Broker’s call: Datamatics Global (Buy)

Target: INR 599

CMP: INR 581.60

Datamatics Global Services It caters to a number of industry sectors such as Banking, Finance, Insurance, Manufacturing, Telecom, Retail and Publishing. The company focuses on emerging and scaling businesses through partnership and acquisition.

Datamatics has continued to focus its efforts towards delivering customized, intelligent and innovative solutions, powered by AI, machine learning, robotics, IoT, cloud and mobility. We expect the company to have a better opportunity in automation, robotics and artificial intelligence due to early entry into this segment.

Robotic Process Automation (RPA) could be another game-changer in the IT industry. Datamatics entered the segment long before its peers. RPA solutions can help organizations simplify, automate, and transform customer business.

Datamatic’s strong order flow, stable financial profile led by steady revenue growth, strong liquidity profile, healthy internal benefit generation, comfortable capital structure and Promoters’ extensive experience in the IT industry and IT systems put us at ease.