Infosys Ltd. share price target

13 July 2018 guidance of 6-8% YoY was on expected lines, but marginally better considering a weaker exit in 4Q (0.6% CC) than we anticipated (1.5% CC), implying that the CQGR will be better if the guidance is met. growth guidance of 6-8% and EBIT margin band of 22-24% remain unchanged. However, on the margins front, we expect the company to come slightly investment budget for the year, and [2] 1Q is seasonally the weakest for margins and INFO is already close to the higher end of the band. However, while US BFS saw large deal wins, Europe BFS turned soft, keeping our expectations modest for now. Although it looks like INFO will achieve the lower end of its guidance in FY19, we continue to reckon the margin band is conservative, with the share of Digital inching up, recent INR depreciation, and investments already defined internally.

Infosys (INFO) reported a modest 2.3% QoQ constant currency revenue growth in 1QFY19; the operational construct 2.6% QoQ volume growth in services (highest in the last 10 quarters) and USD 1.1bn large deal wins (highest in the last 7 quarters) lends comfort on the outlook. Management commentary was optimistic on pick-up of project activity in troubled verticals such as Retail and US Financial Services, and a healthy deal pipeline. The retention of EBIT margin guidance despite the INR depreciation could disappoint some, but we see that as prudent given the concurrent cross-currency headwind. INFO emphasised it is not linking its planned investments in capability build with the currency movement indicating...

Large deal TCV saw a decent qoq rise to US$1.1bn v/s US$0.9bn in Q4FY18. However, we believe that the number is still small relative to its size and TCS' large deal wins (Infosys book to bill at 0.4 v/s ~1.0 for TCS). For the first time ever, Infosys is choosing growth over profitability, but frequent change in CEO/strategy would not translate into growth revival soon Stability' scenario to stay and Momentum and Accelerate' phase will take time. Maintain our SELL rating with a...

According to IDC, global IT spending is expected to rise to USD 4.8 trillion in FY19 , with US accounting for approximately USD 1.5 trillion of the market. As the US market is the major source of revenue for the company, we expect that the increased global IT spending will be positive for the company. Revenue from operations is estimated at Rs. 771.72bn and Rs. 841.92bn, respectively, in FY19 and FY20 as overseas revenues are expected to increase. PAT is estimated at Rs. 152.4bn and Rs. 165.8bn, respectively, in FY19 and FY20. Lower PAT in FY19 is on account of USD 233mn tax, which the company expects to pay over the...

Mr Salil Parekh outlined company's three-year road-map viz., FY19 gain stability, FY20 build momentum and FY21 accelerate growth. We continue to believe that its Four-pillar strategy would enable Infosys to drive higher growth. We maintain our forecast and expect revenue growth to improve to 7.6%/9.6% (in CC) in FY19/20 from 5.8% in FY18. Our forecast factors FY18/19 revenue (US$)/EPS CAGR of 9.1%/6.7%. We maintain ACCUMULATE and TP of Rs1,232 based on 16x FY20E. Key Highlights and Investment Rationale...

We attended Infosys' analyst day, wherein the management detailed its four pillar strategy- 1) scaling agile digital business (current run rateUS$2.8 billion in revenue), energising the client's core technology landscape via AI & automation, reskilling its employees, and expanding localisation in markets like the US, Europe and Australia. Taking into account, the changes Infosys has undergone in last 12-24 months, it has outlined its strategy roadmap over three years. In the first year FY19stabilise the business, second year FY20- build momentum and in the third year FY21- accelerate growth. The execution towards the above strategy would be closely watched. We maintain our HOLD...

On its Analyst Day, INFO's new CEO Mr Salil Parekh shed more light on the four pillars of its strategic plan: [1] scaling agile digital, [2] energizing the core, [3] re-skilling people and [4] expanding localization of talent. INFO's well-articulated strategy in digital, sales, talent re-skilling and localization,coupled with the USD2.79b base of digital revenues, provides a good base to kick-off its next innings. With previous distractions behind, INFO's focus is back on execution. The company cited that FY19 will be a year of stabilization, FY20 a year of momentum building, and FY21 a year of acceleration. It, however, refrained from divulging any further details about the implications of this strategy on its absolute/relative financial performance.

Infosys Ltd.'s January-March quarter earnings matched estimates, but market is disappointed by the company's margin guidance. India's second largest IT firm Infosys reported a 28 per cent drop in sequential net profit at Rs 3,690 crore for the March quarter. It had reported a net profit of Rs 5,129...

Revenue grew by 2.26% to Rs. 15984.0 Cr in Q4FY18 when compared to the previous quarter. Infosys Ltd Q4FY18 results comment

ICICI Securities Ltd | Retail Equity Research US$ revenues grew 1.8% QoQ to $2,805 million, in line with our 1.9% growth and $2,807 million estimate. Constant currency revenues grew 0.6% QoQ vs. our estimate of 1% QoQ Rupee revenues grew 1.6% QoQ to | 18,083 crore, largely in line with our | 18,065.3 crore estimate At 24.7%, EBIT margins expanded 40 bps QoQ, above our 24.3% estimate mainly due to lower-than-expected employee expenses...