Infosys share price tag soared 4% on Thursday morning to trade as the major Sensex gainer as investors reacted to the quarterly final results posted by the enterprise. The second-biggest IT services firm stated its consolidated net profit grew 11.9% on-year basis in the July-September quarter to attain Rs 5,421 crore. Infosys reported a 20.5% jump in income to Rs 29,602 crore in the quarter below assessment from Rs 24,570 crore in the year-ago period although announcing an interim dividend of Rs 15 per share. Infosys share price tag has soared 37.6% so far this year, to now sit at Rs 1,785 per share.
“Our stellar performance and robust growth outlook continue to demonstrate our strategic focus and the strength of our digital offerings,” stated Salil Parekh, CEO and MD of Infosys. He added that offered the continued momentum, Infosys has additional elevated its income development guidance to 16.5%-17.5%. Margin guidance has been retained at 22%-24%.
Related News
-
HCL Tech, Infosys, Reliance, Wipro, Zee Entertainment, Mindtree, Coal India stocks in focus
-
Infosys Q2 profit up 11.9% to Rs 5421 cr, raises income forecast for FY22
-
Reliance Industries, Tata Motors, ONGC, Oil India, Infosys, Wipro, Mindtree, Coal India stocks in focus
Should you acquire or sell?
Kotak Securities – Buy
Fair worth – Rs 2,000
Analysts at Kotak Securities think Infosys is a ‘prince among peers’ right after an all-round overall performance by the enterprise. The brokerage firm has elevated income estimates for Infosys and marginally raise EPS estimates. “We forecast good double-digit revenue for the next three years. We raise Fair Value to Rs 2,000, valuing the company at ~30X September 2023E EPS. Infosys is well-equipped for industry-leading growth in the medium term. Infosys will be at the forefront of – (1) core transformation deals, and (2) managing digital journey of clients,” they added. The fair worth set by Kotak Securities implies an upside of 12%.
Emkay Global – Buy
Target price tag – Rs 1,910
Emkay Global stated that they liked the broad-based income development, upward revision in FY22 income development guidance, healthful deal intake, and margin resilience of Infosys. The IT significant managed to sign 22 substantial offers for the duration of the quarter, indicating that the deal pipeline remains healthful, with a superior mix of new and renewal offers providing superior income visibility, stated Emkay Global. “We increase earnings estimates by 0.4%/0.6%/0.4% for FY22/FY23/FY24, factoring in Q2 performance. We maintain Buy with a TP of Rs1,910 at 28x Sep’23E EPS, considering strong earnings momentum and robust demand environment,” they stated.
Yes Securities – Buy
Target price tag – Rs 2,026
Infosys’ income and EBIT margins for the duration of the quarter below assessment had been greater than estimates pinned by Yes Securities. Analysts think that feal booking remains sturdy and would help development momentum. “There are near term margin headwinds as employee attrition has sharply picked up. We expect it to report revenue CAGR of 14.9% with average EBIT margin of 24.7% over FY22‐ FY24. We maintain BUY Rating in the stock with a revised target price of Rs 2026,” they added.