Buy Infosys; target of Rs 1000: ICICI Direct

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

ICICI Direct's research report on Infosys

Infosys reported a healthy set of Q1FY21 numbers both on the revenue and margin front. Further, the Q1FY21 performance was better than TCS’ Q1FY21 numbers. The company reported a 2.4% QoQ dip in dollar revenues (above our estimate of decline of 5.5% QoQ) vs. TCS that reported 7.1% QoQ dip in dollar revenues. In terms of margins, EBIT margins improved 149 bps to 22.7% (above our estimate of 20.9%) vs. TCS that reported 149 bps dip in margins. The company’s large deal signings have increased 5.5% QoQ to US$1.74 billion. Digital revenues have increased 3.6% QoQ, 24.1% YoY to US$1389 million and now contributes 44.5% of total revenues. In terms of guidance, the company expects 0-2% growth in revenues in constant currency terms and operating margins in the range of 21-23%.

Outlook

We remain positive on the stock and maintain our BUY rating on the stock with a target price of Rs 1000/share.

For all recommendations report, click here

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.

Read More