SIS Q2 Results Review - Superior Execution; Improving Outlook To Support Growth: Axis Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.In Q2FY24, SIS Ltd. reported revenue at Rs 3,074 crore, registering a growth of 3.3% on a QoQ basis. The company’s consolidated Ebitda for the quarter grew by 3.9% QoQ to Rs 145 crore, owing to the rebound of international business and strong demand for Indian security solutions. It reported a net income of Rs 76 crore, which declined by 15.9% QoQ. Security Services in India exhibited an encouraging growth of 5.9% QoQ, driven by the rising demand for security guards and mandatory checkups. .Outlook From a long-term perspective, we believe SIS is sorting out client-specific engagement in verticals such as International business. However, rising concerns over the prospects of large economies along with prevailing business and demographic constraints pose uncertainties over the company’s short-term growth rates..Valuation and recommendation We recommend a 'Buy' rating on the stock and assign a 16 times price/earning multiple to its FY25E earnings of Rs 29.7/share to arrive at a target price of Rs 475/share, implying an upside of 15% from the current market price..Key risks to our estimates and target priceThe demand environment is uncertain because of the potential threat of recession in the world’s largest economies.The rising subcontracting cost and cross-currency headwinds may impact the company’s operating margins negatively..Click on the attachment to read the full report:.Tube Investments of India Q2 Results Review - Inline; Mobility Business Dents Margin: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

SIS Q2 Results Review - Superior Execution; Improving Outlook To Support Growth: Axis Securities

The management is confident that demand will pick up in the medium term based on orders won in recent quarters

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