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.
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!
