Buy TeamLease Services, target price Rs 2890 : Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on TeamLease Services with a target price of Rs 2890. The current market price of TeamLease Services is Rs 2225.2.
TeamLease Services, incorporated in the year 2000, is a Mid Cap company (having a market cap of Rs 3675.72 Crore) operating in Services sector.

TeamLease Services key Products/Revenue Segments include Sale of services for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 2037.17 Crore, up .94 % from last quarter Total Income of Rs 2018.25 Crore and up 11.81 % from last year same quarter Total Income of Rs 1822.07 Crore. Company has reported net profit after tax of Rs 24.37 Crore in latest quarter.

The company’s top management includes Ashok Reddy and Manish Sabharwal . Company has S R Batliboi & Associates LLP as its auditors. As on 31-03-2023, the company has a total of 2 Crore shares outstanding.

Investment Rationale
With current valuations focused on near-term challenges, we see scope for a re-rating in the stock as these challenges ease out. With healthy long-term growth prospects, margin recovery, closure of EPF issues and attractive share price, the brokerage sees a good upside to current valuations and upgrade the stock to BUY with a TP of INR 2,890.

Promoter/FII Holdings
Promoters held 31.51 per cent stake in the company as of 31-Mar-2023, while FIIs owned 36.47 per cent, DIIs 24.85 per cent.