NIIT Technologies NIITEC) - ICICI Directcontent.icicidirect.com/mailimages/IDirect_NIITTech_Q2FY20.pdf · NIIT Tech has reported robust revenue growth on large deal wins and healthy

ICIC

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Retail E

quit

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esearch

Result

Update

October 24, 2019

CMP: | 1475 Target: | 1415 ( -4%) Target Period: 12 months

NIIT Technologies (NIITEC)

HOLD

Revenue driven by acquisition, organic growth…

NIIT Technologies reported revenue growth of 7.3% QoQ in US dollar terms

mainly led by acquisition of Wishworks and organic growth of ~3.0% QoQ.

Revenue growth was led by growth in insurance (14.8% QoQ) and BFS

vertical (14.1% QoQ). Further, digital (38% of revenues) grew 20.0% QoQ

and 54.1% YoY, supporting revenue growth. Going forward, based on the

order book momentum, healthy deal pipeline and Wishworks acquisition,

we expect revenue growth to surpass growth in most mid-tiers.

Large deal wins, healthy order book to drive revenues

Wining large deals, hiring senior leaders in sales position, higher

commission to sales for wining large deals, scaling the new wins, mining

existing clients and strategic acquisition has been the key strategy of the

company to drive revenues in the long term. This strategy has led to highest

order book for the company in recent quarters and robust organic growth.

The strength of the strategy is also visible in the current quarter in which the

company reported organic growth of 3.0% QoQ despite headwinds from

one of its BFS client. Going forward, although we expect BFS softness and

furloughs to impact Q3 revenues, we believe 1.2x book to bill ratio, trailing

12 month order book growth of 11.6% YoY, healthy digital revenues and

robust H1FY20 revenue growth will drive FY20E revenues. This coupled with

acquisition of Wishworks and mining of existing clients is expected to result

in rupee revenue CAGR of 12.7% over FY19-21E.

Margins to remain robust

Margins in Q1FY20 were impacted by one off expenses of ex-gratia payouts

and M&A related charges leading to reported margins of 14.4%. Hence, in

Q2FY20 reported margins grew 385 bps. However, on an adjusted basis, the

company reported margin growth of 141 bps led by SG&A optimisation and

improvement in gross margin. The company has a target to achieve EBITDA

margin of 18% for FY20E although it did not provide the respective guidance

for the same. We believe the absence of GIS and Wishworks in one quarter

will restrict the company’s ability to achieve its target mark. However, we

expect EBITDA margins to improve to 18.0% in FY21E from 17.7% in FY20E

led by revenue growth and high margin digital segments.

Valuation & Outlook

NIIT Tech has reported robust revenue growth on large deal wins and

healthy order book. This is expected to continue in coming quarters. In

addition, the company’s growth profile is better than peers. However, the

recent price run up in the stock factors in most positives. Hence, we maintain

our HOLD recommendation on the stock with a revised target price of

| 1,415/share (PE of 17x on FY21E EPS).

Key Financial Summary

s\

Financials FY17 FY18 FY19 FY20E FY21E CAGR (FY19-21E)

Net Sales 2,802 2,991 3,676 4,167 4,670 12.7%

EBITDA 485 501 645 738 841 14.1%

EBITDA Margins (%) 17.3 16.8 17.6 17.7 18.0

Net Profit 228 280 398 457 511 13.3%

EPS (|) 40.8 45.6 65.7 73.6 83.2

P/E 35.9 32.3 22.1 20.3 17.7

RoNW (%) 14.8 15.8 19.5 19.2 19.2

RoCE (%) 18.7 19.4 25.2 23.5 23.8

*P&L actual, BS, CF calculated; Source: Company, ICICI Direct Research

Particulars

Particular Amount

Market Capitalization (| Crore) 8,930.7

Total Debt (| Crore) 6.4

Cash & Investments (| Crore) 410.8

EV (| Crore) 8,526.3

52 week H/L 1540/ 1031

Equity capital 61.2

Face value 10.0

Key Highlights

A 1.2x book to bill ratio, TTM order

book growth of 11.6% YoY, digital

revenues and robust H1FY20 will

drive FY20E revenues. This coupled

with acquisition of Wishworks and

mining of existing clients is expected

to result in revenue CAGR of 12.7% in

FY19-21E

EBITDA margin is expected to remain

robust in coming quarters

Recent run up in stock factors in most

positives. Maintain HOLD rating

Research Analyst

Devang Bhatt

[email protected]

