Broker’s Call: Datamatics Global (Buy): ₹557.45

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Target: ₹606

CMP: ₹557.45

Datamatics Global Services Ltd is engaged in three key segment digital operations, digital experience and digital technology. The company operates across various sectors, such as BFSI, manufacturing, hospitality, publishing, and international organisations, among others.

Datamatics added 14 new customers in Q1FY24, mainly in the US and European markets, 58 per cent YoY increase in the active pipeline. Total customers stood at 300+. Overall the demand environment looks positive. 

The deal pipeline for the next year remains strong and the company is likely to add clients, going forward. We expect that the company could report 13.3 per cent and 18.2 per cent revenue growth in FY24 and FY25, respectively. Datamatics plans to concentrate on Digital Transformation, Intelligent Automation, Automatic Fare Collection (AFC), using its proprietary IP Products (TruCap+,TruBot, iPM, TruBI, TruAto report high volume of new work in the next five years, including industry-vertical-oriented operations and enterprise back office operations. Besides, Robotic Process Automation and Artificial Intelligence are emerging segments in the industry.

 Robotic Process Automation (RPA) could be another game changer for IT Industry. Datamatics has entered into the segment much before its peers. RPA solutions can help enterprises simplify, automate and has been successfully using Robotic Process Automation (RPA) technology as a key enabler to help clients in their digital transformation journey.