Infosys share price hits new life high amid healthy Q1 numbers; brokerages bullish on stock, raises target - What investors should know

Amid healthy first-quarter results, the shares of Infosys have touched a new 52-week high to Rs 1597 per share after surging around 1.5 per cent on the BSE intraday trade today. Even the brokerages are bullish on the counter with the majority of them maintaining Buy rating and raising the price target.

Infosys on Wednesday reported a 22.7 per cent year-on-year growth in profit to Rs 5,195 crore in the first quarter of the financial year 2021-22 as compared to Rs 4,233 crore in the same period a year ago. Sequentially, the net profit grew marginally by 2.3 per cent from Rs 5,076 crore in Q4 of FY21. 

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While the company’s revenue grew by nearly 28 per cent YoY to Rs 27,896 crore and in dollar terms, the revenues jumped over 22 per cent YoY to $3782 million in the June-ended quarter in FY22. 

The company raised revenue growth guidance to 14-16 per cent, while mentioning in a statement that large deal flows remained strong with TCV of $2.6 billion in Q1.

Goldman Sachs cut EPS estimates for Infosys by 2-3 per cent but reiterates a Buy rating, given best-in-class digital capability, seamless management execution. It sets a price target of Rs 1781 apiece.  

Similarly, Citi says Infosys reported a good Q1, maintains BUY on the stock with a target at Rs 1785 per share, however, tweaks EPS estimates marginally for FY22-24. It says, TCV of new deals lower than recent trends and can be volatile QoQ, adding further rise in attrition will have implications for margin.

Infosys remains preferred play on growing digital spending, CLSA says, adding that the IT major is also a part of its India Focus Buy List, While the global brokerage cut FY22 CPS by 2 per cent, and FY23/24 EPS estimate remains broadly unchanged. It gives a Buy call with a target of Rs 1900 apiece.