Infosys zooms 4.7% on share buyback announcement, revenue guidance and strong deals pipeline

Infosys share price jumped more than 4.5 per cent in early morning deals on Friday as the Street gave a thumbs up to the Bengaluru-based IT major's September quarter results and share buyback announcement. Infosys stock price opened at the day's high price of Rs 1,487.70 on BSE, rising 4.79 percent.

Infosys posted a consolidated consolidated revenue of Rs 36,538 crore for the period ended September 30, 2022 (Rs29,602 crore -Q2FY22) and a net profit of Rs 6,021 crore a rise of 11 per cent from Rs 5,421 crore in the same period a year ago. Click Here For Latest Updates On Stock Market | Zee Business Live

More importantly, the IT firm has raised its revenue guidance for FY23 to 15-16 per cent from the 14-16 per cent earlier.

The icing on the cake is that Infosys also announced a buyback of shares – its fourth in the last five years – worth Rs 9,300 crore, and declared an interim dividend of Rs 16.50 per share. Click here to read about Infosys Q2 Results 

"In line with the capital allocation policy, the Board has announced an interim dividend of Rs 16.50 per share, an increase of 10 per cent over FY 22 interim dividend and an open market share buyback of Rs 9,300 crore," Chief Financial Officer Nilanjan Roy said in a company statement.

Global brokerage firm Credit Suisse, has given an outperform call on Infosys, revising its target price from Rs 1710, topping it by Rs 10 from the previous Rs 1700.

HSBC has also given a buy call, but reduced target price of 1640 by Rs 25 per share from the previous Rs 1665.

CITI has raised the target price by Rs 60 per share with a buy rating. It had set a target of Rs 1,625 earlier which now is set at Rs 1685. 

So far this year, Infosys has corrected nearly 22 percent. The stock is available at a discount of nearly 30 per cent from its 52-week high of Rs 1953.90. At today's share price levels, Infosys' market cap is at Rs 6,21,075 crore, as per the BSE.