Infosys Ltd. share price target

Infosys (INFO) reported 4QFY21 constant currency (CC) USD revenue growth of 2% QoQ, below our estimate of 3.1%, as a higher offshore revenue share (100bp) partially offset the strong volume growth of 4.6% QoQ. 4QFY21 EBIT margin declined 90bp QoQ, marginally below our estimate, due to a 130bp wage hike impact and higher subcontracting expenses (+50bp QoQ, highest in the last five years), despite more offshoring and cost optimization. In FY21, revenue (USD)/EBIT/PAT grew 6.1%/30.7%/17.5%. The management guided at FY22 USD revenue growth/EBIT margin of 1214% CC YoY/22-24%. It also characterized the current demand environment...

We recommend BUY and assign 25x P/E multiple to its FY23E earnings of Rs. 63.1 per share which gives a TP of Rs. 1,550 per share, an upside of 12%.

continued to grow at strong rate of34.4% YoY CC. Manufacturing (+6.1% QoQ wins of $2.1 Bn taking FY21 order book to $14.1 Bn, +57% YoY. Management has guided 12-14% YoY CC growth in line with consensus estimates. Infy reported margin of 24.5%, -100bps QoQ, +330 bps YoY (Ple: 24%, Cons:24%), 50 bps higher than our estimates, led by better utilization (82.2%) and lower than expected hike impact (130bps). Management mentioned that aggressive hiring will reduce utilization and reduce supply side pressures. Hiring for the quarter was strong at 10,307 net addition and they plan to hire...

Infosys' (INFO) Q4FY21 revenue growth of 2% CC QoQ was in line with our estimate of 1.9%, with the company also posting robust TCV of US$ 2.1bn.

Infosys Q4 Profit Contracts, But FY22 Revenue Guidance Robust Infosys for the quarter ended Mar 2021 registered a consolidated sales of Rs 26311 crore, a growth of just 1% QoQ and 13% yoy basis. On USD terms the revenue for the quarter was up by...

Infosys' (INFO) Q4FY21 result was in-line with our forecast with a slight miss on revenue front. Q4FY21 revenue grew by 2% QoQ in CC. vs. our forecast of +2.6%. EBIT margin declined by 95bps QoQ to 24.5% vs. our forecast of 24.4%. EPS of Rs12, was -2.3%...

We expect the IT sector revenue to grow at 14.4/10.8% (in USD terms) for FY22/23E with mid-tier IT growth to come in at 15.1/12.5%. We expect a margin expansion of ~55ps over FY21-23E (10/45 bps expansion in FY22/23E), following a 220bps expansion in FY21, leading to ~17% EPS CAGR over FY21-23E. We remain higher than consensus (HSIE EPS is ~6% ahead for FY23E) and expect the outperformance to continue. We increase multiples for Mindtree/Cyient/Zensar/Sonata and roll forward to Mar-23E for our coverage universe. Earnings for Wipro is revised downwards by 6.5/3.9% due to acquisition impact while we have increased estimates for Mindtree/Zensar/Sonata/Teamlease. We prefer INFY, HCLT, Persistent and Sonata We hosted our 5th Tech Investor forum with 20 corporates/experts participating in the event (virtual). The participants represented the full spectrum: (1) Large-cap IT services (TCS, Infosys, Wipro, Tech Mahindra, L&T; Infotech), (2) IT/ER&D; midcaps & small caps (Mphasis, L&T; Technology, Mindtree, Tata Elxsi, Happiest Minds, Zensar, Sonata, Intellect and Mastek), (3) Staffing (Teamlease) and (4) Tech industry experts (IBM, Capgemini, Salesforce, ISG, and Captive expert ANSR). The commentary across companies/experts indicated a continuation of multi-year industry tailwind (cloud acceleration) and optimism around the sector hitting and sustaining double-digit growth rate was validated

capabilities around Digital, Automation and efficiency have become key. The management is seeing demand coming from cost takeout deals and...

We recommend a BUY with a target price of Rs 1,495.