Sharekhan's research report on Infosys
Beat our estimates across financial parameters; Large deal TCVs declined 16% q-o-q, but management indicated that the deal pipeline remains strong; net headcount addition, client additions, and utilisation remained strong. Management has increased FY2022 CC revenue growth guidance to 16.5-17.5% from 14-16% earlier, broadly in-line with our expectations. EBIT margin guidance was maintained at 22-24%, as expected. Infosys is well placed to deliver industry-leading organic growth among large peers in the medium term, given broad-based demand, strong deal pipeline, and market share gains. Net profit to report a 15% CAGR over FY22-FY24E.
Outlook
We maintain Buy on Infosys with a revised PT of Rs. 2,050, given strong earnings growth potential, a robust deal pipeline, and strong demand.
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