Signals, Powered By EquityPandit
Infosys Ltd has reported a healthy set of Q3FY21 numbers. Dollar revenues increased by 5.3 per cent QoQ vs. our estimate of 3.3 per cent in constant currency terms. Once again in this quarter, the company has outperformed Tata Consultancy Service (TCS) in terms of revenue growth. Infosys also reported flat QoQ margins despite headwinds of large deal transition cost and higher sub con cost. In terms of guidance, the company has revised its FY21E revenues guidance upwards from 2-3 per cent to 4.5-5 per cent and operating margin guidance to 21-23 per cent from 24-24.5 per cent. ICICI Securities maintains a Buy rating on the Infosys stock with a revised target price of Rs 1,610. The previous target price was Rs 1450. The current market price of a share of Infosys is Rs 1,370.50.
“We expect Infosys to be a key beneficiary of multi-year growth in digital technology considering its digital prowess and its ability to provide an end to end solution. This, coupled with an increase in outsourcing in the US and Europe, vendor consolidation opportunities, captive carve-outs, and cost takeout deals will further boost revenues,” says the brokerage.
Stock Covered in the news
