IIFL Securities Places Buy On Midcap Services Sector Stock, Assigns Rs 419 Target Price

In a recent report on CMS Info Systems Ltd, broking firm IIFL Securities has placed a Buy with a 12 months target price of Rs. 419 apiece. Given the target price, the stock is likely to give a decent return of up to 19% if shares are purchased at the current market price.

CMS Info Systems Ltd. is a midcap company operating in the services sector. It has a market valuation of Rs. 5,412.49 crore.

Strong core; rapid diversification in store

IIFL Securities said, "We recently hosted Rajiv Kaul (Exec. Vice Chairman and MD) and Pankaj Khandelwal (CFO) for investor meetings in Mumbai and the US. After having achieved 17%/20% revenue/Ebitda Cagr over FY09-23, CMS' revenue aspiration of Rs34-38bn by FY27 entails 17% Cagr (at mid-point). The managed services (MS) business should grow faster; 40-42% target contribution to overall revenue vs. 32% in FY23. "

It added, "While CMS would endeavour to maintain margin, the company's primary focus would be on ensuring revenue growth amid increasing competitive intensity. It would continue to explore inorganic opportunities which offer the right capabilities and meet healthy IRR thresholds. The stock is attractive at ~14x 1YF PE considering 20% EPS Cagr over FY23-25ii. Maintain BUY."

Stock Movement

On Thursday, the shares of CMS Info Systems currently trading at Rs. 353.15 apiece, down 0.11% from its previous close of Rs. 353.55 apiece.

It gave 2.62% positive return in the past 1 week. While in the past 1 month, it gave a 12.37% positive return and in the past 3 months, it gave a 23.09% positive return. It gave a 58.35% positive return in the past 1 year. Since its listing i.e. 31st December 2021, the value of the shares jumped 47.5%.

Its 52 week high is Rs. 361.95 apiece, recorded on 22 June 2023 and its 52 week low is Rs. 210.40 apiece recorded on 27 June 2022.

About - CMS Info Systems Ltd.

CMS Info Systems is one of India's leading business services companies and India's largest cash management company based on number of ATM points and number of retail pick-up points , and offers its customers a wide range of tailored cash management and managed services solutions, including ATM network management, retail management and managed services. The Company manages the entire flow and management of money for the 1,50,000 business points that it serves every day - from when the RBI initially deposits cash in the bank's currency chests, to when cash is deposited back in banks after going through the various stages of the cash cycle.

Disclaimer - The stock has been picked from the brokerage report of IIFL Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.