Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal Trades & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<p>India-based data management and analytics firm <a href="https://www.smartkarma.com/entities/eclerx-services-ltd" target="_blank" data-smartkarma-citation="entities:17312:1" rel="noopener">eClerx Services (ECLX IN)</a> released their public announcement document for their latest buyback after market close on 20th September 2021. The buyback was initially proposed in a board meeting on 13th August 2021 and later approved by shareholders (postal ballot) on 16th September 2021.  </p><p>The buyback price has been set at INR2,850/share and eClerx expects to buy up to 1,063,157 shares through a Tender Offer. The total size of the buyback will be approximately INR3bn (~US$41mn). </p><p><em>More below the fold. </em></p><hr><div class="content-remarks"><p><strong>For more on Indian Buybacks, please see <a href="https://www.smartkarma.com/insights/quiddity-india-buy-back-guide-2021-regulations-patterns" target="_blank" data-smartkarma-citation="insights:56892" rel="noopener">Quiddity India Buy-Back Guide 2021: Regulations &amp; Patterns</a> </strong></p></div>

India-based data management and analytics firm eClerx Services (ECLX IN) released their public announcement document for their latest buyback after market close on 20th September 2021. The buyback was initially proposed in a board meeting on 13th August 2021 and later approved by shareholders (postal ballot) on 16th September 2021.  The buyback price has been set at INR2,850/share and eClerx expects to buy up to 1,063,157 shares through a Tender Offer. The total size of the buyback will be approximately INR3bn (~US$41mn). More below the fold. For more on Indian Buybacks, please see Quiddity India Buy-Back Guide 2021: Regulations &amp; Patterns 

External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

External broker reports(aggregated public sources)

Equity Bottom-Up

<p>About the stock: Coforge offers system integration, apps &amp; BPO services to BFSI, travel &amp; healthcare verticals</p><ul><li>Coforge’s revenues and PAT have grown at a CAGR of ~12% each over the past five years</li><li>Healthy OCF, EBITDA (~75%) and robust return ratios (RoCE &gt; 20%)</li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

About the stock: Coforge offers system integration, apps &amp; BPO services to BFSI, travel &amp; healthcare verticalsCoforge’s revenues and PAT have grown at a CAGR of ~12% each over the past five yearsHealthy OCF, EBITDA (~75%) and robust return ratios (RoCE &gt; 20%)Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Coforge: Healthy Organic Performance, Robust Guidance

External broker reports(aggregated public sources), Axis Direct

Axis Direct

<p>We recommend a BUY and assign 37x P/E multiple to its FY23E earnings of Rs 139.5/share which gives a TP of Rs 5,220 /share, implying an upside of 10% from CMP</p>
<div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

We recommend a BUY and assign 37x P/E multiple to its FY23E earnings of Rs 139.5/share which gives a TP of Rs 5,220 /share, implying an upside of 10% from CMP
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Coforge: Sturdy Growth, Healthy Deal Pipeline

External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

<p>Coforge Ltd (COFORGE) reported strong organic revenue growth of 7% QoQ CC in 1QFY22, above our estimates of 3% QoQ CC. Including the two months of revenue contribution from SLK, revenue growth stood at 16% QoQ (USD), far higher than our exp. of 10.3% QoQ. Growth was driven by deal ramp-ups in the Americas (+30% QoQ, including the SLK impact). It reported another quarter of strong order intake of USD318m (the highest ever), implying 1.6x book-to-bill. This also included three large deals, with one USD105m deal win.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Coforge Ltd (COFORGE) reported strong organic revenue growth of 7% QoQ CC in 1QFY22, above our estimates of 3% QoQ CC. Including the two months of revenue contribution from SLK, revenue growth stood at 16% QoQ (USD), far higher than our exp. of 10.3% QoQ. Growth was driven by deal ramp-ups in the Americas (+30% QoQ, including the SLK impact). It reported another quarter of strong order intake of USD318m (the highest ever), implying 1.6x book-to-bill. This also included three large deals, with one USD105m deal win.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Strong all-round delivery; valuation remains full

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

<p><a href="https://www.smartkarma.com/entities/niit-technologies-ltd" target="_blank" data-smartkarma-citation="entities:8639:1" rel="noopener">Niit Technologies (NITEC IN)</a> announced a 3.13% Buyback Offer at a premium (INR 1725/share) had been approved in December 2019. Shares popped and traded in larger volume. This was a good signal from the management and promoter.</p><p>Foreigners ended up increasing their stake in the first quarter as retail and some local mutual funds sold the pop. </p><p>COVID-19 measures and lockdowns meant a delay in SEBI approval, which was further extended. Finally in mid-May, SEBI arranged for some temporary relaxation of regulations, which meant NIIT Technologies could proceed more quickly. It launched the buyback three weeks ago with an Offer Period starting 29 May and closing on 11 June. Paperwork is due 13 June. But this works if you owned the shares as of Record Date 12 March 2020. </p><div class="content-highlight"><p>If you owned the shares at the time, this is worth a look. </p></div>

Niit Technologies (NITEC IN) announced a 3.13% Buyback Offer at a premium (INR 1725/share) had been approved in December 2019. Shares popped and traded in larger volume. This was a good signal from the management and promoter.Foreigners ended up increasing their stake in the first quarter as retail and some local mutual funds sold the pop. COVID-19 measures and lockdowns meant a delay in SEBI approval, which was further extended. Finally in mid-May, SEBI arranged for some temporary relaxation of regulations, which meant NIIT Technologies could proceed more quickly. It launched the buyback three weeks ago with an Offer Period starting 29 May and closing on 11 June. Paperwork is due 13 June. But this works if you owned the shares as of Record Date 12 March 2020. If you owned the shares at the time, this is worth a look. 

NIIT Technologies Tender Buyback - Offer If You Can

India

Coforge Limited provides information technology services. The Company serves customers in India.

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Coforge (COFORGE IN)

EClerx Buyback: Adding Fuel to Momentum

India based data management firm eClerx Services launched a US$40mn buyback which is expected to open next month. Fundamentally, the stock appears...

Janaghan Jeyakumar, CFA

Coforge: Healthy Organic Performance, Robust Guidance

Coforge offers system integration, apps & BPO services to BFSI, travel & healthcare verticals. Coforge’s revenues and PAT have grown at a CAGR of...

ICICI Securities Limited

Coforge: Sturdy Growth, Healthy Deal Pipeline

We recommend a BUY and assign 37x P/E multiple to its FY23E earnings of Rs 139.5/share which gives a TP of Rs 5,220 /share, implying an upside of...

Axis Direct

Strong all-round delivery; valuation remains full

Coforge Ltd (COFORGE) reported strong organic revenue growth of 7% QoQ CC in 1QFY22, above our estimates of 3% QoQ CC. Including the two months of...

Motilal Oswal

NIIT Technologies Tender Buyback - Offer If You Can

Niit Technologies (NITEC IN) announced a 3.13% Buyback Offer at a premium (INR 1725/share) had been approved in December 2019. Shares popped and...

Travis Lundy

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