Hold Infosys, target of Rs 1880: Sharekhan

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Sharekhan has maintained its hold rating on Infosys Technologies with a revised price target of Rs 1,880 in its report dated July 10, 2009.

"For Q1FY2010, Infosys Technologies (Infosys)' consolidated revenues declined by 2.9% sequentially to Rs 5,472 crore. In dollar terms, the revenues were almost flat at USD 1,122 million and were significantly higher than its guidance (USD 1,060--USD 1,080 million). This was due to 1% improvement in the reported realisation, largely on account of favorable cross currency movements (in constant currency realisation dipped 0.9% sequentially). The volume dropped by 1.1% sequentially in line with our expectation. The operating profit margin (OPM) improved by 58 basis points sequentially to 34.1%, which is significantly above expectation. We maintain our Hold recommendation on the stock with a revised price target of Rs 1,880. At the current market price, the stock is trading at 17.4x FY2010 earnings estimate and 16.5x FY2011 earnings estimate," says Sharekhan's report.

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