October 17, 2016 / 17:30 IST
Arihant Capital's research report on Infosys
Infosys has delivered steady set of numbers with a top line growth of 3.5% qoq at $2,587mn. Rupee revenue increased 3.1% qoq to Rs 17,310cr. Operating profit has increased by 6.5% on qoq at Rs 4,309cr and Net Profit has increased by 4.9% on at Rs 3,606cr.
We believe Infosys will improve its performance with consistent client wins and we are cautious about global scenario. Company is trying to bring the best of human potential for software platform to drive the digital transformation. In Q2, Infosys strengthened relationships with key clients, including renewing existing large scale contracts, opening new accounts and signing four large deals.
We have assigned a PE of 15x to its FY18E earnings and have arrived at fair value of Rs 1,140 per share. At CMP Rs 1,035 stock trades at 13.7(x) its FY18E earnings. We have HOLD rating on the stock.
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