Infosys Ltd. share price target

Infosys is India's second-largest provider of consulting and IT services to clients across the globe.

Infosys Limited provides IT consulting and software services, including ebusiness, program management and supply chain solutions. The Group's services include application development, product co-development, and system implementation and system engineering. Infosys targets businesses...

We recommend a BUY rating on the stock and assign a 29x P/E multiple to its FY24E earnings of Rs 71/share to arrive at a TP of Rs 2,060/share, implying an upside of 18% from the CMP.

Quarter ended March 2022 compared with Quarter ended December 2021. Net sales (including other operating income) of Infosys has increased 1.28% to Rs 32276 crore. Operating profit margin has declined from 26.31% to 24.31%, leading to 6.41% decline in operating profit to Rs 7,846.00 crore. Employee cost increased from 51.32% to 51.61%. Other expenses rose from 22.37% to 24.08%. Selling and administration expenses rose from...

What should investors do? Infy's share price has grown by ~4.3x over the past five years (from ~| 402 in April 2017 to ~| 1,748 levels in April 2022). We revise our rating on the stock from BUY to HOLD Target Price and Valuation: We value Infosys at | 2,000 i.e. 28x P/E on FY24E EPS...

of 12-14%) despite low TTM TCV of $9.5 bn (vs $14.1 bn last year) led by largest ever large deal pipeline, strong client metrics and net new wins (40% in FY22) indicate Infy's ability to capitalize strong demand environment. We have already baked in 13.8% YoY USD growth for FY23, however negative surprise in margins can be a drag on FY23 EPS. Infy has already reported EBIT margin guidance of 21-23% for FY23 factors in headwinds from supply deeper digital capabilities and potential drop in utilization levels. We assign DCF based TP of INR 1899 (earlier: 2204) with implied target...

Q4 revenue growth muted at 0.7% QoQ USD, below our (4.1%) and street estimates. TCV robust at US$ 2.3bn

INFO reported a weak growth of 1.2% QoQ CC, below our estimate of 2.8%, on account of seasonality, the impact from the COVID-19 pandemic, and client provisions. Large deal TCV of USD2.3b was a tad soft (net new at 48%). However, the management indicated good traction in its large deal pipeline and reiterated that the demand remains strong. EBIT margin dipped 190bp QoQ to 21.6%, below our estimate of 23%, due to lesser days, lower utilization, and higher visa costs. The management guided at a margin of 21-23% for FY23 (100bp cut from its earlier guidance in FY22)....