{
  "id": 6148138,
  "title": "Broker’s call: ESDS Software (Buy)",
  "url": "https://urgent.news/2026/09/07/brokers-call-esds-software-buy",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-07T16:13:00.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/brokers-call-esds-software-buy/article71439751.ece"
  },
  "original_language": "en",
  "account": "ESDS Software has been given a 'Buy' rating by brokers, with a target price of ₹1,550, valuing the company at 18x FY28E EV/EBITDA. Analysts view ESDS as one of the most compelling listed opportunities to gain exposure to India's growing cloud, data-center and AI infrastructure build-out. The company's full-stack capabilities across cloud, managed infrastructure and data-center services are key to its success. ESDS expects revenue, EBITDA and PAT growth rates of 120.9/72.6/81.3% CAGR over FY26–29E, fueled by capacity expansion, deeper customer monetisation and operating leverage. The recent $1.25 billion AI contract adds a significant new leg to ESDS's earnings trajectory. The 18x FY28E EV/EBITDA valuation implies a forward P/E of about 31x, which the analysts believe accurately reflects ESDS's robust growth profile. Successful execution and a faster ramp-up of the AI contract could provide further upside. Potential risks include AI deal execution, customer concentration, capex intensity and competition, which could delay earnings ramp-up, pressure utilization, margins and returns.",
  "summary": "Choice Broking",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}