Credit Suisse has an 'underperform' call on Infosys with a target price of Rs 690 due to high valuations and an expectation of a weaker second half of FY20.
The company has declared an interim dividend of Rs 8 per equity share. The record date for dividend is October 23 and payment date is October 30, 2019.
Net Sales are expected to increase by 3.9 percent Q-o-Q (up 10 percent Y-o-Y) to Rs. 22,660.4 crore, according to Prabhudas Lilladher.
Net Sales are expected to increase by 3.5 percent Q-o-Q (up 9.5 percent Y-o-Y) to Rs. 22,568.8 crore, according to Motilal Oswal.
Nifty companies will deliver revenue growth of 5.2 percent and net profit growth of 8.2 percent for Q1FY20
Revenue and margin guidance for FY20, and cues from manufacturing and life sciences vertical across US/Europe will also be closely watched.
Net Sales are expected to increase by 0.9 percent Q-o-Q (up 13.6 percent Y-o-Y) to Rs. 21,730 crore, according to Prabhudas Lilladher.
Net Sales are expected to increase by 2.8 percent Q-o-Q (up 15.7 percent Y-o-Y) to Rs. 22,138.5 crore, according to Kotak.
The return on Equity for Infosys is expected to increase from 20.7 percent in FY17 to 24.3 percent in FY20 while for TCS, the RoE is expected to increase marginally from 33.5 percent in FY17 to 34.8 percent in FY20.
Brokerages expect Q4 to be better than third quarter due to ramp-up in large deals. According to them, constant currency revenue growth could be in the range of 1.7-2.1 percent for the quarter
But non-auto consumer discretionary companies like Titan and Zee Entertainment are expected to report relatively stronger growth, Deutsche said.
The global investment firm said Infosys may see another $2 billion worth of deal booking this quarter, making this its strongest close in six years
Net Sales are expected to increase by 0.2 percent Q-o-Q (up 18.6 percent Y-o-Y) to Rs. 21,447.5 crore, according to Prabhudas Lilladher.
Net Sales are expected to increase by 0.6 percent Q-o-Q (up 20.9 percent Y-o-Y) to Rs. 21,519.9 crore, according to Kotak.
CLSA said strong growth in US is positive for most firms, but more for Infosys & Cognizant while strong growth in CMT is positive for Tech Mahindra, Wipro & HCL Technologies
Kotak advised adding HCL Technologies, L&T Infotech, Mindtree and Tech Mahindra which could return 8-12 percent
With the hefty payout limiting downside, we recommend buying Infosys
The IT major reported 12 percent quarter on quarter (QoQ) decline in December quarter net profit to Rs 3,609 from Rs 4,110 crore last quarter
Net Sales are expected to increase by 3.8 percent Q-o-Q (up 20.3 percent Y-o-Y) to Rs. 21,400.7 crore, according to ICICI Direct.
Net Sales are expected to increase by 3.7 percent Q-o-Q (up 20.1 percent Y-o-Y) to Rs. 21,376.3 crore, according to Prabhudas Lilladher.
EBIT margin is expected to contract by around 20-30 bps sequentially despite rupee depreciation, brokerages said
FY19 guidance by Infosys and HCL Technologies, and next quarter guidance by Wipro will also be the key metrics to watch out for
CIMB retained its overweight stance on Infosys & Tech Mahindra as both are its preferred large cap picks.
Infosys posted a decent Q2 FY19 performance that saw steady execution, stable margin and strong deal wins. However, no change in FY19 revenue and margin guidance was a tad disappointing