← Go back Jan 01, 2024
Motilal Oswal BUY; Target Price: Rs 1,750 Q3 revenue better than expected, EBIT margin marginally ahead of expectations Large deal TCV momentum in tact, strong traction in large deal pipeline Lower than expected wage hike & workforce reduction aided profit Margin should bottom in FY24 Target Price based on 22x FY26E EPS DAM Capital Upgrade to buy with price target of Rs 1,750 Revenue falls 1% QoQ CC (-1% YoY CC) slightly below est. of 0.5% QoQ CC decline Weakness led by higher furloughs, billing impact from ransomware attack on a subsidiary Q3 marks 3rd consecutive quarter of guidance cut Believe strong ramp up deals will start from FY25 with strong H1 Increase in utilization should further support margins in FY25 Raise EPS estimates for FY25/26 by 2%/3% on strong deal wins outlook Expect 15% EPS CAGR FY24-26 Relatively strong growth in FY25 could be led by FY22/23 project closures, deal wins ramp up U.S. Dollar Index at 102.20 U.S. 10-year bond yield at 3.98% Brent crude up 2.30% at $79.19 per barrel Nymex crude up 2.49% at $73.81 per barrel GIFT Nifty was up 0.06% at 21,720.50 as of 8:11 a.m. Bitcoin was up 0.03% at $46,177.51 Nifty January futures down by 0.14% to 21,678.45 at a premium of 31.20 points. Nifty January futures open interest up by 2%. Nifty Bank January futures down by 0.07% to 47,573.7 at a premium of 135.35 points. Nifty Bank January futures open interest up by 4.1%. Nifty Options Jan 18 Expiry: Maximum Call open interest at 21,700 and Maximum Put open interest at 21,000. Bank Nifty Options Jan 17 Expiry: Maximum Call Open Interest at 47,500 and Maximum Put open interest at 45,000. Price band revised from 20% to 10%: Kamdhenu, Network18 Media and Investments, TARC. Price band revised from 10% to 5%: AGS Transact Technologies. Price band revised from 5% to 20%: Sundaram Clayton. Ex/record bonus issue: Newgen Software Technologies. Ex/record rights issue: Skipper. Moved into short-term ASM framework: AstraZeneca Pharma, Century Textiles and Industries, Chaman Metallics, Dish TV India, Network18 Media and Investments, Olectra Greentech. Emami: Promoter Suraj Finvest created a pledge for 7.5 lakh shares on Jan. 9. and revoked a pledge for 3.5 lakh shares on Jan. 5. Promoter Diwakar Finvest revoked a pledge for 4.45 lakh shares on Jan. 5 and revoked a pledge for 3.5 lakh shares on Jan. 9. Jindal Steel and Power: Promoter Siddeshwari Tradex revoked a pledge for 17.92 lakh shares on Jan. 10.
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