CMP - ₹113

Dalal Street Investment Journal - - RECOMMENDATIONS -

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.

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