Jefferies has initiated coverage on Inventurus Knowledge Solutions (IKS) with a ‘Hold’ rating, citing strong revenue growth potential but limited upside due to high valuations. The brokerage has set a target price of ₹1,575, based on a 30x PE multiple for FY26 earnings.
IKS is a technology-enabled outsourcing firm that primarily serves US-based healthcare providers. Jefferies believes the company is well-positioned to benefit from rising demand for outsourcing in the healthcare sector, given its integrated service offerings. The brokerage forecasts a 14% compound annual growth rate (CAGR) in revenue (in US dollars) over FY25-27, supported by EBITDA margin improvement and deleveraging efforts. This, in turn, is expected to drive 34% EPS CAGR over the same period.
Despite the strong growth outlook, Jefferies highlighted concerns over valuation. IKS is currently trading at 36x FY26 projected earnings, which represents a 50-90% premium compared to its industry peers. The brokerage believes this high valuation limits the stock’s potential upside, leading to the ‘Hold’ rating.
Investors will closely watch IKS’s margin trajectory and execution on revenue growth to assess whether it can justify its premium valuation in the coming years.
