Infosys shares: Brokerages raise target price post Q3 results Infosys

Infosys shares:

Infosys shares surged over 1% to ₹1,898 apiece on the BSE in Thursday’s opening session after the IT giant raised its revenue forecast as it expects 19.5%-20% revenue growth for the financial year to end-March 2022, compared with a previous 16.5%-17.5% predicted earlier, while retaining its operating margin guidance.

World Bank projects India’s GDP growth at 8.3% for FY22, 8.7% for FY23

India’s second largest IT company reported a 12% rise consolidated net profit of ₹5,809 crore for Q3FY22 from ₹5,197 in the same quarter last year, while its revenue rose 23% to ₹31,867 crore.

“Infosys’ Q3 results beat estimates across the board led by a strong revenue growth. Amidst high attrition, Infosys has managed its margins well led by pyramid management. We raise our FY22-24 estimates by 2-4% and expect Infosys to deliver 15% EPS CAGR over FY22-24. Infosys remains our top pick,” said Jefferies in a note.

Infosys shares: It has maintained its Buy rating with revised target price of ₹2,270 ((from ₹2,200). “While Infosys continues to outperform on growth, 3Q results inspire greater confidence on its ability to manage margins.”

The company’s margin stood at 23.5% in Q3FY22, up from 23.6% in the previous quarter. Infosys said growth remained broad-based during the quarter and deal momentum robust, with digital transformation rapidly scaling across verticals and regions.

Emkay has also maintain Buy rating with a revised target price of ₹2,160 (earlier ₹2,100), considering strong earnings momentum and a robust demand environment. Infosys remains confident of sustaining growth momentum on the back of broad-based demand, solid deal intake and a healthy deal pipeline, as per the brokerage.

“The intake of large deals was healthy at $2.5 billion in Q3FY22 (43% new), with 25 large deals signed during the quarter. The deal pipeline remains healthy with a good mix of new and renewal deals, offering good revenue visibility,” the note stated.

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