Polaris Software - Stock Investment Research Report
Polaris Software looks to be a good mid cap stock. It has reported a good set of 3Q figures, with USD revenue rising 3.9% qoq. They raise FY10-12 earnings estimates slightly. It has won 30 new deals, the highest in a single quarter over the last two years. They reiterate its Buy stocks rating and target price of Rs 250.
Key points from the 3Q results. Polaris Software`s 3QFY10 revenue grew 0.2% qoq (rupee) and 3.9% (USD). Margin was flat qoq. Consolidated net profit rose 13.9% qoq.
The company won 30 new deals, the highest in any quarter in the last two years.
Geographically, Europe was down 1.3% while ROW grew 1.2%.
Market Cap 1,725.04
* EPS (TTM) 13.05
* P/E 13.37
* P/C 10.05
* Book Value 70.21
* Price/Book 2.49
Div(%) 55.00
Div Yield(%) 1.58
Market Lot 1.00
Face Value 5.00
Industry P/E 24.02
Polaris has maintained its EPS guidance for FY10 of Rs. 15/-
The stock investment research house pointed out at target price of Rs 250, the stock would trade at 12 times FY-11e earnings. At this stock valuation, Polaris would trade at a 33% discount to IT large caps.
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