Sharekhan's research report on Infosys
Infosys is among the best-positioned companies to benefit from strong demand backed by its strategic investments in scaling-up its digital capabilities, wining market share, and expanding presence in Europe. Though management cited Q3FY2022 growth will be impacted with usual seasonality, we believe strong demand environment and one-month incremental revenue from the Daimler deal will offset some of the seasonality impact. Margins are expected to remain under pressure in the near term due to supply-side issues, wage revision for senior employees, and weak seasonality, partially offset by strong growth in the digital business, operational efficiencies, and currency tailwinds.
Outlook
We maintain Buy on Infosys with an unchanged PT of Rs. 2,050, given strong earnings growth potential, solid execution, and strong demand.
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