MOSL: TEAMLEASE SERVICES (Buy)-Volume growth and its operating leverage continues
TeamLease Services: Volume growth and its operating leverage continues
(TEAM IN, Mkt Cap USD0.7b, CMP INR2987, TP INR3550, 19% Upside, Buy)
Revenue growth misses estimate; net margins improve
- 4QFY19 revenues at INR11.6b grew 19% YoY (below our est. of +24.2% YoY); EBITDA at INR257m grew 13% YoY (nearly in line with our est. of +15% YoY); PAT at INR260m grew 20.8% YoY (v/s est. of +16.4% YoY).
- For FY19, revenue/EBITDA/PAT grew 22.7%/37%/33.5% YoY.
- General Staffing Associates grew by 1,402 QoQ (+1% QoQ; 16% YoY) to 154,095 (below our est. of 4,000 additions QoQ). The miss was a function of pronounced 4Q seasonality. Specialized staffing saw a decline of 170 associates QoQ to 5,947 (below our est. of 6,424).
Teamlease Services Ltd. Teamlease Services Limited is an India-based company engaged in employment activities. The Company operates as a temporary staffing company and provides human resource services to various industries. Its segments include Staffing Operations, Recruitment Operations and Training Operations. Its services include Temporary Staffing or Temping, Recruitment Services, Regulatory Compliance Services, Retail Learning Solutions (RLS), Institutional Learning Solutions (ILS), Apprenticeship Program (NETAP), TeamLease Skills University and Payroll Processing. It works across industry verticals, including consumer durables, retail, telecom, chemical, e-commerce, pharmaceuticals and healthcare sectors. Its permanent recruitment business is supported by its Candidate Lifecycle System technology platform. It offers training programs in information technology (IT), finance and retail. Its institutional learning solutions business provides skill development services under various Government schemes.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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