Motilal Oswal's research report on Infosys
The recent news about the exit of two senior executives of Infosys, Mr. Narsimha Mannepalli and Mr. Vishal Salvi (both with responsibilities including delivery), may bring back investor concerns about leadership attrition increasing post the exit of copresidents, Ravi Kumar and Mohit Joshi over the last three quarters. More critically, investors need to be watchful of further exits, especially in delivery leadership (a known gap area at Cognizant), as our channel checks earlier this month indicated high demand for delivery-related roles in the tech industry. Though we see this as an addressable risk, any supply-demand gap in project management could potentially hurt project timelines in the short term. We remain positive on INFO as structural growth prospects remain intact.
Outlook
We expect INFO to be a key beneficiary of the acceleration in IT spending in the medium term. Retain BUY with a TP of INR1,520, valuing at 21x FY25E EPS.
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