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Q1FY22 Result Update - TeamLease - ICICI Direct

Q1FY22 Result Update - TeamLease - ICICI Direct
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TeamLease share price: Buy TeamLease Services, target price Rs 4200: Motilal Oswal

Given some level of uncertainty in the economy (due to the back and forth on lockdowns), some of the otherwise permanent roles are likely to be fulfilled through flexi-staffing, as employers attempt to maintain variable costs. The brokerage noticed similar trends in the immediate aftermath of the GFC and demonetization, when Staffing companies benefitted due to positive hiring trends in some verticals. Such a trend should likely play out in the near term, benefitting Staffing firms such as TEAM. Over the medium term, as both the Central and State governments look to liberalize and formalize the labor market, TEAM should be among the biggest direct beneficiaries.

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