Infosys Ltd. share price target

Maintain NEUTRAL with TP Rs 1,000 (14x Sep-19E EPS). Infosys reported in-line revenue performance (2.2% CC) and outperformed margins on operational efficiencies. Revenue guidance for FY18 was downgraded to 5.5-6.5% CC (6.5-8.5% earlier), implying CQGR of 0.4-1.7% over 3Q/4QFY18. Operational efficiency was the key positive for the quarter, supported by utilisation at an all-time high (84.7%), favourable onsite mix, FP-led growth and realisation improvement (0.7% QoQ CC). Revenue from new products and services grew 14.3% QoQ (49% of incremental growth), while legacy business grew 1.6% QoQ.

Infosys has delivered an in-line performance in 2QFY18, the first quarter post Dr. Vishal Sikka's exit. Its revenue grew by 2.9% QoQ (2.2% QoQ in CC terms) led by good growth in verticals such as Insurance (+6.2% QoQ), BFS (+2.5%), Transport & Logistics (+8.3%), Life Sciences (+7.4%) and Energy & Utilities (+8.8%). Despite wage hike, EBIT margin expanded by 10bps QoQ (vs. our estimate 73bps QoQ decline) led by all-time high employee utilisation, rise in pricing and operational efficiency, which is a positive sign. However, Infosys' cut in its FY18E guidance - with...

(implies 1% CQGR at the midpoint for 2H). We read this as a function of: [1] lower 2Q growth than that seen historically, even in subdued years and [2] conservatism that has characterized the founders' approach in the past....

Infosys is the secondlargest IT services company in India providing consulting and IT Services globally. As one of the fastest growing IT services company globally it is a leader in the offshore services space. Infosys provides business consulting, application development and maintenance and engineering services to 1,164 active clients spread across Banking, Financial Services, Insurance, Retail, Manufacturing, and Utilities verticals and 50 countries. The company has also its own proprietary core banking software Finacle used by some of the...

Infosys is a global leader in technology services and consulting. It enables clients in 45 countries to create and execute strategies for their digital transformation. From engineering to application development, knowledge management and business process management, the company helps its clients find the right problems to solve, and to solve them effectively. The team of 198,000+ innovators, across the globe, is differentiated by the imagination, knowledge and...

We believe that Mr Nadan Nilekani joining Infosys (INFO) board as non-executive Chairman on Thursday is a great move amid Dr. Vishal Sikka's stepping down as MD & CEO just a week earlier. We did not expect such a move to happen so fast. At the investor con-call, Mr Nilekani clearly mentioned that his top priority is to make INFO the enterprise of future and restore the company on the growth path with consensus of all stakeholders. We believe that the worst is over for INFO and upgrade it to ACCUMULATE from HOLD with new TP of Rs988 based on 14x FY19E (13x earlier) and factor the impact...

Infosys had featured as our top buy in the IT space due to (1) great leadership and their ability to scale the company towards next-gen services and (2) reasonable valuations. However, Dr. Vishal Sikka's resignation has clearly surprised us and has not gone down well with investors.

Downgrade to NEUTRAL with a TP of Rs 995, 14x FY19E EPS. Our multiple is reduced to reflect the twin perils of internal corporate battles and a challenging business environment that the company will now have to navigate. Fridays dramatic events starting with the resignation of Vishal Sikka, followed by the unseemly public spat between the Infosys board and its founders pose collateral risks for the firm at just the wrong time. After three grating years, Sikka had barely got Infosys looking sharper and smarter. In our view it is the Board which is saddled with eroded credibility, as it has defended Sikka against founders allegations but has been unable to retain him. We think the founders are not done and expect an extended battle for credibility.

ICICI Securities Ltd | Retail Equity Research Infosys' Vishal Sikka has resigned from his position as MD & CEO. He has been appointed the Executive Vice-Chairman. COO UB Pravin Rao has been appointed the interim-MD and CEO. We would be closely watching the company's revenues growth guidance of 6.5-8.5% (in constant currency terms) for FY18E in the midst of recent developments. We maintain our HOLD rating on the stock with a revised target price of | 975. We also advise investors not to accumulate fresh position in the stock...

Infosys's (INFO) MD & CEO, Dr Vishal Sikka, has decided to exit. We believe that this is negative for INFO at a time when it is gearing up to get back to industry-leading growth amid sector's transition to new technologies. In his e-mail to the board of directors, Dr Sikka mentioned that addressing to personal accusations took away significant part of his bandwidth. The board of directors also mentioned the same reason for Dr Sikka's exit in a press release. We hope that the new MD & CEO does not have to face the same. We cut our FY18/19 revenue forecast by 1.1%/3.6% and EPS forecast by 2.8%/8.8%....