Fundamentals

INTELLECT DESIGN ARENA

Ticker : 538835
BUY: Rs233
Target: Rs266 

The company is a global leader in financial technology for banking, insurance and other financial services. It has presence in Europe, USA, India and other emerging and growing markets. In Q2FY19, the company’s revenue grew by 41.7 percent YoY to Rs 380.4 crore from Rs 268.5 crore led by growth in licence and AMC revenues. EBITDA was up by 75.4 percent YoY from Rs 21.8 crore to Rs 38.3 crore. EBITDA margin expanded from 8.1 percent to 10.1 percent on YoY basis. PAT for the quarter ballooned to Rs 31.5 crore from Rs 8 crore. PAT margin improved by 531 bps to 8.3 percent from 3 percent. It won four large transformational deals and its order book stands strong at Rs 1250 crore, giving strong revenue visibility. Considering the robust financials and order pipeline, we recommend it as a BUY. 

HIL

Ticker : 509675
BUY: Rs2155
Target: Rs2410 

HIL is flagship company of C K Birla Group engaged in manufacturing of roofing solutions and industrial thermal insulation. In FY19, it commenced commercial production at Kondapalli plant, Andhra Pradesh, with capacity of 33,600 MTPA. In Q2FY19, the total revenue was up by 20 percent YoY from Rs 256 crore to Rs 307 crore, as revenue from building solutions grew by 30 percent. EBITDA grew by 80 percent YoY to Rs 57 crore from Rs 32 crore. PAT for the quarter jumped by 185 percent YoY from Rs 9 crore to Rs 27 crore. The recent acquisition of Parador Holding by HIL has enabled its entry into European market, Southeast Asia and USA. It will also add to its R&D and design capabilities in the flooring solutions segment. Considering the robust financials and acquisition, we recommend it as a BUY.