Buy Infosys; target of Rs 1300: Sharekhan

Sharekhan's research repor on Infosys

We expect strong revenue growth in Q2FY2021, led by demand pick-up in both BFSI and retail verticals and ramp-up of large deals, while margin is expected to remain stable q-o-q. COVID-19 crisis has become a catalyst for Indian IT sector, with acceleration of demand for cloud by clients; Infosys is well-placed to participate in the transformation journey of clients given its full-service model.

Outlook

We maintain our Buy rating on Infosys with a revised price target to Rs. 1,300 by raising target multiple on expectation of strong results in Q2FY2021E.