Accelya reported dismal Q1FY21 (June ending) results mainly led by exposure to airline sector. Revenues fell 5.1% QoQ, 46.7% YoY to Rs. 59.2 crore mainly led by higher refund income in previous quarter. EBIT margins were at 3.4% vs. 4.5% in Q4FY20. Employee cost increased in the quarter due to restoration of salaries (compared to salary cuts in previous quarter). PAT declined 42.5% QoQ to Rs. 2.0 crore mainly led by higher tax expenses. We have introduce FY23E estimates in the current quarter.
Valuation & Outlook
The company reported a subdued Q1FY21 performance. Further, we expect its ability to reach pre-Covid levels to be further elongated by a few quarters due to fresh lockdowns announced in many countries and Covid related challenges in airline sector. As a result, we taper down our FY21E and FY22E revenue and EPS estimates. Hence, we revise our target price downwards to Rs. 1070/ share (17x FY23E EPS, 3.5x FY23E sales) and downgrade the stock from BUY to HOLD recommendation.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Accelya_CoUpdate_Oct20.pdf
Shares of Accelya Solutions India Limited was last trading in BSE at Rs.959.15 as compared to the previous close of Rs. 949.15. The total number of shares traded during the day was 1150 in over 200 trades.
The stock hit an intraday high of Rs. 968.15 and intraday low of 942.8. The net turnover during the day was Rs. 1102131.