Recently Edelweiss has published their research report on NIIT Ltd, a stock from the education space, Recently NIIT has come up with their Q3 results. The results are not impressive. PAT is at 6 crores Vs 13.7 crores YOY. Revenue at 267.3 crores Vs 262.3 crores YOY. EBITDA at 3% Vs
In an interview the CEO of the company has told that the corporate learning group grew 14% in CC terms, added 3 new clients. He also added that 70% of the total retail business is transacted in cash. So the company has faced difficulties in cash transactions due to demonitisation.
The CEO also added that despite of bad news their growth story remains absolutely intact. The MTS deal with UK pharma client is extended for 4 years. International corporate business contributed to 66% to NIIT Ltd ‘s overall revenue in Q3. The 9-month CLG deal wins at multi-year highs.
The company has an impact on the retail business. The CEO confessed that the walk-in to their centers were hampered till one moneth after November 8, 2016, but now things are shaping once again for the retail and he is optimistic to move into profit in retail business again into Q4. In fact the DT course, the mail in retail business has exceeded their plans in spite of demonitisation. In fact the companies IT business has made an improvement in this quarter on YOY basis.
So it looks like the worst is over for the company. Edelweiss has published their latest report on the company where they are bullish on the companies overall growth story and they maintain a BUY rating on NIIT Ltd with a price target of 135.
The NIIT Ltd share has closed at 78.30 as of 27th January 2017. Check the above image for the daily charts. BUY the stock as this offers a profit potential of 72.41% from the current valuations. To download the full Edelweiss research report CLICK HERE.
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