Deepti Tayal

[email protected]

ICICI Securities | Retail Research 2

ICICI Direct Research

Result Update | NIIT Technologies

Exhibit 1: Variance Analysis

Q2FY20 Q2FY20E Q2FY19 YoY (%) Q1FY20QoQ (%) Comments

Revenue 1,038.5 1,033.4 907.4 14.4 962.7 7.9

Dollar revenue growth led by healthy growth in insurance and

BFS vertical. Further, digital (38% of revenues) supported

revenue growth. The company reported organic growth of

~3.0% QoQ

Employee expenses 679.6 651.0 589.7 15.2 637.4 6.6

Gross Margin 358.9 382.4 317.7 13.0 325.3 10.3

Gross margin (%) 34.6 37.0 35.0 -45 bps 33.8 77 bps

SG&A expenses 169.1 196.3 154.3 9.6 186.4 -9.3

EBITDA 189.8 186.0 163.4 16.2 138.9 36.6

EBITDA Margin (%) 18.3 18.0 18.0 27 bps 14.4 385 bpsSG&A optimisation and gross margin expansion led to

improvement in EBITDA margins

Depreciation & amortisation 44.7 43.4 31.9 40.1 40.1 11.5

EBIT 145.1 142.6 131.5 10.3 98.8 46.9

EBIT Margin (%) 14.0 13.8 14.5 -52 bps 10.3 371 bps

Other income (less interest) 7.6 18.9 21.5 -64.7 17.2 -55.8

PBT 152.7 161.5 153.0 -0.2 121.7 25.5

Tax paid 27.6 40.4 36.3 -24.0 31.8 -13.2

PAT 119.5 119.0 111.8 6.9 87.7 36.3 Robust growth in PAT is due to one offs in previous quarter

Key Metrics

Closing employees 10,800 11,297 10,025 7.7 10,297 4.9 Added 503 employees of which 150 were freshers

Attrition (%) 12.3 12.9 10.8 150 bps 12.9 -60 bps Attrition declined in the quarter

Overall utilisation (%) 80.7 80.5 80.4 30 bps 80.5 20 bps

Average $/| 69.8 70.4 69.3 0.8 69.5 0.5

Source: Company, ICICI Direct Research

Exhibit 2: Change in estimates

FY19 Comments

(| Crore) Old New % Change Old New % Change

Revenue 3,676 4,117 4,167 1.2 4,587 4,670 1.8Revision of FY20E revenue estimates taking into

account rupee depreciation

EBITDA 645 741 738 -0.5 835 841 0.7

EBITDA Margin (%) 17.6 18.0 17.7 -33 bps 18.2 18.0 -23 bps EBITDA margins to stabilise at 18.0% in FY21E

