Buy Infosys; target of Rs 1855: Religare Retail Research

Buy

Religare Retail Research report on Infosys

Infosys revenue in rupee and dollar declined by 2.3% each QoQ which came in below our estimate of 1.8% & 0.5% growth QoQ. The revenue impacted largely due to cancellation of few projects, delay in ramping of deals and challenging environment in the US. In constant currency it de-grew by 3.2% QoQ while seeing a growth of 8.8% YoY in Q4FY23. For FY23, revenue growth remains a miss as it grew by 15.4% YoY as compared to management expectation of 16-16.5%. Amongst offerings, digital revenue which contributes 62.9% grew in double digit with 15% CC growth YoY while its core segment growth was flat.

Outlook

We have maintained a Buy rating on Infosys but have revised our target price downwards to Rs 1,855, assigning a PE multiple of 23x on FY25 EPS.

For all recommendations report, 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.

Infosys - 14 -04 - 2023 - reg