Buy Infosys; target of Rs 1690: Sharekhan

Sharekhan is bullish on Infosys has recommended buy rating on the stock with a target price of Rs 1690 in its research report dated September 20, 2023.

Broker Research

September 25, 2023 / 11:50 IST

Buy

26 Aug, 2025 12:21

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Sharekhan's research report on Infosys

Deal momentum continues to stay robust with Infosys reporting few large/mega deals ranging from $1.5-2bn in July-Sep23. Infosys will largely benefit from the likely recovery in the highly impacted verticals - BFSI, Communication (MNC telecom company deal win of $1.6 bn) and Hi-tech in the next few quarters aided by deal wins and ramp-up of deal pipeline. As global uncertainties subside, gradual acceleration in discretionary spending is anticipated, further driving growth for IT companies. Despite the uncertain macro environment, the strong competitive strengths are expected to provide resilience to revenue growth profile through large/mega deals wins and robust deal pipeline while margin expansion is expected to be aided by improvement in operational levers.

Outlook

Recent mega deal wins improve growth visibility and thus, we upgrade Infosys to Buy with a revised PT of Rs.1,690 (reflects slightly better multiple and rollover of PE multiple to Sept 25 EPS estimate). We believe Infosys remains well placed to win large deals, defend market share given its diversified presence across geographies, well-spread revenue streams across verticals and with sharp focus on strategic clients. At the CMP, the stock trades at 21.6x/19.1x its FY25/26E EPS.

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