We value the stock at 28 times FY24E EPS, implying a target price of Rs 2,000," Motilal Oswal said.ĭon’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp. PARTNERED BY Edelweiss Aggressive Hybrid Fund. Based on our revised estimates, the stock is currently trading at 25 times FY24 EPS. Infosys intends to buy back over 5 crore shares, comprising approximately 1.19 of the paid-up capital of the company, from the open market at a maximum price of Rs 1,850 per share. PARTNERED BY Canara Robeco Emerging Equities - Direct Plan (G) 3 Year Return: 28.79. ![]() We expect it to be a key beneficiary of an acceleration in IT spending. Infosys has decided to slash its average variable payout to 60 at an organizational level for Q4FY23, highlighting the significant challenges faced by the company. Infosys share buyback offer worth Rs 9,300 crore began on. EarningsWithMC Infosys declared the financial results for the fourth quarter of the fiscal year 2022-23. “We expect Infosys to deliver margin on the higher side of its guidance band, with strong growth and reduced dependence on sub-contractors as attrition falls. Infosys had sought shareholders nod for Rs 9,300 crore share buyback between November 3 to December 2. Aparna Deb is a Subeditor and writes for the. While the average payout is 60 percent, an employee’s final variable payout will depend on their unit or department’s guidelines, and varies for different pay grades and departments, reported. Motilal Oswal Securities sees the stock at Rs 2,000. The payout will be given along with the salary for May. Digital revenue grew at 38.8 per cent YoY in CC terms and accounted for 59.2 per cent of the total revenue. Attrition inched up to 27.7 per cent due to a higher base. ![]() Margins for Infosys declined 200 bps sequentially to 21.5 per cent in March quarter, mainly due to supply-side pressure, higher subcontracting cost, fewer working days and lower utilisation. Similarly, it reported a 12 per cent year-on-year rise in net profit, compared to 7.4 per cent for TCS. Infosys Ltd INFY 1,249.90 4.70 (+0. Infosys said its revenue growth was 22.7 per cent year-on-year compared to 15.75 per cent for TCS. The March quarter numbers, it said, disappointed on most parameters, with revenue growth at 1.2 per cent sequentially in constant currency terms missing consensus estimate of 3 per cent, growth partly due to a one-off client-specific issue.ĮBIT margin of 21.5 per cent also fell below consensus estimate of 23.2 per cent, it noted. Nomura India said FY23 CC revenue guidance for Infosys at 13-15 per cent was ahead of Street estimates but margin guidance at 21-23 per cent fell short of it. We maintain Buy with a revised target of Rs 1,970 at 28 times March 2024 EPS, considering broad-based demand, steady market share gain and robust cash generation,” it said. “The operating performance miss would weigh on the stock in the near term. Net result is EPS cut of 2-4 per cent for FY2023-24, never a welcome prospect," Kotak said while suggesting a fresh target of Rs 1,975.Įmkay Global has cut its FY23 EPS estimate by 7.2 per cent and FY24 estimates by 4.9 per cent, factoring in the Q4 miss and lower margin guidance. These do not represent the views of Economic Times)ĭon’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp."Front-ended revenue growth guidance of 13-15% impressed, while timing and quantum mismatch between headwinds and tailwinds has led to a reset in the EBIT margin band to 21-23 per cent. Infosys Q1 Preview Profit to grow 5.5-9.5 revenues to jump 21.5-22. It operates through the following segments: Financial Services, Retail. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. is a digital services and consulting company, which engages in the provision of end-to-end business solutions. “We expect the discount to narrow given the likely support to Infosys valuations from the proposed openmarket share buyback,” it said. ![]() While maintaining its sell rating on the stock, it has lowered its target price of Rs 1,153, valuing it at 17.9x on Sept’24E EPS (10% discount to TCS target PE multiple).ĬLSA said its 1-year target price of Rs 1,800, based on 24.5x 12-month forward EPS, is at a 4% discount to its target price for TCS. The buyback would support the stock performance in near term amid market volatility,” said Sanjeev Hota, Head of Research, Sharekhan by BNP Paribas.ĭomestic brokerage Nirmal Bang pointed out that due to the buyback, ‘other income’ of the IT major goes down in FY24 and beyond, countered partially by lower outstanding equity shares. “Infosys’s decent Q2 numbers coupled with management comforting demand commentary and margin sustenance despite supply side challenges, allay investor fears in this uncertain global environment.
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