Sharekhan's research report on Infosys
Revenue fell 2.2% q-o-q to $4,564 million, in constant currency (CC) terms, missing our estimates of $4,646 million driven by sequential weakness across financial services, retail, life sciences and manufacturing. EBIT margins fell ~40 bps q-o-q to 20.1%, missing our expectations of 20.5%. Large deal win TCVs were strong at $4.5 billion, up ~37% q-o-q /115% y-o-y from 30 deals, including 2 mega deals with 44% being net new. Company expects FY25 revenue growth to be 1- 3% in constant currency terms which was lower than our and street expectations. OPM guidance for FY25 is 20- 22%. We believe growth acceleration in key BFSI vertical , ramp-up of large deal wins in FY25 and the mitigating macro headwinds in H2FY25 would aid the company in delivering better than conservative expectations in FY25.
Outlook
Hence, we maintain Buy with revised Price Target (PT) of Rs. 1700. At CMP, the stock trades at 22.8/19.3x its FY25/26E EPS.
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