Buy Infosys; target of Rs 1692: Geojit

Geojit's research report on Infosys

Infosys Limited provides IT consulting and software services, including ebusiness, program management and supply-chain solutions. It also offers application development, product co-development, system implementation and system engineering services. Revenue surged 20.2% YoY to Rs. 38,318cr in Q3FY23, led by broadbased growth across all industries and regions. PAT increased 13.4% YoY to Rs. 6,586cr. EBITDA margin remained stable QoQ at 24.4%, driven by healthy revenue growth and cost-optimisation benefits. The company reported exceptionally strong earnings, driven by growth in its digital offerings and core services, despite a seasonally weak quarter. A strong portfolio, a diverse service line and an aggressive approach would help the company sustain its performance in the future, in our view.

Outlook

Hence, we upgrade our rating to BUY on the stock, with a revised target price of Rs. 1,692 based on 22x FY25E adjusted EPS.