Neutral NIIT Technologies, target Rs 1,440: Phillip Capital (India)

Phillip Capital (India) has a neutral call on NIIT Technologies with a target price of Rs 1,440.

The current market price of NIIT Technologies is Rs 1,295.50.

Time period given by the brokerage is one year when NIIT Technologies price can reach the defined target.


View of the brokerage: We believe that with the much anticipated event (promoter stake sale) realizing and valuations bordering on the expensive side (as for most midcaps, in our opinion) – there might not be much upside left for NITEC, in near to medium term future. The deal having been realized at price of Rs 1,394 per share means, that the fair value of the stock too, from a medium term perspective, wouldn't be too far from it – which is where our price target also is (Rs 1,440). We have not made any changes to our FY20/21 estimates. We continue to value NITEC at 15x FY21 earnings. We downgrade the stock to Neutral – with the growth story intact, but valuations capturing the same to a large extent.