Infosys Ltd. share price target

INFO's Q1FY22 revenue growth of 4.8% CC QoQ outperformed our estimate of 3.8% CC and street expectations of 3.8% USD

We recommend a BUY rating on the stock and assign a 26 x P/E multiple to its FY23E earnings of Rs 61.9/share to arrive at a TP of Rs 1,620/share, implying an upside of 10% from CMP.

Adverse employee-mix ratio led to higher average wage growth, up from 3% in FY20 to 5% in FY21 despite offshoring at all-time high. Infosys's FY21 annual report titled Cloud Chaos to Clarity showcases how aggressive cloud adoption globally has opened many new avenues. Infosys believes that its dynamic Cobalt services will deliver accelerated cloud...

Infosys Limited provides IT consulting and software services, including ebusiness, program management and supply chain solutions. The Group's services include application development, product co-development, and system implementation and system engineering. Infosys targets businesses...

Improving IT spend, large deal momentum key positive We expect IT spends to improve led by cloud migration, increased spend by companies in customer & employee experience (P&L; led investment) and ancillary technologies like AI, IOT, data analytics. Infosys is in a sweet spot to capture this growth considering the investment it has made in digital technologies. This, coupled with an increase in outsourcing in the US and Europe, vendor consolidation opportunities, captive carve outs and cost take out deals will further boost its revenues. In addition, Infosys has...

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.