Accumulate Infosys; target of Rs 1772: KR Choksey

KR Choksey recommended accumulate rating on Infosys with a target price of Rs 1772 in its research report dated January 17, 2024.

Broker Research

January 17, 2024 / 22:28 IST

Accumulate

26 Aug, 2025 12:21

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KR Choksey's research report on Infosys

Infosys Ltd (INFY) generated revenue of INR 3,88,210 Mn in Q3FY24, registering a growth of 1.3% on a YoY basis from INR 3,83,180 Mn and a decline of 0.4% on a QoQ basis from INR 3,89,940 Mn. In CC terms, the Company saw a 1% decline on YoY and QoQ basis. The EBIT for the quarter came in at INR 79,610 Mn, a decline of 3.4% on a YoY basis from INR 82,420 Mn and 3.8% from INR 82,740 Mn on a sequential basis. The operating margins for Q3FY24 was 20.5%, a contraction of 100 bps YoY and 71 bps QoQ. Net profit for the quarter stood at INR 61,130 Mn, a reduction of 7.2% YoY from INR 65,860 Mn and 1.6% QoQ from INR 62,150 Mn. The PAT margin stood at 15.7%, a decline of 144 bps YoY and 19 bps QoQ. Utilization improved to 82.7% due to decline in the number of employees by 1.9% to 3,22,000.

Outlook

We believe concerns over weak prospects for IT companies such as INFY have abated post the recent Q3FY24 results. Accordingly, we raise our target price to INR 1,772, applying a P/E multiple of 23.7x to our FY26E EPS, which implies a 9.3% upside over the CMP. Accordingly, we reiterate our ACCUMULATE rating on the stock.

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