Infosys Ltd. share price target

company has been reeling under leadership quality issue. As a large proportion of revenue is coming from Top-30 accounts where relationships are directly managed by the CEO, thus it is imperative to have a quality CEO in the management. Infosys nomination and remuneration committee declared the name of...

Upgrade to BUY with TP of Rs 1,325 at 17x FY20E (from 14x). Over the past three quarters, Infosys (INFY) has navigated through a turbulent internal phase (that finally saw the appointment of a new CEO and a revamped board), as well as a challenging business environment. Mercifully, INFY has maintained market-share vs. larger peers (TCS and Cognizant). Revenue leakage in top accounts has abated, with stability in the title holders (top 600 managers) bracket. Currently, attrition here is in-line with long term trends, even as operational metrics are intact (~85% utilisation).

Infosys reported in-line revenue but stronger-than-expected margin. Revenue growth at 1% QoQ (USD term) and margin at 24.3% were maintained despite wage hikes and higher variable payout. Growth was driven by Retail and Energy segments.

Infosys, India's second-biggest software services provider by revenues, consolidated net profit for the three-month period ended 31 December 2017 was Rs 5,129 crore, showing a growth of 38 per cent year-on-year and a 41 per cent growth sequentially. The spurt in profit has been largely due to tax reversal in the US, the company's biggest market. Revenues were at Rs 17,794 crore for the quarter ended 31 December 2017 while operating profit stood at Rs 4,817 crore for the quarter, showing a 1 per cent increased year-on-year and a...

For 3QFY2018, on sales front Infosys posted 1.0% sequential growth in USD revenues to US$2,755mn in line with expectations. In Constant Currency terms (CC), the company posted a 0.8% qoq growth. Volume growth during the quarter was 1.6% qoq. EBIT margin came in at 24.3% v/s. 24.2% expected, mainly driven by improved utilization levels (wh..

ICICI Securities Ltd | Retail Equity Research US$ revenues grew 1% QoQ to $2,755 million, largely in line with our 1.2% growth and $2,761.4 million estimate. Constant currency revenues grew 0.8% QoQ vs. our estimate of 1.3% QoQ...

Infosys's (INFO) Q3FY18 revenue growth of 1% QoQ in US$ was in-line with our forecast. Also, EBIT margin of 24.3%, +10bps QoQ, and recurring EPS of Rs16.2, flattish QoQ/YoY, met our forecast. As expected, INFO has maintained its FY18 revenue growth guidance of 5.5%-6.5%. It expects revenue growth to improve in FY19, in-line with our forecast. INFO's new...

Maintain NEUTRAL with TP Rs 1,075, 14x FY20E (Dec-19E earlier). Infosys (INFY) replicated TCS 3Q revenue growth (+1% QoQ USD rev) and margin performance (+10bps QoQ), however commentary on BFSI and Retail & CPG verticals were divergent. INFYs revenue stood at USD 2,755mn, 0.8% QoQ CC supplemented by 1.6% volume growth and -90bps realisation decline. EBIT% came at 24.3%, +10bps QoQ (EBIT% 90bps below TCS), was supplemented by utilisation increase (highest-ever level), lower onsite-mix and other efficiencies (lower sub-contracting cost). Revenue from new products/services grew 6.4% QoQ (deceleration from 14.3% in 2Q) and digital stood at 25% of revenue.

Guidance has been retained both on revenue growth as well as profitability front. Management remains optimistic about outlook for CY18. Digital offerings are driving growth in structurally challenged BFSI/Retail verticals. for further gains in OPM is limited, owing to lack of headroom for improvement in levers such as utilization (now at 85%, net hiring soft YTD), delivery mix (demand to be more onsite centric) and SG&A; efficiency (expense flat in 9MFY18). We expect revenue/earnings growth CAGR of 6%/5% over FY18-20E and expect the stock to underperform given its soft growth metrics (9MFY18 TCV down 19%) and likely risk of...

Infosys (INFO) reported a modest 0.8% QoQ constant currency (CC) revenue growth in 3QFY18 with stable operative metrics. Management commentary on the outlook was optimistic even though the -0.6%-3.1% band for the implied 4QFY18 USD revenue growth guidance, widest in at-least the last 3 years, suggest a caution from any lag impact of the August 2017 events, in our view. Like TCS, INFO has done well on cost containment and while the common levers appear peaking, we expect margins to remain stable. The Our FY18/FY19 EPS estimates are broadly unchanged; the impact of lower other income (due to the recent buyback) has been largely offset by the reduced share-count + a lower effective...