PAT 403 456 452 -0.9 515 511 -0.9

EPS (|) 65.7 74.3 73.6 -0.9 83.9 83.2 -0.9

FY21EFY20E





Conference Call Highlights

Long term revenue outlook – The company has been able to register

robust growth over the years mainly led by wining large deals, hiring

senior leaders in sales position, higher commission to sales for

wining large deals, scaling the new wins and acquisition. This

strategy has enabled the company to generate healthy order & deal

pipeline leading to robust growth in revenues and margins. It is also

expected to be a long term driver of revenue growth in coming years

Near term revenue outlook – In Q2FY20, the company registered

revenue growth of 7.3% QoQ mainly led by acquisition of

Wishworks and organic growth of ~3.0% QoQ. Going forward, the

company expects Q3 to be impacted by furloughs and softness in

BFS clients. The company is expected to be back to its healthy

growth in Q4. However, softness in BFS client is expected to

continue. Healthy H1 growth coupled with acquisition of Wishworks

(Q2FY20 revenue was at | 42.5 crore and margins of 28%) and

robust order intake is expected to drive revenue growth in FY20E

Margin trajectory – The company has a target to achieve EBITDA

margin of 18% for FY20E although it did not provide the respective

guidance for the same. Divestment of high margin GIS business

would be offset by Wishworks acquisition, which has a similar

margin profile. However, in FY20E, we expect the company to

marginally fall short of 18% margins due to absence of GIS &

Wishworks business in Q1FY20

Vertical wise commentary – The company indicated that BFS was

impacted due to softness in one of its clients. However, the

company’s insurance business continues to do well due to winning

of material deal with large clients. In addition, the company

registered healthy growth in travel & transport vertical led by ramp

up in top accounts in the US and EMEA. The company’s verticals

(insurance, travel) are still not impacted by the ongoing Brexit

related issues

Digital business - Digital business now contributing 38% to revenues

grew 20.0% QoQ and strong 54.1% YoY in this quarter. The

acquisition of Wishworks has also augmented the company’s digital

revenues. The company has hired Arun Varadarajan. He has rich

experience in digital technologies and will head the company’s

digital business

Improving deal wins – The company’s order intake has been

consistently showing healthy position. Order intake grew 0.6%

sequentially to $176 million and the executable order book over the

next 12 months grew 2.5% sequentially to US$405 million. The

company added 10 new customers of which seven were from the

US, two from RoW and one from EMEA

Client position – In terms of client metrics, the client size increased

by four to 95. Revenues from top five customers (29% of revenues)

grew 15.3% QoQ mainly due to lower base. While top 6-10

customers (39% of revenues) declined 10.5% sequentially

Employee update - Employee strength was at 10,800 with net

addition of 503 employees in the quarter. This includes addition of

Wishworks and the company added ~150 freshers. Attrition rate

declined 60 bps QoQ to 12.3% in the quarter while utilisation

increased 20 bps sequentially to 80.7%. The company’s cash flow

was impacted in the quarter due to increase in DSO days to 73 from

67. The company expects cash flow to normalise in coming quarters




Key Metrics

Exhibit 3: Geography-wise split up

Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20

Revenue by geography (%)

America 50.0 49.0 49.0 49.0 49.0 49.0

EMEA 32.0 34.0 33.0 33.0 35.0 37.0

RoW 18.0 17.0 18.0 18.0 16.0 14.0

Growth QoQ (%)

America 6.0 3.2 3.0 2.3 0.4 7.3

EMEA 1.7 11.9 0.0 2.3 6.5 13.5

RoW -8.4 -0.5 9.1 2.3 -10.8 -6.1


Exhibit 4: Vertical wise split up


Revenue by verticals (%)

Banking & financial services 17.0 16.0 15.0 16.0 16.0 17.0

Insurance 29.0 29.0 30.0 28.0 29.0 31.0

Transport 27.0 27.0 26.0 27.0 28.0 28.0

Others 28.0 28.0 29.0 29.0 27.0 24.0

Growth QoQ (%)

Banking & financial services 8.1 -0.9 -3.4 9.1 0.4 14.1

Insurance 5.4 5.3 6.6 -4.5 4.0 14.8

Transport 5.7 5.3 -0.8 6.2 4.1 7.3

Others -5.0 5.3 6.7 2.3 -6.5 -4.6


Exhibit 5: Service-wise split up


Revenue by service mix (%)

SI & PI 3.0 4.0 4.0 4.0 1.0 1.0

IP Assets 7.0 6.0 6.0 5.0 6.0 5.0

Managed Services 19.0 18.0 18.0 17.0 17.0 17.0

Application Development & Management 68.0 68.0 68.0 70.0 72.0 74.0

BPO 3.0 4.0 4.0 4.0 4.0 3.0

Growth QoQ (%)

