Infosys Ltd. share price target

We recommend a BUY rating on the stock and assign a 29x P/E multiple to its FY24E earnings of Rs 71/share to arrive at a TP of Rs 2,060/share, implying an upside of 18% from the CMP.

Quarter ended March 2022 compared with Quarter ended December 2021. Net sales (including other operating income) of Infosys has increased 1.28% to Rs 32276 crore. Operating profit margin has declined from 26.31% to 24.31%, leading to 6.41% decline in operating profit to Rs 7,846.00 crore. Employee cost increased from 51.32% to 51.61%. Other expenses rose from 22.37% to 24.08%. Selling and administration expenses rose from...

What should investors do? Infy's share price has grown by ~4.3x over the past five years (from ~| 402 in April 2017 to ~| 1,748 levels in April 2022). We revise our rating on the stock from BUY to HOLD Target Price and Valuation: We value Infosys at | 2,000 i.e. 28x P/E on FY24E EPS...

of 12-14%) despite low TTM TCV of $9.5 bn (vs $14.1 bn last year) led by largest ever large deal pipeline, strong client metrics and net new wins (40% in FY22) indicate Infy's ability to capitalize strong demand environment. We have already baked in 13.8% YoY USD growth for FY23, however negative surprise in margins can be a drag on FY23 EPS. Infy has already reported EBIT margin guidance of 21-23% for FY23 factors in headwinds from supply deeper digital capabilities and potential drop in utilization levels. We assign DCF based TP of INR 1899 (earlier: 2204) with implied target...

Q4 revenue growth muted at 0.7% QoQ USD, below our (4.1%) and street estimates. TCV robust at US$ 2.3bn

INFO reported a weak growth of 1.2% QoQ CC, below our estimate of 2.8%, on account of seasonality, the impact from the COVID-19 pandemic, and client provisions. Large deal TCV of USD2.3b was a tad soft (net new at 48%). However, the management indicated good traction in its large deal pipeline and reiterated that the demand remains strong. EBIT margin dipped 190bp QoQ to 21.6%, below our estimate of 23%, due to lesser days, lower utilization, and higher visa costs. The management guided at a margin of 21-23% for FY23 (100bp cut from its earlier guidance in FY22)....

We recommend a Buy the stock for a target price of Rs 1895 implying an upside of 10% from CMP

Infosys is India's second-largest provider of consulting and IT services