Birlasoft hits a 52-week high after firm's strong Q3 results; here's what brokerages say

Birlasoft Hits a 52-week High: Software company Birlasoft hit a 52-week high on BSE on Thursday (January 25, 2024) after the firm registered a strong performance in its December-quarter results. 

The stock of the company from the Birla group was trading up by 0.57 per cent, or Rs 4.65, at Rs 827.50 in morning deals on Thursday. 

Its shares have registered exponential growth in the last six months as they have soared by 119.30 per cent.

It has comprehensively beaten the benchmark Nifty 50, which has jumped by 8.31 per cent  in the same duration.

Birlasoft Q3 results

The firm has witnessed a significant improvement in margins in the quarter under review.  

The company's consolidated profit after tax (PAT) jumped by 11 per cent to Rs 161 crore in the December quarter against Rs 145 crore in the September quarter.

It was better than Zee Business research estimates of Rs 140 crore. 

The company's consolidated revenue Quarter-on-Quarter (QoQ) also beat Street estimates.

It delivered revenue of Rs 1343 crore in the December quarter against Rs 1310 crore in the previous quarter.

The revenue in the quarter under revenue was better than analysts' estimates of Rs 1325 crore.

EBIDTA also beat Street estimates as it came out to be Rs 193.3 crore against Rs 185.7 crore, better than analysts' prediction of Rs 180 crore.

The margin also rose to 14.4 per cent in the third quarter compared to 14.2 per cent in the second quarter. The research had estimated it to be 13.6 per cent.

What brokerages say about Birlasoft

Nomura has maintained a buy call on Birlasoft, raising its target to Rs 950 from Rs 840.

InCred Equities, on the other hand, has downgraded its rating to hold from add. It has given a target price of Rs 838.