Buy Infosys; target of Rs 1290: Reliance Securities

Reliance Securities' research report on Infosys

Infosys delivered an in-line performance in 4QFY18, with revenue rising 1.8% QoQ (0.6% QoQ in CC terms) to US$2,805mn, almost exactly in-line with our estimate. Aided by currency, lower SG&A and offshore mix, EBIT margin rose by 46bps QoQ, while volume growth came in at 1.2% QoQ. The Management has guided for FY19E USD revenue growth at 7-9% (6-8% in CC terms), in-line with our and street expectations.

Outlook

Hence, we retain our BUY rating on the stock, with a revised TP of Rs1,290 (Rs1,240), as we slightly raise FY20E earnings on growth leverage, even as we cut FY19E EPS 4% on higher business related investments. For all recommendations report, click here

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