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Intellect announces strategic partnership with Resurs Bank

Intellect announces strategic partnership with Resurs Bank
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Intellect Design Arena share price: Hold Intellect Design Arena, target price Rs 815: ICICI Direct

Intellect’s share price has grown by ~4x over the past five years (from ~Rs 205 in July 2016 to ~Rs 745 levels in July 2021. Improving deal wins, deal pipeline (| 4,630 crore), increased penetration in US & Europe, improving quality of revenues (licence + AMC + Cloud from 46% in FY20 to 54% in FY21) bode well for long term revenue growth. The company aspires to achieve 14-16% CAGR in revenues over the next five years. However, the near term impact of Covid prompts to factor in 13% CAGR in dollar revenues. It is expected to post 431 bps improvement in margins to 28% in FY21-23E. (Disclaimer: Views and recommendations given in this section are the analysts own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.

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