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- Global brokerage Jefferies is bullish on CMS Info Systems, highlighting its robust top-line growth and increased annual profits.
- Jefferies has upgraded the target price for CMS Info Systems by 40%, setting it at ₹600, and maintains a ‘buy’ rating.
- “As diversification plays out, we see potential for re-rating. We raise target price to ₹600 based on 19x Jun-26 PE and add this among our top-picks in mid-cap space with ‘buy’ rating,” reported Jefferies.
CMS Info Systems shows promising growth and diversification, making it a top pick for investors looking for robust returns in the mid-cap segment.
Healthy top-line and core profit growth
In the March quarter, CMS Info Systems reported a 25% year-on-year growth in revenues, driven by significant growth in managed services and card segments.
Ramp-up of non-cash transaction business to lift growth, aid diversification
Jefferies notes the impressive ramp-up in non-cash transaction segments like managed services, which are expected to support revenue growth and diversification of earnings.
Estimates raised, re-rating catalysts ahead
With raised profit estimates and potential M&A activities, Jefferies sees a re-rating opportunity for CMS Info Systems, supported by diversification into newer business areas.
Conclusion
With a revised target price and strong growth in non-cash transaction segments, CMS Info Systems is positioned for potential re-rating and offers attractive investment opportunities in the mid-cap space.
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