Outlook & Valuation
NIIT Tech reported steady revenue/PAT number in 9MFY18. Management guided positively on the order intake and deal pipeline. Going ahead, we expect some client specific headwinds (Morris JV) in Q4FY18 and H1FY19 but still anticipate strong double digit revenue growth in FY19. We anticipate its rupee revenue/PAT to grow at a CAGR of 7%/14%, respectively, over FY17-19E. We value NIIT Tech at ~14x of its FY19E EPS to arrive at sell rating with target price of INR 740/share for next 12-15 months.