Intellect Design Q1 Results Review: Dolat Capital Downgrades To ‘Add’ On Recent Stock Run-Up — Check Target
Intellect Design Arena Ltd.’s Q1 profitability was impacted by planned, front-loaded investments in the new Purple Fabric AI initiative, but the underlying business fundamentals remain robust.
Exceptional Growth in Cloud/SaaS Revenue
The company reported exceptional 59.5% QoQ growth in high-margin Cloud/SaaS revenue and landmark eMACH.ai-powered deal wins in the competitive US market.
Impact on Margins and EPS Estimates
Although Dolat Capital trimmed its EPS estimates to factor in these investments, the brokerage believes in the immense long-term monetization potential of the AI platform.
Rating Revisions and Target Price
Dolat Capital revises its rating to ‘Accumulate’ from ‘Buy’ with a DCF-based target price of Rs. 1,180 (~30x on FY27E EPS).
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