Buy Infosys; target of Rs 1018: Geojit

Geojit's research report on Infosys

Revenue surged 8.5% YoY, aided by strong growth in Hi-Tech and Life Sciences verticals. EBIT went up 20.0% YoY, as EBIT margin improved 220 bps to 22.7%. Resultantly, PAT also rose 11.5% YoY. Company revised year-end guidance to 0-2% YoY growth in constant currency terms, with operating margin guidance of 21-23%. Backed by recent large wins coupled with strong order book, Infosys is expected to sail through the year despite near-term woes amidst pandemic.

Outlook

We remain positive on company's Long-term growth prospects and upgrade our rating to BUY with a revised TP of Rs. 1,018 based on 22x FY22E adj. EPS.

Infosys 21072020-geojit