Infinite Computer Solutions High client concentration comes to haunt BUY ::Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Infinite Computer Solutions

High client concentration comes to haunt

BUY

CMP: Rs91                                        Target Price: Rs120

---

n     Infinite reported revenues of US$ 56.2 mn(-4% QoQ), missing expectations driven by ramp down in a key top client. Mgns were flat QoQ (est of +80 bpsQoQ) aided by weak currency 

n     Pfts at Rs 307 mn bettered est aided by higher other income. Net HC reduced for the 2nd qtr in a row(-146 QoQ) with revenues from top 5/10 clients declining by ~7.5/3.2% QoQ

n     Co has cut it’s  US$ revenue guidance to US$ 220 mn (+14% YoY) V/s  26.5-29% YoY growth outlook higher on account of rampdowns in a key telecom client account

n     Cut FY12/13E EPS by ~8.5/15% to ~Rs 26/28 driven by lower US$ rev assumptions, albeit aided by lower currency resets. Valuations inexpensive at <4x FY12 P/E. BUY, TP Rs 120