Polaris Consulting jumps on brokerage rating

Polaris Consulting & Services surged 7.03% to Rs 211 at 12:51 IST on BSE on reports a domestic brokerage has maintained buy rating on the stock.

Meanwhile, the S&P BSE Sensex was down 34.92 points or 0.12% at 29,426.53. The S&P BSE Small-Cap index was up 46.59 points or 0.31% at 14,927.75.

On the BSE, 2.57 lakh shares were traded on the counter so far as against the average daily volumes of 66,632 shares in the past one quarter. The stock had hit a high of Rs 216.20 and a low of Rs 205 so far during the day.

The stock had hit a 52-week high of Rs 217.15 on 18 May 2016 and a 52-week low of Rs 141.10 on 9 November 2016. It had outperformed the market over the past one month till 13 April 2017, advancing 9.04% compared with the Sensex's 1.78% rise. The scrip had also outperformed the market over the past one quarter, gaining 23.84% as against the Sensex's 8.16% rise.

The small-cap company has equity capital of Rs 51.06 crore. Face value per share is Rs 5.

The acquisition of Polaris Consulting & Services (PCSL) by Virtusa has opened up significant opportunities for the company, the broker said. PCSL can now offer end-to-end solutions in banking, financial services, insurance (BFSI) industry resulting in more clients, service offerings and digitization related projects.

Post the acquisition PCSL has restructured its clients and eliminated low margin clients leading to effective utilization of its resources, the broker reportedly said.

On consolidated basis, Polaris Consulting & Services' net profit rose 15.82% to Rs 47.65 crore on 1.72% growth in net sales to Rs 515.45 crore in Q3 December 2016 over Q2 September 2016.

Polaris Consulting & Services is a leader in solutions and services that enable operational productivity for the global financial services industry.

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