Recommendation: Buy
CMP = Rs 138
Price target: Rs 194
- ORG Informatics has announced that it has bagged an order worth Rs 255 crore from Bharat Electronics Ltd (BEL) for the convergent billing system that is being implemented for the state-owned Mahanagar Telephone Nigam Ltd (MTNL).
- The order largely involves the supply and integration of the hardware related requirements of the project.
- Consequently, the margins are likely to be lower than the double-digit margins reported by the telecom business segment currently. The order is to be executed over the period of the next 24 months.
- Hence, the future of ORG Informatics over the next couple of months seem to be very bright and hence I recommend Buy option for this stock.
