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
Motilal Oswal expects the firm will report profit of Rs 4,150 crore, while Emkay Global pegs this figure at Rs 4,101 crore
Net Sales are expected to increase by 6.8 percent Q-o-Q (up 16.3 percent Y-o-Y) to Rs. 20,435.5 crore, according to Prabhudas Lilladher.
Net Sales are expected to increase by 6.7 percent Q-o-Q (up 16.1 percent Y-o-Y) to Rs. 20,400.8 crore, according to Motilal Oswal.
HSBC has a Buy call on Infosys with increased target price at Rs 880 from Rs 830 per share earlier.
Acceleration of the overall industry’s constant currency revenue growth in Q1FY2019 validates our earlier conviction on better revenue growth for the industry in FY2019E compared to FY2018 with TCS, Infosys, HCL Tech and Tech Mahindra being the preferred picks.
Stability in senior leadership, well chalked out execution strategy, better demand environment, generous payout and opportunities from a weaker rupee-dollar protects downside for the stock
Majority of brokerage houses remained positive on the stock, expecting 9-19 percent return over a period of one year on hopes of better margins going ahead.
Analysts said the result was largely a non-event.
In the previous quarter, Infosys reported a 28 percent sequential fall in net profit to Rs 3,690 crore, in line with analysts' expectations.
Net Sales are expected to increase by 6.4 percent Q-o-Q (up 12.6 percent Y-o-Y) to Rs. 19,233.8 crore, according to Edelweiss.
Net Sales are expected to increase by 5.1 percent Q-o-Q (up 11.2 percent Y-o-Y) to Rs. 18,996 crore, according to HDFC Securities.
Accenture’s robust Q318 results along-with persisting double digit growth in outsourcing revenues further bolsters confidence, the report further added.
Global and domestic brokerages remain mixed about the results as some of them have been surprised on lowering of margin guidance. Brokerages such as Jefferies have hiked their target to Rs 1,340 per share from Rs 1,000 per share earlier, an upside of 34 percent.
Brokerages such as Jefferies have hiked their target to Rs 1,340 per share from Rs 1,000 per share earlier, an upside of 34 percent, citing favourable risk reward. However, Citi has maintained its neutral stance on the stock, reducing its target price to Rs 1,195 per share.
The street will closely watch the commentary of new CEO Salil Parekh on new strategy, deal momentum, capital allocation policy, progress on onsite hiring and sectoral growth.
Net Sales are expected to increase by 2 percent Q-o-Q (up 6 percent Y-o-Y) to Rs. 18147.6 crore, according to Edelweiss.
Net Sales are expected to increase by 1.9 percent Q-o-Q (up 5.9 percent Y-o-Y) to Rs. 18,131.8 crore, according to Motilal Oswal.