Prabhudas Lilladher's reserach report on InfosysInfosys’ Q2FY16 performance was comprehensively ahead of expectation with solid revenue and margin beat. Growth has been strong across verticals and geographies. Infosys’ initiatives in automation/innovation etc. are showing signs of early success. Healthy deal win (US$ 980mn), new client additions and improvement in client matrix indicate improvement in overall performance. However, despite a solid Q2, company has maintained its FY16 CC guidance (10‐12% YoY) and lowered USD guidance (6.4‐8.4%). Company has attributed lower number of working days and furloughs for the cautious 2HFY16 outlook. Based on the underlying business momentum and past impact of seasonality, we believe that Infosys has been conservative in guidance and we expect company to beat FY16 revenue guidance. We view the weakness in stock price as a BUYing opportunity.Retain ‘BUY’, with TP of Rs1,440: We expect Infosys to return to industry growth by FY17.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Read More
