Buy Infosys; target of Rs 840: Sharekhan

Sharekhan's research report on Infosys

Revenue beats estimates, with constant currency (CC) revenue up by 2.7% q-o-q, led by strong growth across key verticals. EBIT margin declined on a q-o-q basis to 22.6%, owing to higher subcontractor costs along with additional investments in digital and localisation. Infosys has increased CC revenue growth guidance to 8.5-9% from 6-8%, indicating signs of good progress of its strategy; retained EBIT margin guidance.

Outlook

We maintain our Buy rating on Infosys with an unchanged price target of Rs. 840.