stock views on Hyderabad Industries, 3i Infotech

Angel Sec  on 3i Infotech - Target Rs 129

 

Angel Securities is bullish on 3i Infotech and has recommended buy rating on the stock with a target of Rs 129, in its research report.

"3i Infotech declared strong 4QFY2010 performance on a consolidated basis registering 5.4% qoq growth in Top-line led by strong growth in the IT Services (9.9% qoq) and IT Products (5% qoq) Segments. The Transaction Services Segment Revenues grew 2.6% qoq to Rs245cr. While Operating Profit grew 3.6% to Rs124cr during the quarter, EBIDTA Margins fell 35bp qoq on lower Fx realisations during the quarter. The company wrote off Rs260cr as it exited the Citizen Service Center (CSC) business in 4QFY2010. Thus, Depreciation was reversed during the quarter and stood at a mere Rs1cr as against Rs22cr in the previous quarter. Profit after Tax adjusted for Extraordinary items grew 3% qoq."

"However, on reported basis, the company booked a Loss of Rs 167 crore. We believe that post the one-time hit (Kiosk business), the company would now focus on its core business going ahead. We maintain a Buy on the stock in view of the future potential of the acquired businesses," says Angel Securities research report.

Fairwealth Sec on Hyderabad Ind - Target Rs 800

 

Fairwealth Securities is bullish on Hyderabad Industries and has recommended buy rating on the stock with a target of Rs 800, in its research report.

"Hyderabad Industries Q4FY10 results were above our expectations. The topline grew 14% YoY to Rs 703 crore (In line with our expectations) The EBITDA expanded by 71% to Rs 159.03 cr (Above our expectations). The net profit improved by 104% YoY to Rs 89.72 crore (Above our expectations) due to lower interest cost and high operating profit. We remain with our target price of Rs 800 for next 6- 9 months . We rate Hyderabad Industries as BUY with a target price of Rs 800."