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Yes Securities has buy call on SIS with a target price of Rs 615. The current market price of SIS Ltd. is Rs 487.15 Time period given by analyst is one year when SIS Ltd. price can reach defined target. SIS Ltd., incorporated in the year 1985, is a Mid Cap company (having a market cap of Rs 7220.69 Crore) operating in Services sector.

SIS Ltd. key Products/Revenue Segments include Income from Investigation & Security Services, Other Operating Revenue, Electronic Security Systems and Other Services for the year ending 31-Mar-2021.

Financials

For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 2652.91 Crore, up .92 % from last quarter Total Income of Rs 2628.67 Crore and down -5.08 % from last year same quarter Total Income of Rs 2795.01 Crore. Company reported net profit after tax of Rs 93.07 Crore in latest quarter.

Investment Rationale
Overall, mixed performance for the quarter. While revenue for the quarter was inline, EBITDA margin was below estimates. The growth trajectory remains intact as March’22 revenue run rate was almost 31% more than March’20 level. The growth will be fueled by rising penetration of security and facility management business in India and the shift of market share from unorganized to organized players. The business performance remains resilient even during economic downcycles. Also, the vendor consolidation would benefit large players such as SIS. The brokerage maintains BUY rating on the stock with revised target price of Rs 615/share, based on DCF valuation.

Promoter/FII Holdings
Promoters held 71.62 per cent stake in the company as of 31-Dec-2021, while FIIs owned 15.12 per cent, DIIs 4.43 per cent.

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