SI & PI -23.7 40.4 3.0 2.3 -74.9 7.3

IP Assets 1.7 -9.7 3.0 -14.7 20.5 -10.5

Managed Services 1.7 -0.2 3.0 -3.4 0.4 7.3

Application Development & Management 4.8 5.3 3.0 5.3 3.3 10.3

BPO -23.7 40.4 3.0 2.3 0.4 -19.5


Growth in EMEA due to growth in BFS, travel

verticals and Wishworks acquisition. Decline in

ROW was due to divestment of ESRI business

Insurance business improved due to material deal

win from large client. Softness in BFS client is

expected to continue




Exhibit 6: Client & human resource matrix es


Client metrics

Between 1 to 5 million 63 63 62 66 66 70

Between 5 to 10 million 14 18 20 16 17 16

Above 10 million 7 7 8 8 8 9

Headcount, Utilization, Attrition

Total Employees 9,764 10,025 10,144 10,263 10,297 10,800

Utilization 80.1 80.4 79 79.3 80.5 80.7

Attrition 10.1 10.8 11.7 12.2 12.9 12.3


Increase of four clients in $1-5 million category and

one client in above $10 million category




Financial story in charts

Exhibit 7: Digital contribution as percentage of overall revenue continues to inch up

18%19% 19%

21% 21%23%

25%26%

27%28%

29%30%

34%

38%

10.0%8.8%

-0.4%

18.9%

-0.6%

14.0%

11.0%8.9%

5.7%

9.2%

6.7% 5.8%

13.8%

20.0%

-2.0%

8.0%

18.0%

28.0%

38.0%

Q1FY17

Q2FY17

Q3FY17

Q4FY17

Q1FY18

Q2FY18

Q3FY18

Q4FY18

Q1FY19

Q2FY19

Q3FY19

Q4FY19

Q1FY20

Q2FY20

%

Digital as a % of revenue Growth, QoQ


Exhibit 8: Dollar revenues may grow at 11.6% CAGR in FY19-21E

388 411 416

464

124 131 135 138

528

139149

592

658

1.1

6.0

1.3

11.3

13.114.1

15.6

12.913.9

11.4

13.6

12.111.1

0

5

10

15

20

0

100

200

300

400

500

600

700

FY15

FY16

FY17

FY18

Q1FY19

Q2FY19

Q3FY19

Q4FY19

FY19

Q1FY20

Q2FY20

FY20E

FY21E

%$ million

Dollar revenue Growth, YoY


Exhibit 9: Change in margin estimates for FY20E and FY21E

14.6

17.3 17.316.8

15.8

18.018.6

17.6 17.6

14.4

18.317.7 18.0

10

13

16

19

22

FY15

FY16

FY17

FY18

Q1FY19

Q2FY19

Q3FY19

Q4FY19

FY19

Q1FY20

Q2FY20

FY20E

FY21E

%

EBITDA margin





Exhibit 10: PAT trend

194

264 250280

86112 100 106

403

88120

452

511

0

100

200

300

400

500

600FY15

FY16

FY17

FY18

Q1FY19

Q2FY19

Q3FY19

Q4FY19

FY19

Q1FY20

Q2FY20

FY20E

FY21E

| crore

PAT


Exhibit 11: One year forward rolling PE

0

200

400

600

800

1000

1200

1400

Price 15 12 9 6 3


Exhibit 12: Valuation

Sales Growth EPS Growth PE EV/EBITDA RoNW RoCE

(| cr) (%) (|) (%) (x) (x) (%) (%)

FY17 2,802 4.5 40.8 (5.7) 35.9 17.0 14.8 18.7

FY18 2,991 6.8 45.6 11.9 32.3 16.3 15.8 19.4

FY19 3,676 22.9 65.7 43.9 22.1 12.4 19.5 25.2

FY20E 4,167 13.4 73.6 12.0 20.3 10.6 19.2 23.5

FY21E 4,670 12.1 83.2 13.1 17.7 9.2 19.2 23.8





Exhibit 13: Recommendation History vs. Consensus

0.0

20.0

40.0

60.0

80.0

100.0

100

400

700

1,000

1,300

1,600

1,900

Oct-

19

Sep-

19

Jul-

19

May-

19

Apr-

19

Feb-

19

Jan-

19

Nov-

18

Oct-

18

Aug-

18

Jun-

18

May-

18

Mar-

18

Feb-

18

Dec-

17

Nov-

17

Sep-

17

Aug-

17

Jun-

17

May-

17

Mar-

17

Jan-

17

Dec-

16

Oct-

16

Sep-

16

(%

)

