Buy Infosys; target of Rs 1500: Axis Securities

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Axis Securities's research report on InfosysInfosys’ Q4 had multiple positives – better EBIT margin (by ~50 bps), impressive deal wins, consistent improvement in large client mining, and further decline in attrition. Progress on new initiatives (innovation/ automation) remains encouraging.This offsets marginal revenue miss in Q4 and headwind in Insurance vertical (5.4% share). Note: Q4FY16 revenue growth QoQ was better vs. Q4 of past 5years. We expect FY17E/FY18E USD revenue growth of ~14% each with EPS at Rs 69/ Rs 79. Marginal change in our FY17E/FY18E EPS due to higher tax rate assumption at 29-30%. Maintain BUY with TP of Rs 1,500 (19x FY18E EPS) implying 28% upside from CMP of Rs 1,172).The stock trades at 17x FY17E / 15x FY18E earnings. 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.

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