SIS Q2 Results Review - International Business Faces Short-Term Hurdles: Motilal Oswal

Motilal Oswal Report

With the liberalisation and formalisation of labor markets and laws, SIS Ltd. should be among the biggest direct beneficiaries. It has managed to gain market share during the last few years, and the trend is expected to continue.

We value SIS using SOTP:

1. DCF for the India Security business (Rs 291),

2. an enterprise value/Ebitda multiple of eight times (Rs 130) for the International Security business (in line with global peers), and

3. DCF for the FM business (Rs 113) less net debt (Rs 106).

Consequently, we arrive at our target price of Rs 480. We reiterate our Buy rating on the stock.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.