(|)

Price Idirect target Consensus Target Mean % Consensus with BUY

Source: Bloomberg, Company, ICICI Direct Research

Exhibit 14: Top 10 Shareholders

Rank Name Latest Filing Date% O/S Position (m) Change (m)

1 Hulst (B V) 30-Sep-19 70.2% 43.8 21.9

2 Baring Private Equity Asia Ltd. 17-May-19 30.3% 18.9 18.9

3 HDFC Asset Management Co., Ltd. 30-Sep-19 4.7% 2.9 0.2

4 Matthews International Capital Management, L.L.C. 30-Jun-19 2.9% 1.8 0.8

5 Abu Dhabi Investment Authority 30-Jun-19 1.6% 1.0 1.0

6 Dimensional Fund Advisors, L.P. 31-Aug-19 1.6% 1.0 0.0

7 Polaris Capital Management, LLC 30-Jun-19 1.4% 0.9 0.0

8 AKM Systems Pvt. Ltd. 30-Jun-19 1.2% 0.8 0.0

9 Acadian Asset Management LLC 30-Jun-19 1.1% 0.7 0.0

10 Life Insurance Corporation of India 30-Jun-19 1.1% 0.7 0.0

Source: Reuters, ICICI Direct Research

Exhibit 15: Recent Activity

Investor name Value Shares Investor name Value Shares

Hulst (B V) 433.1m 21.9m Scantech Evaluation Services, Ltd. -272.2m -14.5m

Baring Private Equity Asia Ltd. 354.9m 18.9m Pawar (Rajendra Singh) -40.9m -2.2m

Abu Dhabi Investment Authority 19.5m 1.0m Thadani (Vijay K) -40.9m -2.2m

Matthews International Capital Management, L.L.C. 16.2m 0.8m Kotak Mahindra Asset Management Company Ltd. -5.9m -0.3m

Union Investment Luxembourg S.A. 10.9m 0.6m ICICI Prudential Asset Management Co. Ltd. -4.7m -0.2m

Buys Sells

Source: Reuters, ICICI Direct Research

Exhibit 16: Shareholding Pattern

(in %) Mar-19 Jun-19 Sep-19

Promoter 30.51 33.91 70.04

Public 69.49 66.09 29.96

Others 0.00 0.00 0.00

Total 100.00 100.00 100.00





Financial summary

Exhibit 17: Profit and loss statement | crore

FY18 FY19 FY20E FY21E

Total operating Income 2,991 3,676 4,167 4,670

Growth (%) 6.8 22.9 13.4 12.1

COGS (employee expenses) 1,918 2,391 2,709 3,026

S,G&A expenses 572 640 721 803

Total Operating Expenditure 2,490 3,031 3,430 3,829

EBITDA 501 645 738 841

Growth (%) 3.4 28.7 14.3 14.0

Depreciation 127 125 175 196

Other Income 30 48 38 43

PBT 404 568 601 688

Total Tax 95 140 135 156

Adjusted 'PAT 280 403 452 511

Growth (%) 12 44 12 13

Adjusted EPS (|) 45.6 65.7 73.6 83.2

Exceptional loss - 6 (6) -

Reported PAT 280 398 457 511

Reported EPS (|) 45.6 65.7 73.6 83.2

Growth (%) 11.9 43.9 12.0 13.1


Exhibit 18: Cash flow statement | crore

FY18 FY19 FY20E FY21E

Profit before Tax 404 568 601 688

Add: Depreciation 127 125 175 196

(Inc)/dec in Current Assets (83) (24) (176) (235)

