Ahead of Infosys Q1 results, IT majors share price SURGE! Check what brokerages expect
Ahead of Infosys Q1 results, IT majors share price SURGE! Check what brokerages expect
Ahead of its first-quarter results, the shares of Infosys are trading over 1 per cent higher to Rs 1563.3 per share on the BSE intraday trade today. The majority of brokerages believe the information and technology major to post healthy revenue and net profit in the June-ended quarter on Wednesday.
Along with good numbers, the investors are expected to keep a keen watch on the deal pipeline and recovery from underperforming verticals in the Q1 earnings of the Bengaluru-based company.
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In this regard, a brokerage firm Motilal Oswal Financial expects IT heavyweight to report a strong revenue growth on the ramp-up of large deals and higher billing days. It estimates a near 17 per cent jump on a year-on-year basis in revenue, while PAT (profit after tax) would grow up to 30 per cent.
The company's FY22 revenue growth guidance to be revised upwards, Motilal Oswal mentions as the demand commentary by the management will be closely watched by the investors.
HSBC sees first-quarter Infosys PAT to grow up to 30 per cent YoY to Rs 5,502.8 crore as against Rs 4,233 crore posted in the same period a year ago and it could rise up to 8.4 per cent on sequentially, while it expects EBIT margins to expand 230 bps YoY and 50 bps QoQ to 25 per cent in Q1 of FY22.
Similarly, Jefferies expects Q1 revenue (in rupee terms) to grow over 16 per cent at Rs 27,547.1 crore YoY and 4.7 per cent higher QoQ. While in dollar terms, it sees revenue growth of around 20 per cent to $3,737 million and it could rise near 3.5 per cent, sequentially.
Another brokerage, Emkay Global expects a 17 percent surge in revenue and a 28.3 percent rise in PAT on a YoY basis. EBITDA may see a jump of 26 percent YoY, while margin may rise 198 bps.
Choice Broking Executive Director Sumeet Bagadia mentions that Infosys shares look good on the weekly chart, and he expects the counter to grow further post results announcement. Bagadia suggests to buy the shares of IT major at Rs 1550 per share and sets a target of Rs 1585-1600 per share with a stop loss of Rs 1530 per share.
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