Infosys Ltd. share price target

Infosys’ (INFY) Q1FY24 result is likely to be weak and that is largely known to the street. We believe INFY’s FY24 revenue guidance of 4-7% YoY CC is healthy because CQGR of 2.3-2.9% implied by mid to high end of the guidance is higher than INFY’s pre-covid CQGR of 2.2%.

Given the company's medium-term challenges on demand and uncertain supply-side constraints, we expect Infosys to report moderate growth in FY24. We recommend investors SELL on the stock until uncertainties settle down.

Infosys has reported revenue of US$4,554mn, decline of 3.2% QoQ CC, much lower than our/consensus estimates of +0.1%/0.3% QoQ CC. This resulted in miss in FY23 revenue growth at 15.4% YoY CC vs guidance of 16-16.5%.

Q4 revenue declined 2.3% QoQ CC, weighed down by project cancellations