Hold Intellect Design Arena, target Rs 250: Anand Rathi

Anand Rathi has a hold call on Intellect Design Arena Ltd. with a target price of Rs 250. The current market price of Intellect Design Arena Ltd. is Rs 214.65 Time period given by the analyst is a year when Intellect Design Arena Ltd. price can reach defined target.
Intellect Design Arena Ltd., incorporated in 2011, is a mid-cap company with a market cap of Rs 2643.98 crore, operating in Information Technology sector.

Investment rationale by Anand RathiRetaining a Hold. Intellect is doing extremely well on the revenue side. On the margin side, however, efficiency could have been better. We believe it is currently outdoing Majesco in terms of organic scale-up and is likely to match Majesco’s margins by FY20, adjusted for capitalisation. Therefore, there is a case for the target multiples to move higher to 2x FY20. We raise our target for Intellect to Rs 250, suggesting 19% potential. Risk: Adverse.