Jul 15, 2013 06:08 PM IST | Source:

Buy Infosys; target Rs 3145: Firstcall Research

Brokerage house Firstcall Research is bullish on Infosys and has recommended buy rating on the stock with a target price of Rs 3145 in its July 12, 2013 research report.

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Firstcall's research report on Infosys

"Infosys's net profit increased to Rs 23740 million against Rs 22890 million in the corresponding quarter ending of previous year, an increase of 3.71 percent. Revenue for the quarter rose 17.17 percent to Rs 112670 million from Rs 96160 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.41.50 a share during the quarter, registering 3.71 percent decrease over previous year period. EBITDA is Rs.118440.00 millions as against Rs.100920.00 millions in the corresponding period of the previous year."

Outlook and Conclusion: "At the current market price of Rs.2808.00, the stock P/E ratio is at 14.92 x FY14E and 13.86 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs.178.87 and Rs.192.45 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 15 percent and 10 percent over 2012 to 2015E respectively. On the basis of EV/EBITDA, the stock trades at 11.04 x for FY14E and 10.15 x for FY15E. Price to Book Value of the stock is expected to be at 3.05 x and 2.50 x respectively for FY14E and FY15E. We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend 'BUY' in this particular scrip with a target price of Rs 3145 for Medium to Long term investment," says Firstcall Research report.

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