Infosys Outlook: Infosys shares gained 4 per cent today after the announcement of the second quarter results. In 2021 this year, its shares have gained 37.6 per cent and now it has reached a price of Rs 1785. In such a situation, it is confused in front of investors whether to book profit taking advantage of this boom or there is an opportunity to earn more profit in front of them. Market experts are advising to buy it as the company’s growth is expected to continue.
The consolidated net profit of the country’s second largest IT company grew by 11.9 per cent year-on-year to Rs 5421 crore in July-September 2021. Apart from this, the revenue also increased by 20.5 percent to Rs 29602 crore. The giant IT company has announced a dividend of Rs 15 per share to the investors.
Infosys Q2 Result: Infosys reports excellent profit in the second quarter, up 12 per cent to Rs 5,421 crore
Box Securities – Buy
Fair value – Rs 2,000
Analysts at brokerage firm Kotak Securities called Infosys the prince of all listed IT companies after its strong performance. Kotak Securities has increased its revenue and EPS (earnings per share) estimates. According to analysts, the company’s revenue may grow in double digits in the next three years. According to Kotak Securities, Infosys will play a major role in the core transformation deal and increasing digitization. Its growth is expected to be better in the medium term. The brokerage firm has increased its fair value to Rs 2,000.
Emkay Global – Buy
Target price – Rs 1,910
Infosys made 22 major deals in the July-September 2021 quarter, making Infosys’ deal pipeline looking healthy. Some of these deals are new and some have been renewed. The brokerage firm believes that Infosys can get better revenue from these deals. Analysts at Emcoy Global have increased the earnings estimates based on the IT company’s performance in the second quarter. The brokerage firm has retained its buy rating in view of better results and further increase in demand and has fixed a target price of Rs 1910.
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Yes Securities – Buy
Target price – Rs 2,026
Infosys’ revenue and EBIT margins in the last quarter were better than the estimates of Yes Securities. Now analysts believe that the company’s revenue can grow at a CAGR (Compound Annual Growth Rate) of 14.9 percent in the financial year 2022-2024. During this period, the average EBIT margin of the company can grow at the rate of 24.7 percent. While retaining the buy rating of Infosys, Yes Securities has increased its target price to Rs 2026.
(Article: Kshitij Bhargava)
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