Sharekhan's research report on Infosys
Reported revenue stood at $4,730 million, down 3.5% q-o-q in constant currency (CC) terms, missing our estimate of $4,842 million. EBIT margin fell ~30 bps q-o-q to 21%, but beat our estimate of 20.6%. The company closed 24 large deals with TCV of $2.6 billion, up 5.7% q-o-q/ down 41% y-o-y of which 63% were net new. The company provided revenue growth guidance of 0-3% in CC for FY26 with OPM guidance at 20-22%. We have cut FY26/27E EPS by ~1.7%/3% respectively to factor increased uncertainty owing to macro headwinds.
Outlook
We maintain Buy with a revised price target (PT) of Rs. 1,630 (valued at 22x FY27E EPS). At the CMP, the stock trades at 22/21x/19.2x its FY25/26/27E EPS.
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