Moneycontrol PRO
Upcoming Event:Super25 3.0- India’s Largest Online Stock Traders Conference brought to you by Moneycontrol Pro & Espresso

Accumulate Infosys; target of Rs 804: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Infosys with a target price of Rs 804 in its research report dated March 29, 2019.

March 29, 2019 / 04:23 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on Infosys


Infosys has announced strategic partnership with ABN AMRO by acquiring 75% shareholding in Stater NV (a subsidiary of ABN AMRO) which provides pure-play, end-to-end mortgage administration services in Netherlands, Belgium and Germany. Infosys will pay EUR 127.5 mn (~USD 143 mn) for the 75% stake. (Expected closure: Q1FY20). Acquisition of Stater is in sync with Infosys strategy of strengthening its position in Continental Europe and we expect revenue for the business to be ~USD 200 mn with high single digit margin, implying valuation of ~1x EV/Sales. It will add ~1.6% revenue growth & impact on EBIT margins will be 25bps (assuming EBIT margins of 7%) & will be marginally EPS-dilutive on FY20E. The inorganic strategy of Infosys will help them to accelerate revenue momentum.


Outlook


We expect 9.3% USD revenue & 10.3% EPS CAGR over FY19E-21E. We have Accumulate rating on Infosys & value at 18.5x Mar-21 earnings to arrive at a target price of Rs.804.


For all recommendations report, click here

Close

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Broker Research
first published: Mar 29, 2019 04:23 pm
Sections
ISO 27001 - BSI Assurance Mark