Buy Infosys; target of Rs 780: Sharekhan

Sharekhan's research report on Infosys

Whistleblowers have allegedly complained to the company’s board and the US SEC that Infosys has been indulging in unethical practices to boost revenue and profits. As these allegations have come from company’s own employees, it has created a lot of uncertainty among investors. As seen in the past, such issues tend to divert the management’s attention and impact near-term performance. Also, any possible senior-level exits as fallout of the issue would affect stock further.

Outlook

We maintain our Buy rating on Infosys with a revised price target (PT) of Rs. 780 as the recent issue is likely to remain an overhang for the near term.