Stock Tips: After the announcement of the results of the third quarter of the current financial year 2021-22, the shares of the country’s second largest software company Infosys have risen today. Brokerage firms have increased its target price after the results.
Stock Tips: After the announcement of the results of the third quarter October-December 2021 of the current financial year 2021-22, today (January 13) the shares of the country’s second largest software company Infosys have risen. Infosys’ financial results were better than expected. Not only has the company’s net profit increased by 12 per cent on a yearly basis, but the company has also increased its revenue forecast for the current financial year from 16.5-17.5 per cent to 19.5-20 per cent. Market analysts have raised the target price for Infosys, given the expected strong growth in earnings. Infosys shares rose 1.62 per cent to Rs 1908 in early trade today.
Target: Rs 2,200
According to foreign brokerage firm Jefferies, the results of Infosys were much better than its estimates. Its revenue jumped 7 per cent on a quarterly basis at constant currency prices to $420 million (Rs 31052.49 crore). This growth in revenue was despite the high base of the second quarter, which according to Jefferies was shocking. Analysts have fixed a target price of Rs 2200 for investing in its shares. Talking about the risk, according to Jefferies, weak revenue growth, lower margins, currency and corporate action are not the main risks like the company’s plan.
Box Securities: Buy
Fair value: Rs 2,300
On the back of impressive results, Kotak Securities has increased its revenue estimates by 2-3 per cent on the back of strong growth in IT spending and pick-up in market share gains. Apart from this, the brokerage firm has also increased the EPS (earnings per share) for the financial year 2022-2024. According to Kotak Securities, Infosys is poised to lead the IT sector in the medium term and is able to take advantage of the IT sector’s boom. The brokerage firm has increased the fair value from Rs 2,000 to Rs 2,300.
HDFC Securities: Buy
Target price: Rs 2,200
HDFC Securities has increased the target price for Infosys shares from Rs 2100 to Rs 2200. According to the brokerage firm, the company is going to get better deals in the coming time and there is a strong prospect of its growth. Infosys is the top pick in HDFC Securities’s list of Tier-1 IT stocks.
Prabhudas Lilladher: Buy
Target price: Rs 2,234
Apart from the impressive revenue in the December quarter, the increase in the revenue estimates for the entire financial year is also giving a positive sign. Prabhudas Lilladher has increased the EPS for FY 2022 by 1.5 per cent, 4.1 per cent in EPS for FY 2023 and 3.1 per cent in EPS estimate for FY 20224 due to increase in revenue estimate. The brokerage firm has increased the target price for investment in Infosys to Rs 2234 per share.
(Article: Kshitij Bhargava)
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
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