Inc/(dec) in CL and Provisions - - 66 82

Taxes paid (111) (118) (135) (156)

CF from operating activities 382 453 498 532

(Inc)/dec in Investments (561) (584) - -

(Inc)/dec in Fixed Assets (89) (70) (188) (233)

Others 6 12 38 43

CF from investing activities (270) (230) (149) (190)

Issue/(Buy back) of Equity 7 9 - -

Inc/(dec) in loan funds 1 (5) - -

Dividend paid & dividend tax (81) (109) (174) (197)

CF from financing activities (74) (106) (174) (197)

Net Cash flow 38 116 175 145

Exchange difference 17 (7) - -

Opening Cash 408 418 558 732

Closing Cash 418 558 732 877


Exhibit 19: Balance sheet | crore

(Year-end March) FY18 FY19 FY20E FY21E

Liabilities

Equity Capital 62 62 62 62

Reserve and Surplus 1,713 2,011 2,288 2,601

Total Shareholders funds 1,774 2,072 2,350 2,663

Total Debt 18 10 10 10

Provisions 74 73 73 73

Minority Interest / Other non CL 219 102 122 142

Total Liabilities 2,085 2,257 2,554 2,888

Assets

Net Block 636 574 586 624

Capital WIP 1 1 1 1

Total Fixed Assets 637 575 588 625

Goodwill 243 245 245 245

Deferred tax assets 123 103 103 103

Debtors 591 592 671 752

Other Current Assets 248 403 500 654

Cash 418 558 732 877

Current Investments 365 365 365 365

Total Current Assets 1,623 1,918 2,269 2,648

Trade payables 145 165 187 209

Other current liabities 369 419 458 514

Short term provisions 71 33 38 42

Total Current Liabilities 585 617 683 765

Net Current Assets 1,039 1,302 1,586 1,883

Application of Funds 2,085 2,257 2,554 2,888


Exhibit 20: Key ratios | crore

(Year-end March) FY18 FY19 FY20E FY21E

Per share data (|)

Adjusted EPS (Diluted) 45.6 65.7 73.6 83.2

DPS 15.0 - 24.3 27.4

Cash per Share 68.1 92.1 117.8 142.8

BV per share (Diluted) 288.9 342.3 377.9 433.7

Operating Ratios (%)

EBITDA Margin 16.8 17.6 17.7 18.0

PBT Margin 13.5 15.5 14.4 14.7

PAT Margin 9.4 11.0 10.8 10.9

Debtor days 72 59 59 59

Creditor days 18 16 16 16

Return Ratios (%)

RoE 15.8 19.5 19.2 19.2

RoCE 19.4 25.2 23.5 23.8

RoIC 28.7 39.0 38.7 39.2

Valuation Ratios (x)

P/E (Adjusted) 32.3 22.1 20.3 17.7

EV / EBITDA 16.3 12.4 10.6 9.2

EV / Net Sales 2.7 2.2 1.9 1.6

Market Cap / Sales 3.0 2.4 2.1 1.9

Price to Book Value 5.1 4.3 3.9 3.4

Solvency Ratios

Debt/EBITDA 0.0 0.0 0.0 0.0

Debt / Equity 0.0 0.0 0.0 0.0

Current Ratio 1.4 1.6 1.7 1.8

Quick Ratio 1.4 1.6 1.7 1.8





Exhibit 21: ICICI Direct coverage universe (IT)

CMP M Cap

(|) TP(|) Rating (| Cr) FY19 FY20E FY21E FY19 FY20E FY21E FY19 FY20E FY21E FY19 FY20E FY21E FY19 FY20E FY21E

HCL Tech (HCLTEC) 1,120 1,200 Hold 151,850 74.7 76.6 85.3 15.0 14.6 13.1 10.4 9.3 7.9 26.9 25.2 24.6 24.5 21.3 20.6

Infosys (INFTEC) 642 855 Hold 343,388 35.4 39.1 44.8 22.3 20.2 17.6 15.2 13.6 11.7 32.9 32.4 34.3 23.7 24.2 25.6

