Infosys Ltd. share price target

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,...

Infosys (INFO) reported constant currency (CC) USD revenue growth of 5.3% QoQ (v/s our estimate of 3.2%) in 3QFY21. This is its best QoQ growth in the last eight years. Growth was broad-based across verticals and regions. In 9MFY21, revenue (USD)/EBIT/PAT grew by 3.8%/26%/16.4%. The company reported its best ever TCV of USD 7.1b (net new wins of 73%), 2x book-to-bill, and above the combined TCV of the last three quarters....

Infosys' (INFO) had another quarter of an all-round beat to ours and consensus forecast. Q3FY21 revenue grew by 5.3% QoQ in CC and 6.2% QoQ in US$ vs. our forecast +2.4% in CC. EBIT margin improved by 7bps QoQ to 25.4% vs. our forecast of 24.6%. EPS of Rs12.2, +7.2%/+16.5% QoQ/YoY was also a beat to our forecast. Q3FY21 saw an all-time high large-deal TCV of US$7.13 bn (net-new being ~73%). Further, the increase in FY21 guidance was also a beat. INFO has now guided for CC revenue growth of 4.5-5% vs. 2-3% earlier and EBIT margin of 24-24.5% vs. 23-24%. Further, it is confident of a double-digit revenue growth in FY22....

Infosys' (INFO) Q3FY21 dollar revenue growth of 6.2% QoQ beat our estimate of 3.5%, with the company also posting its highest-ever TCV of US$ 7.1bn.

Infosys delivered another stellar quarter, beating our and consensus estimates on revenues and margins. Revenues grew 6.2% QoQ (highest in Q3 in 8 years) to USD3.5bn. Digital revenues rose 12.4%/33.8% QoQ/YoY, contributing over 50% of overall revenues. Infosys raised its FY21 revenue growth guidance to 4.5-5% in cc terms (earlier 2-3%) and EBITM guidance range to 24-24.5% (earlier 23-24%) based on 9M performance and robust deal wins. Revenue guidance implies 0.5-2.5% QoQ growth in Q4. signed in YTD FY21 was ~USD12bn (+63% YoY) with net new deal wins of USD8.2bn (~3.3x YoY). The deal pipeline is healthy (tad lighter after strong conversions in Q2/Q3)....

Rising adoption of smartphones, high internet speed and social distancing (due to Covid-19) has changed consumer behaviour. Consumers now prefer to transact (buy a product) virtually over the smartphone via an app instead of physical transaction. This has led to virtualisation of business models. In addition, to keep business up and running in a work from home scenario, technology is gaining traction. As a result, new age technologies like cybersecurity (to protect business from work from home scenario), app development (to help customer transact virtually) and Cloud (to enable...

We recommend BUY and assign 24x P/E multiple to its FY23Eearnings of Rs. 58.5 per share which gives a TP of Rs. 1,404 per share, an upside of 15%.

Infosys has not announced size of the deal but we expect the size to be substantial as it involves multiple deliverables. Daimler and Infosys Announce Strategic Partnership to Drive Hybrid Cloudpowered Innovation & IT Infrastructure Transformation in the Automotive...

Large deals, digital key growth driver for company Infosys at its analyst meet highlighted that the pace of digital acceleration has increased after Covid. The key digital technology is gaining traction are cloud (US$500 billion opportunity over the next three years), data, AI, cybersecurity, platforms, IOT and modernisation of apps. In the next four to five years every major companies are expected to migrate to cloud. Further, the company highlighted that digital, large deals, client mining and opening of new accounts are expected to be key revenue drivers. Infosys has signed...

We attended Infosys (INFO)'s Analyst Day, wherein the management shared their views on the industry outlook and drivers for future revenue and margin expansion. Here are the key highlights from the meet: Overall, the commentary from Infosys was quite positive as the management expressed a) their confidence about returning to pre-COVID growth levels; b) scope for a further upside on operating margins; c) significant opportunity from the shift to cloud; d) acceleration in the deal pipeline since the pandemic. It further highlighted the ambition to eventually have 33% of the workforce...