Thursday, 20 November 2008

Buy Everonn Systems: HDFC Securities

HDFC Securities has maintained its buy rating on Everonn Systems India in its November 20, 2008 research report. "Everonn’s Q2FY09 standalone revenues jumped 49% YoY. We expect Everonn to record revenue CAGR of 63.3% and PAT CAGR of 61.5% over FY08 to FY10E, making it the second fastest growing company under our coverage. We believe that Everonn’s revenue mix will shift towards the high margin ViTELS segment, thereby improving overall profitability and ROCE."

"In FY08, ViTELS segment contributed 41% to overall revenues and 50% to EBITDA. Considering the market scenario, converting the warrants at Rs 720 per share will be a concern going forward. However, the company has Rs 800 million as cash on its books as on Q2FY09. Considering the growth prospects of the company we maintain our ‘BUY’ rating on the stock," says HDFC Securities' research report.

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Source: Moneycontrol

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