JK Khandwala is bullish on Firstobject Tech and has recommended buy rating on the stock with a target of Rs 165 in its September research report.....
JK Khandwala is bullish on Firstobject Tech and has recommended buy rating on the stock with a target of Rs 165 in its September research report.
“Firstobject Technologies Limited (FTL) is a provider of integrated business, technology and process solutions on a global delivery platform. Since the financial year 2007-08, which they recognize as a TURN AROUND year, every initiative, every partnership and above all their project execution levels are built around solid base. Though best is still to be achieved, substantial efforts from their side made Firstobject the technology partner of choice for nascent, growing and established businesses. Firstobject as a technology consulting, technology services and outsourcing company, combines unparalleled experience, comprehensive capabilities across all verticals as well as business functions, and extensive research on the world's most successful companies.”
“Firstobject Technologies collaborates with clients to help them become high-performance businesses. Firstobject's "high performance business" strategy was built on their expertise in consulting, technology and outsourcing to help clients perform at the highest levels. Using their industry knowledge, service-offering expertise and technology capabilities; they identify new business and technology trends and develop solutions to help clients around the world. The company in the year 2009-10 has diversified its area of business and entered into E education business. The company within short span of time has developed content material for various state boards, CBSE board and ICSE board. The company has launched its products from Pre School to Senior Secondary School education content and also entrance examinations material for University level course. The company during the year has acquired Pre School products company for catering to Pre School Segment.”
“Corporate Restructuring under a scheme of arrangement of Firstobject Technologies Limited the combined revenue is around Rs. 610.02 mn for the FY 2010-11 with a growth of 145% on Yo- Y basis and Net Profit of Rs. 68.93 mn with a growth of 200% onY-o-Ybasis. The company shall register a Revenue growth CAGR of 29% and Profitability CAGR at 39% during FY 11-15. The company expects to achieve a Turnover of Rs. 772.33 mn in FY12(E) and Rs.1091.02 mn for FY13(E). The company expects to achieve a Net Profit of Rs. 89.07 mn in FY12(E) and Rs.159.21 mn for FY13(E). The EPS of the company has increased considerably in FY11 post consolidation and the growth is expected to be at an average of 50% over coming years.”
“We recommend a strong BUY CALL with a Target Price of Rs. 165 based on FY12E and FY13E earnings of Firstobject Technologies Limited for an investment horizon of 6 months to 1 Year. At Rs.165, the scrip is going to trade at 19.27x of FY12 earnings and 10.78x of FY13 earnings, which is very attractive when compared with its peer companies. Aided by multiple growth drivers, On the back of demonstration of explosive growth and superior profitability in the coming years, we expect the stock to trade at premium valuations compared to its peers. The Book Value of the company also suggests that the share is grossly undervalued when compared to its peers. We strongly reiterate BUY,” says JK Khandwala research report.
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JK Khandwala is bullish on Firstobject Tech and has recommended buy rating on the stock with a target of Rs 165 in its September research report.
“Firstobject Technologies Limited (FTL) is a provider of integrated business, technology and process solutions on a global delivery platform. Since the financial year 2007-08, which they recognize as a TURN AROUND year, every initiative, every partnership and above all their project execution levels are built around solid base. Though best is still to be achieved, substantial efforts from their side made Firstobject the technology partner of choice for nascent, growing and established businesses. Firstobject as a technology consulting, technology services and outsourcing company, combines unparalleled experience, comprehensive capabilities across all verticals as well as business functions, and extensive research on the world's most successful companies.”
“Firstobject Technologies collaborates with clients to help them become high-performance businesses. Firstobject's "high performance business" strategy was built on their expertise in consulting, technology and outsourcing to help clients perform at the highest levels. Using their industry knowledge, service-offering expertise and technology capabilities; they identify new business and technology trends and develop solutions to help clients around the world. The company in the year 2009-10 has diversified its area of business and entered into E education business. The company within short span of time has developed content material for various state boards, CBSE board and ICSE board. The company has launched its products from Pre School to Senior Secondary School education content and also entrance examinations material for University level course. The company during the year has acquired Pre School products company for catering to Pre School Segment.”
“Corporate Restructuring under a scheme of arrangement of Firstobject Technologies Limited the combined revenue is around Rs. 610.02 mn for the FY 2010-11 with a growth of 145% on Yo- Y basis and Net Profit of Rs. 68.93 mn with a growth of 200% onY-o-Ybasis. The company shall register a Revenue growth CAGR of 29% and Profitability CAGR at 39% during FY 11-15. The company expects to achieve a Turnover of Rs. 772.33 mn in FY12(E) and Rs.1091.02 mn for FY13(E). The company expects to achieve a Net Profit of Rs. 89.07 mn in FY12(E) and Rs.159.21 mn for FY13(E). The EPS of the company has increased considerably in FY11 post consolidation and the growth is expected to be at an average of 50% over coming years.”
“We recommend a strong BUY CALL with a Target Price of Rs. 165 based on FY12E and FY13E earnings of Firstobject Technologies Limited for an investment horizon of 6 months to 1 Year. At Rs.165, the scrip is going to trade at 19.27x of FY12 earnings and 10.78x of FY13 earnings, which is very attractive when compared with its peer companies. Aided by multiple growth drivers, On the back of demonstration of explosive growth and superior profitability in the coming years, we expect the stock to trade at premium valuations compared to its peers. The Book Value of the company also suggests that the share is grossly undervalued when compared to its peers. We strongly reiterate BUY,” says JK Khandwala research report.
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