Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!

Buy Infosys; target of Rs 1436: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Infosys has recommended buy rating on the stock with a target price of Rs 1436 in its research report dated October 15, 2020.

October 15, 2020 / 03:16 PM IST

Prabhudas Lilladher's research report on Infosys

Infy Q1FY21 results were beat in all parameters- Strong revenue beat & Margin performance, EPS beat & strong deal wins. Infy far surpassed growth expectations reporting 4% QoQ CC growth in revenues as compared to Ple 3.4%/Cons 2.6% QoQ CC. This translates to USD3312mn revenues up 6.1% QoQ (Ple:4%, Cons: 4.1% QoQ in reported terms) beat of 1.2% on our estimates. H1 revenues grew by 1.9% in CC. Growth beat was significantly driven by BFSI (40% of incremental growth), Retail (~25% of incremental growth) and Hitech (~16% of incremental growth). Infy posted a strong margin expansion of ~270bps QoQ to 25.3% (Ple: 23%, Cons:22.9%). We were impressed by the 100 bps contribution to margins from the increase in realization in pandemic times, this reflects pricing power. Infy has added 5 clients in US$100mn bucket, remarkable. Infosys’ new deal wins hit a new high of US$2.7 bn. Net new deals at US$2.7 bn was 2.2X of the previous high achieved in Q2FY19. Even adjusting for US$1.5 bn Vanguard deal, value of net new deals was remarkably strong at US$1.2 bn.


We value Infy at 27x to arrive at a changed target price of INR 1436 (earlier: INR1259) on Sep-22 EPS of Rs. 53.2. Infy is currently trading at 22.3X/20.4X FY22/23 earnings of INR 51/55.6 on FY22/23E respectively. Reiterate BUY.

For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. 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: Oct 15, 2020 11:31 am
ISO 27001 - BSI Assurance Mark