Infosys Ltd. share price target

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' (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.

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...

Infy reported phenomenal revenue growth of +5.3% QoQ CC, beating our expectations by 2.4%. Growth beat was driven by revenue gains by strong deal TCV of 1HFY21 and earlier quarters. Digital revenues grew by 31.3% YoY CC and contributing to 50.1% to total revenues (vs 47.3% in 2Q21 and 44.5% in 1Q21). Revenue growth was broad based led by 9.8% QoQ USD rise in BFSI (led by ramp up of Vanguard deal) 10.8% QoQ USD rise in Life Sciences and 8.5% QoQ rise in Manufacturing. Infy posted a strong margin of 25.4% (Ple: 24.9%, Cons:25.1%). Improving onsite pyramid, offshore and nearshore mix,...

Digital acceleration, large deal continue to be growth drivers We believe the technology sector will witness multi-year growth in coming years led by traction in digital technologies. Infosys is in a sweet spot to capture this growth considering the investment it has made in digital technologies. This, coupled with 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 executed well on large deal conversion and is expected to be a key driver of...