acquisition of ASAP Info Systems, a Tier-1 IT staffing company for Rs670m.

"The transaction value of ASAP is at trailing 6x EV/EBITDA, which we believe is fairly attractive. TeamLease will pay 80% consideration immediately and remaining 20% will be paid over one year," said the brokerage note.