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

The company focuses on rationalising loss-making/tail accounts; hence the brokerage reiterates 'Buy' rating on the stock.

Security services provided by SIS Ltd. (Source: Company website)

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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:

Motilal Oswal SIS Q2FY25 Results Review.pdf
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Also Read: SBI Cards Q2 Results Review - Asset Quality Pain Continues; Margins Contract Further: Motilal Oswal

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