Analysts' Picks: OnMobile Global.

>> Wednesday, November 19, 2008

OnMobile Global
Cmp: Rs 214 
Target - 330
Ambit Capital has maintained a ‘buy’ rating on OnMobile Global while lowering the price target after the company revised its internal growth guidance apart from delaying the launch of its new product (AdRBT). “With the deteriorating macro-economic scenario and extenuating market condition, OnMobile Global management has revised its internal growth guidance to 50-55% as against the earlier guidance of 60-65%,” says the report. 

It further adds that the delay in rollout of AdRBT and a slower VAS deployment by clients have further negatively impacted estimates. According to the report, the company reported a muted performance during Q2FY09 with net profit growing by 21% Q-o-Q to Rs 183.5 million as against Rs 151.7 million sequentially. “OGL also guided for a lower net margins down from earlier 20-22% to 20-21% for FY09e,” says the report.