Arihant Capital recommended accumulate rating on Infosys with a target price of Rs 800 in its research report dated January 12, 2019.
Arihant Capital's research report on Infosys
Revenues were Rs 21,400 crore for the quarter ended December 31, 2018, YoY growth of 20%; QoQ growth of 4%. Revenues grew sequentially by 3.8% in INR terms and 2.7% in constant currency terms. Digital revenues at $942 million (31.5% of total revenues), YoY growth of 33.1% and sequential growth of 5% in cc terms. EBIT margins stood at 20.5% vs 23.3% Qoq, this includes one off. Net profit was Rs 3,610 crore for the quarter ended December 31, 2018, YoY de growth of 30%; QoQ de growth of 10%.
Currently the stock is trading at a PE of 17x to its estimated FY20 EPS. We valued Infosys at PE of 20x of our estimated FY20 EPS of Rs 40 and arrive at a target price of Rs 800 with ‘Accumulate’ rating on the stock.
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