Updater Services - Diversified Play On High-Growth Business Services: Motilal Oswal Initiates Coverage

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Updater Services Ltd. is one of the leading business service providers in India, with a presence in integrated facilities management and other business support services segments such as sales enablement, BPS, recruitment, and sales audits. We see the company as a unique opportunity to benefit from the long-term trend of outsourcing non-core business operations for greater efficiency and service quality. With continued momentum in the integrated facilities management space (growing in the high teens), and an inorganic growth engine in the high-margin BSS vertical, we expect Updater Services to deliver sustainable and profitable growth. We expect its earnings compound annual growth rate (~33%) to outpace revenue CAGR (~19%) over FY24-FY26. The company sees inorganic growth, along with continued exceptional performance, as a core feature of its long-term growth strategy. This growth will be supported by its healthy cash balance of ~Rs 2,534 million (10% of market cap) and a strong cash conversion rate (115% operating cash flow/Ebitda in FY23). Considering the steady revenue and earnings growth potential, Updater Services’ valuation looks inexpensive at 13 times FY26E adjusted earnings. Initiate coverage with a 'Buy' rating and a target price of Rs 465 (premised on 18 times FY26E price/earnings on adjusted earnings per share)..Click on the attachment to read the full report:.Eris Lifesciences, Alkem, Mankind, Torrent Pharma - Steady Growth Story: HDFC Securities Initiates Coverage.DISCLAIMERThis 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.

Updater Services - Diversified Play On High-Growth Business Services: Motilal Oswal Initiates Coverage

Initiates coverage with a 'Buy' rating and a target price of Rs 465. 5 (premised on 18 times FY26E price/earning on adjusted EPS).

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Updater Services - Diversified Play On High-Growth Business Services: Motilal Oswal Initiates Coverage

Initiates coverage with a 'Buy' rating and a target price of Rs 465. 5 (premised on 18 times FY26E price/earning on adjusted EPS).

Choose a plan

Follow Us

DOWNLOAD THE APP