HINDUJA GLOBAL TARGET 680

Highlights:

- Hinduja Global Solutions (HGS), part of the multibillion dollar conglomerate Hinduja Group, is a world leader in Customer Relationship and Business Process Management, with a global footprint across North America, Latin America, Europe, Asia and Africa.

- The company’s net sales registered 8.47% increase in Q2 FY15 and stood at a record Rs. 7020.66 million from Rs. 6472.55 million over the corresponding quarter of previous year.

- In Q2 FY15, Net profit stood at Rs. 384.55 million against Rs. 429.44 million in Q2 FY14.

- Operating profit is at Rs. 852.26 million as against Rs. 916.70 million in the corresponding period of the previous year.

- Hinduja Global Solutions awarded e-SCM-SP Capability Level 5 for India, Philippines and USA. Hinduja Global Solutions Bags Silver at the 2014 Contact Center World Awards Final.

- HGS Recognized as a Leader in Ability to Add Current and Future Value to Customers in Telecommunications, Cable & Satellite Industries.

- Hinduja Global Solutions retains Top Outsourcer title in the Top 50 list with Unilever and Infiniti.

- Net Sales and PAT of the company are expected to grow at a CAGR of 18% and 26% over 2013 to 2016E respectively.

Outlook: At the current market price of Rs. 629.75, the stock P/E ratio is at 7.82 x FY15E and 7.20 x FY16E respectively. Investors are recommended to buy the stock for a price target of Rs. 680.00 for medium to long term investment.