Infosys shares tank to 52-week low after IT major's Q4 results; Anil Singhvi sees support at Rs 1,200-1,245
Infosys (INFY) share price: The stock of India's second largest IT company suffered huge losses on Monday after top brokerages downgraded the firm and cut their target prices for its shares by as much as 30 per cent following the earnings announcement.
Infosys (INFY) shares tanked to a 52-week low on Monday, as the country's second largest IT company saw a barrage of downgrades and downward revisions in target prices by top brokerages following the release of its Q4 results. Infosys shares tumbled by as much as Rs 169.6 or 12.2 per cent to Rs 1,219 apiece on BSE, after the company reported a much-worse-than-expected set of earnings for the January-March period and announced a dividend of Rs 17.5 per share.
The stock finished the day with a loss of 9.4 per cent at Rs 1,258.1 apiece on the bourse.
Infosys Q4 results summary
Infosys reported a seven per cent sequential drop in net profit to Rs 6,128 crore for the January-March 2023 period, a day after TCS kicked off the Q4 results season by reporting a muted set of quarterly numbers. Its revenue came in at Rs 37,441 crore for the three-month period, as against Rs 38,318 crore for the previous quarter, according to a regulatory filing.
Infosys guidance
Infosys pegged constant currency revenue growth at 4-7 per cent for the year ending March 2024 and operating margin at 20-22 per cent. Read more on Infosys guidance
EDITOR'S TAKE | Anil Singhvi sees support for Infosys futures at Rs 1,200-1,245 levels
Zee Business Managing Editor Anil Singhvi said the IT major's results were "weak with a poor guidance". He sees support for INFY futures emerging at Rs 1,200-1,245-odd levels.
Read more on Infosys Q4 results | Key highlights
Here's what brokerages make of Infosys after the Bengaluru-based IT major's Q4 results:
Credit Suisse downgraded the stock to 'neutral' from 'outperform' and reduced its target price of the IT major's stock from Rs 1,760 to Rs 1,240, implying a downside of 10.7 per cent from Thursday's closing price.
| Brokerage | Rating | Target |
| CLSA | Revised to 'outperform' from 'buy' | Cut to Rs 1,550 from Rs 1,800 |
| JP Morgan | Revised to 'Underweight' from 'neutral' | Cut to Rs 1,200 from Rs 1,500 |
| Citi | Revised to 'neutral' from 'buy' | Cut to Rs 1,400 from Rs 1,675 |
| Morgan Stanley | Overweight | Cut to Rs 1,475 from Rs 1,625 |
| Credit Suisse | Revised to 'neutral' from 'outperform' | Cut to Rs 1,240 from Rs 1,760 |
| Jefferies | Buy | Cut to Rs 1,570 from Rs 1,770 |
| Nomura | Revised to 'neutral' from 'buy' | Cut to Rs 1,290 from Rs 1,660 |
| Macquarie | Revised to 'neutral' from 'outperform' | Cut to Rs 1,400 from Rs 1,770 |
| HSBC | Buy | Cut to 1,550 from Rs 1,775 |
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