Reliance Money recommends 'Buy' on Glodyne Technoserve
Reliance Money has recommended a 'Buy' call on Glodyne Technoserve with a 12-month price target of Rs 575.
By ET Bureau |
MUMBAI: Reliance Money has recommended a 'Buy' call on Glodyne Technoserve with a 12-month price target of Rs 575. The company's presence in the domestic market makes it immune from any major cut in the global IT spending and rupee appreciation, the brokerage says.
"Glodyne Technoserve (earlier known as Paradyne Infotech) is one of the few domestic focused IT players with core competency in and Technology IMS (Infrastructure Management Services) and Application software services. Glodyne has chucked out a well-defined path for growth, which comprises of both the organic and inorganic initiatives to garner the incremental IT spending in both the domestic and global market. At the end of Q3FY09, Glodyne has revenues mix of 75:25 in domestic and global market. The company continues to leap forward with impressive financial performance, we expect consolidated revenues to grow at a CAGR of 31% over FY09-11E and for the same period net profit expect to show a CAGR growth of 36%. We believe as 75% of Glodyne business is centered around India that too 79% from infrastructure management space (non-discretionary spend), which makes Glodyne largely immune from any major cut in the global IT spending and rupee appreciation. At CMP of Rs 458, stock trades at 5X FY10E and 4X FY11E earning, we recommend BUY with a 12 months target price of Rs 575, at our target price stock will be valued at 5x FY11E," the brokerage concluded.
At 12:35 pm, the share of Glodyne Technoserve at Rs 441 down 2.13 per cent on the BSE
"Glodyne Technoserve (earlier known as Paradyne Infotech) is one of the few domestic focused IT players with core competency in and Technology IMS (Infrastructure Management Services) and Application software services. Glodyne has chucked out a well-defined path for growth, which comprises of both the organic and inorganic initiatives to garner the incremental IT spending in both the domestic and global market. At the end of Q3FY09, Glodyne has revenues mix of 75:25 in domestic and global market. The company continues to leap forward with impressive financial performance, we expect consolidated revenues to grow at a CAGR of 31% over FY09-11E and for the same period net profit expect to show a CAGR growth of 36%. We believe as 75% of Glodyne business is centered around India that too 79% from infrastructure management space (non-discretionary spend), which makes Glodyne largely immune from any major cut in the global IT spending and rupee appreciation. At CMP of Rs 458, stock trades at 5X FY10E and 4X FY11E earning, we recommend BUY with a 12 months target price of Rs 575, at our target price stock will be valued at 5x FY11E," the brokerage concluded.
At 12:35 pm, the share of Glodyne Technoserve at Rs 441 down 2.13 per cent on the BSE
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