Ventura Capital is betting big on Intrasoft Technologies and have initiated coverage on the stock with a buy rating. The broking house expects a target price of Rs 1555 on the stock in 18 months.

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In an interview with CNBC-TV18 Arvind Kajaria, MD of the company spoke about the outlook for the company going forward.

Kajaria said their investments in technology has started to pay off and the historical growth rate of 25-30 percent is possible going forward as well. However, competition will remain a challenge, he added.

Retail basically is a topline game and the more topline you achieve, the better negotiating power we have with vendors, said Kajaria. However, there could be pressure on EBITDA and margins going forward because we would have to continue to invest in tech and hire experts.

He said they have a very strong brand name and most vendors are dependent on them.

The company provides services to e-commerce players like Amazon, eBay etc. Almost 70 percent of their revenue comes from Amazon. The company does generate free cash flow.