Buy Infosys: target of Rs 1650: Sharekhan

Sharekhan's research report on Infosys

Q3FY21 was another stellar quarter, with revenue and margin significantly beating estimates, along with strong deal TCVs, account expansion, and robust FCF generation. Infosys raised revenue growth guidance to 4.5-5% in CC terms from 2-3% earlier and also revised OPM guidance upward to 24-24.5% from 23-24% for FY2021. Infosys is well-placed to capture opportunities from clients’ transformation journeys and cost take-out initiatives given strong digital capabilities and execution track record.

Outlook

We maintain a Buy on Infosys with a revised price target of Rs. 1,650 as we expect it to clock industry-leading growth in the next couple of years.