Buy Infosys; target of Rs 1725: YES Securities

YES Securities' research report on Infosys

Infosys (INFO) reported strong financial performance for the quarter. While, the revenue growth was inline, EBIT margin came in above estimates. It reported constant currency growth of 4.0% QoQ, led by Manufacturing( up 45% YoY in cc terms) and Energy and Utilities( up 24.3% YoY in cc terms). The INR reported growth of 6% QoQ was supported by depreciation of INR by 3.4% QoQ vs USD. There was sequential improvement in EBIT margin(up 149 bps QoQ) led by improving pyramid, better realization and other efficiency measures.

Outlook

We maintain our BUY rating on the stock with revised target price of Rs 1,725/share at 24.0x on FY24E EPS.

More Info

At 11:37 hrs Infosys was quoting at Rs 1,489.30, up Rs 69.55, or 4.90 percent.

It has touched an intraday high of Rs 1,493.45 and an intraday low of Rs 1,468.00.

It was trading with volumes of 373,542 shares, compared to its thirty day average of 578,346 shares, a decrease of -35.41 percent.

In the previous trading session, the share closed down 0.64 percent or Rs 9.10 at Rs 1,419.75.

The share touched its 52-week high Rs 1,953.70 and 52-week low Rs 1,355.50 on 17 January, 2022 and 26 September, 2022, respectively.

Currently, it is trading 23.77 percent below its 52-week high and 9.87 percent above its 52-week low.

Market capitalisation stands at Rs 626,671.76 crore.

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Infosys - 141022 - yes