Hold Infosys; target of Rs 1184: KR Choksey

KR Choksey's research report on Infosys

Revenue in dollar terms reported at $2,805 Mn (+1.8%) qoq that was above our estimates of $2,783 Mn. The revenue was supported by the currency tailwind of ~100 bps coupled with improvement in business verticals, especially Insurance and Energy & Utility. The operating margin for the quarter reported at 24.7% (+40 bps) qoq owing to improvement in utilization and price realization.

Outlook
We have assigned a “HOLD” rating to the stock and we assign a multiple of 15.5x to its FY20E EPS of INR. 76.4 to arrive at a target price of INR 1,184.

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