Buy Infosys; target of Rs 1838: YES Securities

YES Securities' research report on Infosys

Infosys (INFO) reported broadly inline performance for the quarter. The revenue growth was above estimates; while EBIT margin was inline with expectation. It reported increase in revenue by 2.3% QoQ in cc terms. Revenue grew by 2.2% QoQ in USD terms (up 2.8% QoQ in INR terms). EBIT margin improved by 42 bps QoQ to 21.2% on lower SG&A cost in the quarter. Reported Large deal wins of $7.7bn vs $2.3bn in Q1FY24.

Outlook

We maintain our BUY rating on the stock with revised target price of Rs 1,838/share at 25.5x on FY25E EPS. The stock trades at PER of 24.4x/20.3x on FY24E/FY25E EPS.