Infosys Limited - INFY attended Infosys’ Analyst Meet, where the company largely showcased its progress around digital technologies. We marginally reduce our 2Q estimates to reflect near-term headwinds (RBS & consulting division). Our conviction on INFY remains intact led by (1) Improving market share, buoyed by large deal wins, (2) Higher resilience in BFSI over peers, (3) Increased automation impact on efficiencies in fixed-price contracts (44% of revenue), (4) Continued evidence of ‘renew’ as seen in the multi-vertical/services skilling plus a recast of sales performance incentives, and (5) Proof of better execution (stable sub-con expense) ably supported by the early success of the ‘MANA’ automation/AI platform.

They revise FY17E US$ revenue growth to 9.7% (10.7% earlier) factoring near-term client-specific headwinds while EPS remains unchanged on EBIT% of 25.5/26.1% for FY17/18E. INFY is attractive at 13.6x FY18E (20% discount to TCS’ valuations) and we maintain BUY with TP of Rs 1,350, 18x FY18E EPS.