Buy Infosys; target of Rs 1600: ICICI Direct

ICICI Direct's research report on Infosys

Infosys Ltd (Infy) is one of the leading IT players catering to BFSI, retail, communication, manufacturing & hi tech verticals. The company generates >62% of revenues from digital technologies • Dividend payout (>80%), margins (>20%) and RoCE (>31%) key positives: : Infosys reported weak revenue numbers in Q4FY23. Revenue declined 3.2% QoQ and grew 8.8% YoY in CC terms • EBIT margins declined 50 bps QoQ to 21% • Signed 17 large deals with TCV of US$2.1 bn, down 36.4% QoQ.

Outlook

We maintain BUY rating on the stock. We value Infosys at Rs 1,600 i.e., 22x P/E on FY25E EPS.