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Pause to out performance ahead, downgrade to HOLD |
HOLD
CMP: Rs 426 Target Price: Rs 430
n Strong revenue growth yet again with revenues at US$ 804 mn (+9% QoQ ) beating est, however balanced with operating margins down ~230 bps QoQ, ~650 bps YoY
n Apps/IMS continue to driven growth (9%QoQ). Rev from Europe were up 18% QoQ with finsvcs /telecom/retail seeing +10%/10%/13% QoQ. Strong Net adds(5k+) for 2nd qtr in a row
n We build in 30.4%/22% rev growth ( V/s 23.3%/20% earlier) for FY11/12, reset currency at 44/$ (V/s 46/$ earlier) driving 5% EPS cut to Rs 23.5 for FY11, FY12E EPS unchanged at Rs 29.8
n Cut rating to HOLD (V/s ACCUMULATE earlier) with an unchanged price target of Rs 430 as we see stall to out performance ahead (+15% in last 6 months)
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