MindTree (MINCON) 716 690 Hold 11,953 45.9 33.7 45.8 15.9 21.6 15.9 10.3 10.9 8.5 29.8 22.1 26.5 22.8 15.3 18.6

L&T Intotech (LTINFO) 1,662 1,870 Buy 27,985 87.3 86.2 101.0 18.5 18.7 16.0 13.7 12.8 10.6 40.4 33.5 33.1 31.0 25.7 25.4

NIIT Tech (NIITEC) 1,475 1,415 Hold 8,931 65.7 73.6 83.2 22.1 20.3 17.7 12.4 10.6 9.2 25.2 23.5 23.8 19.5 19.2 19.2

TCS (TCS) 2,069 2,005 Hold 739,500 83.8 86.2 95.5 23.4 22.8 20.6 17.7 16.6 14.8 43.8 42.6 43.9 34.4 33.4 34.4

Tech M (TECMAH) 727 850 Buy 65,381 47.7 45.8 51.7 15.2 15.8 14.1 9.1 9.1 7.9 23.6 21.1 21.2 21.2 17.9 17.8

Wipro (WIPRO) 249 300 Buy 150,558 14.9 17.2 20.5 16.7 14.5 12.2 10.2 9.9 7.9 17.8 18.7 20.0 15.8 18.0 19.1

RoE (%)

Sector / Company

EPS (|) P/E (x) EV/EBITDA (x) RoCE (%)





RATING RATIONALE

ICICI Direct endeavors to provide objective opinions and recommendations. ICICI Direct assigns ratings to its

stocks according to their notional target price vs. current market price and then categorizes them as Buy, Hold,

Reduce and Sell. The performance horizon is two years unless specified and the notional target price is defined

as the analysts' valuation for a stock

Buy: >15%

Hold: -5% to 15%;

Reduce: -15% to -5%;

Sell: <-15%

Pankaj Pandey Head – Research [email protected]

ICICI Direct Research Desk,

ICICI Securities Limited,

1st Floor, Akruti Trade Centre,

Road No 7, MIDC,

Andheri (East)

Mumbai – 400 093

[email protected]




ANALYST CERTIFICATION

I/We, Devang Bhatt, PGDBM, Deepti Tayal, MBA, Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the

subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. It is also confirmed that above mentioned

Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months and do not serve as an officer, director or employee of the companies mentioned in the report.

Terms & conditions and other disclosures:

ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering and distribution of financial products. ICICI Securities Limited is a Sebi registered

Research Analyst with SEBI Registration Number – INH000000990. ICICI Securities Limited Sebi Registration is INZ000183631 for stock broker. ICICI Securities is a subsidiary of ICICI Bank which is India’s largest private sector bank

and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund management, etc. (“associates”), the details in respect of which are available on

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ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. We and our associates might have investment banking and other business relationship

with a significant percentage of companies covered by our Investment Research Department. ICICI Securities generally prohibits its analysts, persons reporting to analysts and their relatives from maintaining a financial interest in the

securities or derivatives of any companies that the analysts cover.

Recommendation in reports based on technical and derivative analysis centre on studying charts of a stock's price movement, outstanding positions, trading volume etc as opposed to focusing on a company's fundamentals and, as

such, may not match with the recommendation in fundamental reports. Investors may visit icicidirect.com to view the Fundamental and Technical Research Reports.

Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein.

ICICI Securities Limited has two independent equity research groups: Institutional Research and Retail Research. This report has been prepared by the Retail Research. The views and opinions expressed in this document may or may

not match or may be contrary with the views, estimates, rating, target price of the Institutional Research.

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Securities from doing so. Non-rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable regulations and/or ICICI Securities policies, in

circumstances where ICICI Securities might be acting in an advisory capacity to this company, or in certain other circumstances.

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Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.

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NIIT Technologies NIITEC) - ICICI Directcontent.icicidirect.com/mailimages/IDirect_NIITTech_Q2FY20.pdf · NIIT Tech has reported robust revenue growth on large deal wins and healthy

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