DATAMATICS GLOBAL SERVICES
CMP - ₹113
The flagship company of Delta Infosolutions majorly engaged in consulting, IT, data management and business process management service, it derives major revenues from the US (65% in FY17) and Europe (17.5%). Being a small-cap IT company, the company is placed better than Indian IT giants in the current scenario. To strengthen its position domestically, it has entered into agreement to acquire 71.1% stake in Techjini Solutions, a mobile and web application development company. Its subsidiary, Datamatics Global Services Inc. incorporated Datamatics Robotics Software Inc in the US through acquisition. Historically too the company has seen almost consistent revenue and PAT growth since FY10. The company has posted 6% and 101% revenue and PAT growth, respectively, in FY17. Hence, we recommend BUY in the scrip for a target of ₹131 and with a stop loss of ₹105.