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Buy Infosys; target of Rs 1650: ICICI Direct

ICICI Direct is bullish on Infosys has recommended buy rating on the stock with a target price of Rs 1650 in its research report dated April 15, 2021.

April 15, 2021 / 08:17 PM IST

ICICI Direct's research report on Infosys


Infosys’ volume in the quarter increased 4.6% QoQ but revenue growth was lower by 2% QoQ in constant currency (CC) terms due to offshoring. The revenue growth was across verticals & geographies. Digital revenues increased 5.6% QoQ, 38.6% YoY and now accounts for 51.5% of overall revenues. In terms of deal pipeline, it increased 27.3% YoY to US$2.1 billion. Further, despite wage hike, margins were healthy. In terms of guidance, the company expects FY22E revenues to grow in the range of 12-14% with operating margin in the range of 22-24%. Robust revenue guidance points at strong demand environment.


Outlook


Hence, we maintain our BUY rating on the stock with a revised target price of Rs 1,650 (26x P/E on FY23E EPS) (earlier target price Rs 1,610).


For all recommendations report, click here


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first published: Apr 15, 2021 02:15 pm
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