KR Choksey's research report on Infosys
Dollar Revenue was up 6.3% QoQ and in CC term grew by 21.5% YoY to USD 4,250mn (KRChoksey est. USD 4,136mn). Rupee revenue grew by 7.7% QoQ to INR 318,670Mn (KRChoksey est. INR 310,343Mn). Reported operating margin witnessed a meagre de-growth, down by 7bps to 23.5% QoQ. Infosys has raised FY22 revenue growth guidance by 250-300bps to 19.5-20% (earlier 16.5- 17.5%), implying 0.5-2% QoQ growth in Q4. Infosys’ strong broad-based revenue growth in a seasonally soft quarter clearly reflects the confidence clients have in the company’s capabilities, leading to consistent market share gains and company’s operating margin guidance remains the same at 22%-24%.
Factoring strong performance, confident commentary and upgrade in guidance, we are assigning a P/E multiple of 28.5x to the FY24 estimated EPS of INR 73.6 to arrive at a target price of INR 2,094 per share, an upside of 10.4% over the CMP. We change our rating to “ACCUMULATE” from “BUY” rating to the stock.
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At 15:25 hrs Infosys was quoting at Rs 1,926.70, up Rs 29.70, or 1.57 percent.
It has touched an intraday high of Rs 1,932.95 and an intraday low of Rs 1,879.00.
It was trading with volumes of 412,416 shares, compared to its thirty day average of 254,464 shares, an increase of 62.07 percent.
In the previous trading session, the share closed up 1.03 percent or Rs 19.40 at Rs 1,897.00.
The share touched its 52-week high Rs 1,914.00 and 52-week low Rs 1,230.00 on 03 January, 2022 and 24 February, 2021, respectively.
Currently, it is trading 0.66 percent below its 52-week high and 56.64 percent above its 52-week low.
Market capitalisation stands at Rs 810,296.41 crore.
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