Buy Infosys, target of Rs 2124: Angel

Angel Broking has maintained a buy rating on Infosys Technologies with a revised 12-month target price of Rs 2124 in its July 11, 2008 research report. "Infosys recorded an impressive 6.9% qoq and 28.7% yoy growth in Top-line during 1QFY2009. However, in Dollar terms, sequential growth in Top-line stood at a mere 1.1%. Going ahead, we expect Infosys to record a CAGR growth of 26.1% in Top-line over FY2008-10E, while Bottomline would grow at a CAGR of 20.5% over the same period. We expect EBITDA Margins to stay in a range, aided by Rupee depreciation in FY2009."

"We had earlier estimated Bottom-line to grow at a considerably slower CAGR of around 11.6% over FY2008-10E, which has been upgraded on account of the one-year extension of the tax benefits available to IT companies under the Software Technology Parks of India (STPI) scheme, as also the Rupee depreciation this fiscal. We have raised our average Rupee rate for FY2009 to 42 to a Dollar, as against Rs 39.50 earlier. At the CMP of Rs 1,676, the stock is trading at 14.2x FY2010E EPS. We maintain a Buy on the stock, with a revised 12-month Target Price of Rs 2,124 (Rs 2,064)," says Angel's research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

For further details click on attachment......